For the same job making the same income, you'll typically pay more taxes as a contractor than as an employee. You'll pay 100% of your SS/medicare taxes via the

For the same job making the same income, you'll typically pay more taxes as a contractor than as an employee. You'll pay 100% of your SS/medicare taxes via the self-employment tax, where previously your employer was paying 50% of it for you. The income tax brackets are the same. You can deduct business expenses, but so could your employer, so the IRS isn't missing out on anything.