Earlier quoted context omitted.
Having a full-time and well-paid job means that open source work is in my spare time, and that time is limited and precious. I don't actually want to be paid for that. Or have any written or unwritten major obligations to others. The amount I need would have to be a full-time job that pays better than my current full-time job, and that will be expensive. I've previously worked on large open-source projects like Debia…
I have the same issue as you, not in open source but in freelancing. Occasionally I'm approached by someone in my network who needs a few hours of software development. In the past I tried this, figuring that I may as well earn a few bucks on the side during my free time. But then I realized the enormous overhead that comes with taking payments in Israel. I'd need to open an account with the tax authorities and deal…
The second year, I just paid an accountant to do it for me. It was very expensive given that the accounts could be written in their entirety on a single sheet of paper. But I had the peace of mind that it was all done correctly by an expert, and they were responsible for ensuring it was all done by the book and filed properly. And they found a few mistakes I made in the previous year.
The accounts are essentially a fixed overhead; it doesn't get much more expensive if you do 10 or 100 times the business. But that makes starting out hard because it's a big annual fixed cost.
I do wish freelancing was easier, be it on closed or open projects. It does seem like governments have stifled entrepreneurship with overly burdensome taxation policies. I'm not opposed to paying income tax, but I do think it could be made sufficiently simple to pay for small freelance activities that it's not deterring it, and that would be beneficial for the economy overall. Many of these small jobs could be the catalyst for the formation of a new company if they take off.