Earning six figures and just scraping by
Posted
Apr 17 2009, 01:10 PM
by
Kim Peterson
Rating:
It's a little hard for me to feel sorry for the people making $400,000 a year and saying they're "barely getting by." Yep, people actually say that in this Wall Street Journal article about the Obama administration's push to raise rates for the highest tax brackets.
The article does focus on a serious issue, but come on, quoting the surgeon's wife who says her 2,500-square-foot home is simply not big enough? She has an Infiniti and a vacation home in Florida, but insists she's "good old middle class."
The question raised is how families making more than $250,000 a year will be affected by proposed tax increases, which aim to increase the upper tax bracket to 36% from 33%. What will happen to people just above that threshold?
"It is a tricky situation in which some Americans find themselves after a long boom: They are by no means struggling, compared with the 98% of Americans who make far less, but depending on where they live and the lifestyle choices they have made, they don't necessarily feel rich, either. Worse, in their view, they are facing the same tax rates as those making millions."
The mayor of San Jose says a family making $250,000 a year can't buy a home in Silicon Valley. Funny, I live in San Jose and know people who do it on less. They're not buying mansions, but they buy.
At any rate, this article is one of the most commented on in the Journal today. Here's what some people are saying about it:
"Try to live as a couple in NY City on $250,000 with two kids. Oxford family HMO is $2,800 PER MONTH; income and payroll taxes take about half off the top with CIty and State, basic housing is $5-7,000 month for 2 bedrooms, food and clothing another 1500 easy without going out."
"There's apparently a level of consumption which people feel entitled to, and it's apparently someone ELSE's fault that they can't consume on the level for which they are accustomed to."
"I think fundamentally there's a fairness issue. The top 10% of earners pay 68% of the taxes and now with the proposed changes this burden potentially increases. These tax cuts on 95% of americans are coming to americans that don't really bear the tax burden to begin with."
"The people in this article clearly could be better managing their money. I make well under 100k every month yet I still manage to save a third of my paycheck everymonth so they could do it if they wanted to."