We have social security tax, which is 14.2% (including medicare). The employer pays 50% and the employee pays 50%. When you're self employed - you're the employ

We have social security tax, which is 14.2% (including medicare). The employer pays 50% and the employee pays 50%. When you're self employed - you're the employer as well as the employee so you pay the full 14.2%. That 6.1% increase is usually a lot and hard to get enough deductions to offset it.