Did you know your employer also pays tax on your salary? It costs the employer $200 to pay you $6,667. In other words, every time you spend $10 of your hard-earned money, $2.61 goes to the government.

So, with you and the employer both paying tax, what used to be a 23.1% tax rate now rises to 25.3%, meaning your real tax rate is actually 2.2% higher than what it seemed at first.