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I don't know a lot about US taxes, but do you only pay federal taxes? I thought there were also state taxes. And why are self-employed hit with a special tax?
by wodenokoto 5y ago
I don't know a lot about US taxes, but do you only pay federal taxes? I thought there were also state taxes.
And why are self-employed hit with a special tax?
- Justin_K 5y agoSome examples of self employed taxes are so the individual can contribute to social programs like social security, unemployment and medicare.
- TacticalCoder 5y agoSame here. Where are the state tax computation?
- gher-shyu3i 5y ago> And why are self-employed hit with a special tax? To discourage self employment and innovation so people remain corporate slaves.
- biztos 5y agoMost states have taxes, and California -- where many of the best contracts are -- has quite high taxes. The self-employed aren't taxed extra per se: they "just" pay the employer and employee portions of the social taxes. Which is a big pain when you're self-employed and feels super unfair, but that's the logic. On the other hand you can put more money in a tax-deferred retirement account (401K etc) than regular employees, so I think it might cancel out the added tax if you have a good accountant.