The governments found out that people are making too good money doing this. For example in the UK there is a term "disguised employment" thrown around and consultants being smeared as tax dodgers. This year they changed the law, so that company must declare whether hired person is a genuine contractor or de-facto an employee. There is a fine if they declare a disguised employee as a contractor, but not the other way around. The effect is that companies now offer contracts that always place a contractor as a disguised employee to avoid problems with the tax man. As a result such consultant has to pay over 50% in effective tax. Many good ones I know already looking to move overseas.