Government

Does your income make you rich?

It would appear your political affiliation is the determining factor. For some reason there are more rich people under Democrats. That appears to be a conundrum, but hey if you want to be rich, elect Democrats. 🤭

Back in 2012 Democrats were looking to raise taxes on individuals earning $400,000 or more and couples earning $450,000. Before that the Obama administration considered $200,000/$250,000 wealthy.🤑

[All this is not just about income tax though. Once your taxable income gets above $200,000/$250,000, the Medicare tax jumps by 0.9 percentage point to 3.8% (1.45% may be paid by employer). The 3.8% Medicare surtax doesn’t just apply to earned income. Your net investment income is also taxed at 3.8%].

Today the top tax rate under tax reform kicks in at $500,000/$600,000, presumably the new rich.

Don’t you wonder how politicians figure that two individuals each earning $199,000 are not rich, but if they get married they are $149,000 more than rich? ($199×2-$249). At least Republicans throw in an extra $50,000 in their bizarre logic. It pays not to get married perhaps. On the other hand, it definitely pays to get divorced if you each earn $300,000.🤫

Neither party considers location so I guess if you choose to live in the Northeast you can be less rich than in the Deep South or you can be really rich if you live in the South. Keep in mind that if you are the $200,000 and above rich, you pay 58.9% of all income taxes and you represent 4.5% of all tax returns filed. (PEW Research).

I guess you really are rich.

I wonder what Bernie Sanders would say if I told him that two cohabiting school employees in my town were rich? 🤑 not to mention some of those really rich professors in those unaffordable colleges.

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1 reply »

  1. I can’t wait for the comparison of what is being poor.

    One day the gross earning to meet eligibility for certain entitlement programs is going to overlap with the income brackets of being “rich”. You’ll be able to get food stamps and then be taxed for it that way the politicians can appear to give you “more”.

    Like

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