> For me to end up with the same amount of money after paying a company $100 rather than doing something myself, I have to go out and make an extra $167. That company probably then pays the actual worker something between $25 and $50
For some types of services, once you've found a person who does good work, you can privately ask them if they'd like to cut out the middleman: they get a pay raise and you pay less. This is particularly relevant for online services that find a professional for you.
I'm not talking about paying people under the table. I'm talking about cutting out whatever agencies or referral services are adding a substantial portion of the overall cost.
> The middleman being the IRS?
Only to the extent the money may get taxed 2-3 times on its way to the actual person doing the work (which may or may not be the case in any particular instance). (For instance, sales tax and multiple levels of income taxes.)
For some types of services, once you've found a person who does good work, you can privately ask them if they'd like to cut out the middleman: they get a pay raise and you pay less. This is particularly relevant for online services that find a professional for you.