Click chart to enlarge

The chart above is a chart of SPY, which tracks the S&P.  It is in the same place as it was 6 months ago, which we predicted in our last post.  We didn't know what path it would take to get back here, but we did know that it had no upside.  Why?  The Obama tax code is designed to support the lazy and hurt the ambitious.

Here's the math...

For the average New York family making less than $217k, the taxes are as follows:

Federal income tax: 28%

Social Security tax: 10.4% + 2% at maturity = 12.4%

Medicare tax: 2.9% + .6% at maturity = 3.5%

NYS income tax: 6.9%

NYS sales tax: 8.63%

Real estate tax: 5%

Total tax: 64.43%

With 2/3rd's of their income going to taxes, and nearly all the rest going to health insurance, the average self-employed New Yorker earning $200k a year gets to keep about $17,000 of their earnings.

In contrast, the average New Yorker making $17,000 a year gets to keep 100%, or $17,000 of their earnings.

When you consider that the lifeblood of America's economy is its small business owners, it hardly seems efficient to take their incentive away.