On Wednesday 30 July 2008 12:37, Mike Dikan wrote:
> This is true, but as someone else mentioned, factor in deductions, and  
> the fact that SS/Medicare are a relatively small part of taxes when  
> put up against the 800-pound gorilla of income taxes, and the tax  
> rates are roughly similar.  It maybe be a few more % (single digit) as  
> a freelancer, but they are pretty similar for comparison. 

Incorrect, it's 15.3% on the first $94K
http://www.irs.gov/businesses/small/article/0,,id=98846,00.html

Also, just because something is deductable does not make it free. Also your 
two biggest costs, Retirement and Health Insurance, which are subsidized by 
the tax code for salaried employees, are NOT deductable and come straight out 
of pocket.

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