250K A Year And Still In Red

May 17, 2011 4:24 am

Obama’s definition of the rich or ‘more fortunate’ as households making more than 250K a year has come under constant criticism for quite some time now. The core issue seems to be that it needs to be tied to geography in some way – 250K in Florence, Alabama is not the same as 250K in NYC, NY. We spotted some good stats on this today:

“The bottom line: It’s not exactly easy street for our $250,000-a-year family, especially when they live in high-tax areas on either coast. Even with an additional $3,000 in investment income, they end up in the red — after taxes, saving for retirement and their children’s education, and a middle-of-the-road cost of living — in seven out of the eight communities in the analysis. The worst: Huntington, N.Y., and Glendale, Calif., followed by Washington, D.C., Bethesda, Md., Alexandria, Va., Naperville, Ill. and Pinecrest, Fla. In Plano, Texas, the couple’s balance sheet would end up positive, but only by $4,963.”

The complete analysis is here. This is the conclusion:

“For folks like the Joneses who live in high tax, high cost areas, who save for retirement and college, pay for child care to enable two incomes, and pay higher prices for housing in top school districts ? $250,000 does not a rich family make.”

Statistics Source: The Fiscal Times

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