"Wealth-less-effect" people need to do some math
In an article that also appears in Yahoo!Finance, Gary Fields writes of a couple earning $260k/yr who "want a reality check on what rich means":
If their AGI is $260k and their marginal tax rate on the last $10k goes from 33% to 36%, their taxes will go up by $300. $300 total, per year: $25 per month.
Perhaps they could tithe $1275/mo at the church. (I think God would not object.) This would keep them with the same amount of left-over pay; they would not even notice the tax increase.
Proposed Tax Increases on Six-Figure Earners Highlight Mounting Costs of Living -- and the Relativity of ProsperityPerhaps they need to do a bit of arithmetic, then.
[snippage]
For the Parnells, their perception of themselves is based on the math. The value of their house is down $60,000. Ms. Parnell says the couple's gross income last year was about $260,000. Taxes, premiums for medical care and deductions for Social Security and their 401(k) contributions cut the gross to about $12,000 per month. The family tithes $1,300 a month at their church. Their mortgage, second mortgage and payment on land they bought is nearly $4,000 a month. Other expenses, including their family car payment, insurance and college funds, as well as basics like food, utilities and donations to charities, leave them with about $1,200 left over each month.
If their AGI is $260k and their marginal tax rate on the last $10k goes from 33% to 36%, their taxes will go up by $300. $300 total, per year: $25 per month.
Perhaps they could tithe $1275/mo at the church. (I think God would not object.) This would keep them with the same amount of left-over pay; they would not even notice the tax increase.
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Excellent arithmetic ct. And let us pray this couple never knows what it's like to not be 'saddled' with that $1200/month of discretionary income. Rec'd.
April 20, 2009 1:22 PM | Reply | Permalink
Van Moore, an optometrist in Sevierville . . . is making just above $250,000.
How the hell does a 30-something optometrist in Tennessee make a quarter of a million dollars a year? Dolly Parton lookalikes only wear Dolce Gabbana and Prada eyeglasses?
April 21, 2009 1:35 AM | Reply | Permalink