What I’m trying to say (and badly) is NOT that the poor self-employed person has it bad — but that the person who works for a big company at $22 an hour is getting paid probably $35 an hour in “real” dollars. Or look at it this way: if it was just you cut loose to earn your own hourly wage, you’d have to charge $35 an hour to come out on the same plateu (matched social security, paid time off, insurance and retirement benefits) as a company guy whose salary breaks down to $22 an hour.
When you bill your time out you had better maintain a good level of productivity. 40 billable hours can be a very long week.
A good general rule when going independent. Take you annual salary in k$ make, it your hourly rate in $. Firing you former PHB is just a bonus.