In the US about 5-10% of people are “self-employed” and have access to all their pre-tax income.
Essentially a single employee business, they are required to withhold their own taxes from their earnings, including the employment taxes normally paid by the employer, etc. which is an additional 15.5% on top of the progressive income tax.
Aside from that, in the US there are forms you fill out at the beginning of employment which determine how much is to be withheld. While they can be updated at any time, it’s not always done promptly. Divorce or death of a dependant child could increase how much is withheld.
I have been self employed for almost 20 years. I pay a far higher tax rate than billionaires and I haven’t been able to afford to go to the dentist even once in that time.
In the US about 5-10% of people are “self-employed” and have access to all their pre-tax income.
Essentially a single employee business, they are required to withhold their own taxes from their earnings, including the employment taxes normally paid by the employer, etc. which is an additional 15.5% on top of the progressive income tax.
Aside from that, in the US there are forms you fill out at the beginning of employment which determine how much is to be withheld. While they can be updated at any time, it’s not always done promptly. Divorce or death of a dependant child could increase how much is withheld.
I have been self employed for almost 20 years. I pay a far higher tax rate than billionaires and I haven’t been able to afford to go to the dentist even once in that time.