Total tax paid
$0.35
Did you know your employer also pays tax on your salary? It costs the employer $0.20 to pay you $9. In other words, every time you spend $10 of your hard-earned money, $0.39 goes to the government.
Real tax rate
3.8%
So, with you and the employer both paying tax, what used to be a 1.7% tax rate now rises to 3.8%, meaning your real tax rate is actually 2.1% higher than what it seemed at first.