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What older people as your 'income' tax has two tax brackets each with its own tax rate from 10% to 35% (2009). These rates are added to your taxable income which is income a lot more your 'tax free' salaries.

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For his 'payroll' tax as the employee he pays 7.65% of his $80,000 which is $6,120. His employer, though, must pay for the same 7.65% - another $6,120. So involving the employee and his awesome employer, the fed gets 15.3% of his $80,000 which in order to $12,240. Keep in mind that an employee costs a boss his income plus 7.65% more.

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