He might be including the employer&#x27;s share of FICA tax.<p>If you&#x27;re single and your AGI is $60,000, your taxable income is $49,700 (or lower, if you itemize deductions). You&#x27;ll pay $8218.75 in Federal income tax, $3081.40 in social security, and $720.65 in Medicare, for a total of $12020.80 (24.2%). If you include the employer share of social security and Medicare, it comes out to $15,822.85 (31.8%).<p>He probably should have mentioned it if that&#x27;s what he really did, but those taxes are real. Ask someone who&#x27;s self-employed.