employment taxes do you really know what the tax rate is on your employment? let's consider the median household and numbers pulled off of the internet. it makes $50k per year. it directly pays federal income taxes 5.6%, social security taxes 4.2%, medicaid taxes 1.45%, state taxes 6.7%. those are the ones that show up on your pay stub. there are also hidden taxes that your employer pays on your behalf that never actually show up in your paycheck. social security taxes 6.2%, medicaid taxes 1.45%, unemployment taxes approximately 3%. for a grand total of about 28.6%. however, we've mixed inner and outer taxes. which isn't mathematically precise. let's imagine that congress revamps things so your employer pays all of the taxes and your paycheck is cut to what you actually take home. in this case, the median income becomes $41k and the employer's outer "sales" tax rate is 35%. ouch! okay so turn things around. let's imagine that congress revamps thigs so /you/ pay all of the taxes and you get a raise to cover it. in this case, the median income becomes $55k and your inner tax rate is 26%. keep in mind that in all cases you take home the exact same amount. your employer pays the exact same amount. and the government collects the exact same amount. we're just quibbling about how to keep the books. in the end, in order for you to take home $41k, your employer pays $55k, and the government pockets the $14k difference. it's good work if you can get it.  ¶ 8:00 AM