Sorry, Pal, You're Rich

Excellent, excellent article. When Phil Gramm said we're "a bunch of whiners", he must have been talking about the poor "middle class" people making $250,000 - and he was right!

I represent quite a few citizens: I was the first in my family to graduate college (paid most of the tuition myself); worked hard my whole life and achieved compensation of greater than $250,000 the last ten years of my working life. I paid for undergraduate school and graduate school (100%) for my three children. I lived in a modest home and drove modest autos. I can tell you that when all was said and done, we are OK, but definitely not rich. I am not rich in material things and I resent people telling me that I am rich and I earned my wealth at the expense of the working class. I was the working class (50+ hours per week plus a commute). My kids make me rich, but i will only share that with them.

My husband and I have worked our tails off all our lives and currently come home with around $35k after taxes. $10+ of that goes to medical insurance premiums and medical costs (for two ridiculously healthy old codgers) and another $6+ on the mortgage. We owe nothing (except that mortgage), drive 15-year-old vehicles in excellent condition, and have never taken a government handout (no, not even unemployment). And we're as rich as Croesus because we have each other, are beholden to no one, have a cute little roof over our heads, and can put good food on the table every day. I just wish we could save more for retirement, which is less than a decade away, but oh well...

Here's an idea: FLAT tax rate (no brackets) but MASSIVELY higher standard deduction, which takes into account expenses that real middle class people and poor NEED. For example, on a state-by-state, or district basis, calculate a reasonable amount for decent (not luxury OR slums) housing, decent food (groceries-not restaurants).

For exemptions, like for children, calculate reasonable amounts for food, clothing, school expenses, etc.

Take the exemption amount and deduction amount out of the income, and then tax the taxable income at some single rate for everyone, like 80% or such. The taxable income would represent discretionary income after basic life expenses.

With a large enough of a deduction, most of the middle class would not have their taxes change. Lower middle class and poor would pay nothing.

Basic life expenses really aren't a choice. it is more reasonable to ask someone to choose for their kids to get student loans or work harder so they get scholarships or go to a state university, than it is to ask someone to live in a rat-infested, slum apartment. It isn't income that should be taxed; it is what you have left to spend after paying for life necessities, like clean water, clean & safe shelter, food, clothing.

My wife doesn't pay $400,000 for college. Probably has something to do with the fact that I don't make $250,000 year and that she gets her college mostly paid through grants since she has a 4.0 average.

. Have you people ever driven into a city like Baltimore and saw people on the street corner????

Why should we feel sorry for them??? They choose to be that way! So why should any of us have to pay more taxes to pay for them. You stupid people want a socialist country go to china!!! Don't ruin America! America is all about success. Are you people shunning our Olympians for getting millions in sponsors NO your not are you, Your chanting them on for bringing home the gold and representing your country. Seriously the 250k number is per family not individual. I could seriously see the gripes about it if it was not based on household income but the key word there is HOUSEHOLD. It???s not that much money per household depending on the area. Please people don't be jealous of others success you too will get there one day and if you don't it???s by your own doing. Its not the MAN trying to keep you down.

FLAT TAX LIKE THE OTHER MEGA POWERS, We pay 30 to 38% in taxes every pay period, 7% sales tax when we have to purchase anything, and then we have to give a certain percentage to 401K to get the employer match. Then you have health insurance that runs on average over $400 a month for a family play. So every pay period we get to keep an average of 40% of the money we earn. I get tired of how every presidential election they are going to help the middle class then when re-election comes around the current president made the rich, richer! It's getting old on these advertisements, and false politics. If everyone is always helping the middle class; how come the middle class is always advertised as suffering? This country needs some help, I dont think it will start with who is President, I dont know how to start it, but FLAT TAX would be a good start, then we know everyone would be paying their fair share.

Awesome article. I'm sick of people whining about money when they make over 6 figures. If they'd only learn to live within their means, they'd find out how well they could do. I make $175,000 annually in a midwestern city and feel very fortunate. As a physician I know many other docs earning tons more and complaining they don't make enough. I paid off my loans, owe nothing on my cars or credit cards and am aggressively saving for retirement and my kids college education. We take regular vacations and are able to afford the luxuries that are important to us.

Simple answer FAIR TAX

Seems appropriate that the band STYX is playing at the Repub convention, since they had the hit Grand Illusion: "So if you think your life is complete confusion, because your neighbors got it made; just remember that its a grand illusion, and deep inside were all the same."
Or perhaps Blue Collar Man: "Paradise, can it be all i heard it was, I close my eyes and maybe i'm already there"
The rich (those making over $250 K) are afraid of Obama taking away their Bush Tax Cuts, similar as the Oil Companies afraid that they'll lose their huge (at the consumer's expense) profits.
Yes, live within your means, but that doesn't mean that you should crush others for your own greed.

I find the author of this article negligently obtuse. It has nothing to do with keeping up with the joneses. It does have to do with me being knocked down to the same take hope pay as someone earning a third less gross pay then I do. What is my motivation to work harder and be a better producer for my employer when the govt simply is going to negate it. So the person who didn't work as hard or strive for success can live just as well. We pay most the taxes already to begin with. Here here for the flat tax rate!

FAIR TAX

By the way, it's a capitalist society, which means the wealthy are supposed to come out on top. That's the entire premise. This isn't the horrible thing everybody pretends it is because in America ANYONE CAN BECOME WEALTHY if they work hard.