Apparently, for some who make $ 400,000 a year, the struggle is real.
Joe Biden defines that threshold as "wealthy," and according to CNBC, those who make that much money represent the top 1.8% of taxpayers, but the reality of the local realities in big, expensive cities tells a different story.
In fact, at least one cruncher says that type of salary barely covers the bills in New York, San Francisco, Los Angeles, etc.
"Based on spending, a household income of $ 400,000 makes for a relatively middle-class lifestyle," the popular blogger Financial Samurai was quoted as saying on CNBC. "A middle-class lifestyle is defined as owning a home, having two children, saving for retirement, saving for college, taking modest vacation weeks a year, and retiring in your early 60s."
Here's how he breaks it down:
So $ 400,000 a year brings you $ 34? That includes getting the most out of your 401 (k), having a nice home, vacationing, etc. Those who earn a lot less and can't make ends meet don't shed many tears, but it's still so easy to do understand why someone on such a salary does not feel wealthy.
"They don't live on $ 400,000 a year," said the financial samurai.
Here's more of the story courtesy of CNBC:
He has Biden's tax plan wants the social security tax to drop from 12.4% on incomes over $ 400,000 and is also trying to reset the top tax rate from the current 37% to the Obama-era tax rate of 39.6%.
Individuals with adjusted gross income of $ 400,000 or less would see an average decrease in after-tax income of 0.9% according to Biden's plan, while those who meet this threshold would see a 17.7% decrease in after-tax income according to a Wharton School budget model would of business.