Well, you begin by not saying "you're out of touch". =p You begin by saying "According to my research, these are the market rates for someone in my position. What are your thoughts?"

If it's really that he just didn't know what the going market rates are, then showing him the numbers shouldn't be insulting to him or the company; they're not purposefully underpaying you. If they were aware, then this is probably the gentlest and most professional way of "calling them out".

You might want to check out this classic:

http://www.amazon.com/Negotiating-Your-Salary-Make-Minute/dp...

Which goes into the strategies of salary negotiation, including raises and benefits and all that other good stuff.