A gig economy is an environment in which temporary positions are common and organizations contract with independent workers for short term engagements.
So as to increase the number of people who are employed in various sectors both private and public sectors, this will then increase the amount of tax revenue collected by the government hence will increase the funding of other sectors. Gig economy is a way of avoiding taxation by the authorities as the involved people tend to avoid direct links with the revenue authority. This increases the level of tax evasion and avoidance in the economy hence killing the smooth economic growth.
It in a negative trend in the economy, people in the contracting areas don’t pay taxes. The revenue collection is low. This will reduce the funding of Social Security, Medicare, and unemployment insurance programs