According to my math, a first year driver making $37,000 a year takes home more than a $40,000 year

You're mixing employee wages with running a business ... gross revenues from business are not the same as gross wages for an employee.

It's really simple if you know - not believe, taxes are matterof fact, not faith - feel free to point out in the tax code or the line/form where a W2 employee takes the deduction for their SSN taxes.