Sorry, Pal, You're Rich

You are of course correct that it is impractical to try to tailor the federal income tax system to account for geographical differences in costs of living. But thats not the point of your story. Your claim is that 250K/yr. makes you rich in an economic sense regardless of where you live, even if that is in Manhattan. And that is demostrably false. Its not just that the 250K/yr. manhattanite feels poor in comparison to his "filthy rich" investment banker neighbor. And its not just, as you put it, that one might not be able to afford their "dream house." Its that 250K/yr. in Manhattan won't even buy you a decent 3BR apartment in a decent neighborhood. Its very hard even to find a decent 2BR apartment for under $1M. You can say 250K is "pretty good coin," and most of the people who read your article and live outside Manhattan will eagerly agree that any such person is "rich" because they simply cannot appreciate how high the cost of living is in some areas of the country. But stop for a minute and consider the fact that a family of 4 in Manhattan on 250K/yr. cannot afford separate bedrooms for their kids and a living space that will accomodate both a couch and a dining room table. How can you credibly call such a family "rich" in any objective financial sense?

If you're going to raise taxes on everyone making over 250K/yr., including those that reside in Manhattan and other areas with extremely high cost of living, at least be honest and tell them its because you've determined its necessary. Don't insult them by insisting they are "rich" by definition and therefore deserve it.

Oh my! I can't believe some comments I've read. I live in suburbs of Chicago. My husband and I make $60,000 a year, have about $50,000 in 401K, are in our forties, have one child, and no savings. We say we live paycheck to paycheck and mean it! We can only afford to pay minimum payments on our bills and end up having to Craigslist items, borrow money, or avoid paying regular bills if anything unexpected comes up. We even sleep on a mattress on the floor because we can't afford the luxury of a bedframe. And we used to think we are middle class but I guess we aren't. I guess we are lower class. Yet, we live in a house, own two cars (although one has no muffler) and live in a very culturally diverse neighborhood. I have a sibling who lives in an exclusively white neighborhood, makes above 100,000 maybe above 200,000 I don't know for sure and says they live paycheck to paycheck. They pay all their bills in full, have a maid, their three children go to private school, and they pay all unexpected bills immediately. How can we both be middle class and live paycheck to paycheck. People always want more money in our capitalist society. That's why someone who earns $250,000 doesn't want to say they are "upper" middle class--because they want to blend in with the commoners and our struggle to make ends meet. Additionally, if they say they are "lower upper class" they just can't get around the term lower so they actually believe they are middle class. Ya know, I have a friend that lives in an apartment, is a single mom, has no savings and makes $25,000 a year. I asked her if she thought I was rich and she said of course not! So not everyone thinks people are rich just because they make more than oneself. I'd love someone who makes $250,000 a year to tell me where I stand in the classes.

Thinking you're middle class when you bring down $250K is insulting. I am college-educated with more than 10 years in my field, and I still only make $52,000 PY, largely because I live in the Southeast. Try paying $1,000 per month for daycare on that salary.

hershey1 is an idiot. McCain said 5 million net worth is rich, not an annual salary.

I come from a small town in northern Wisconsin. My family makes approx. $50,000 a year and in no way are we stressed for money. My sister just completed four years in college and I am beginning my first and money has not been a major issue in our education as of yet. Many people in my community make far less than my family and there are a few who make more but in such a small setting, the competition to out-do your neighber just doesn't seem apparent.

According to John McCain, he does not consider you rich until you earn $5,000,000 (FIVE MILLION DOLLARS!) !!!! To him earning $250,000 makes you poor! Talk about living in another world!

Rich has more to do with net worth than income, and this writer is typically naive in not understanding the difference. An income of $250,000 means you are in a high tax bracket with nearly every tax break phased out (college tuition credit as a nice example). Two kids in college? Take $60000 pretax off the top b/c you pay for college pretax and you need to earn $60k to have $40K left over to pay the full loads of both kids; you are too "rich" to qualify for aid. We need to calculate rich as net worth; not income. You can be a billionaire and show a negative income.

I make just over 250,00 , I feel very secure, but do not feel rich. Let's talk about Net incomes not the Gross number. I pay well over 100,000 dollars in taxes between state and federal and everything in between. How can anyone say I do not pay my fair share. Yes I feel secure because I save money so I am not dependent on anyone else, I invest my money that keeps the capital in this country flowing and spend my money that keeps the capitalist wheel turning. I do not expect many people to have empathy for me but their is a big gap between me and the John Kerrys and warren buffets of this world. Again About Half of my income goes to taxes. This tax code is used to bottle up the middle and upper middle class as well as the lowest incomes of the so called rich catagory.

John McCain doesn't consider you rich unless you earn 5 million dollars,!!!!! So ,to McCain if you make $250,000 then you are poor. Talk about living in another world!!!

Regardless of how much you make, the important thing is your taxation. We should be taxed on spending our money and not making it. if we are to be taxed on our income then the fair thing would be a flat tax for everyone, less than 15% and increase the sales tax across the board to make up for the differences.

I think some of you have it wrong. From what I hear the DEMS want to role back the Bush tax cuts for individuals making over 250K to what they were during the Clinto days. Spouting that the Dems will raise taxes is untrue. Last I remember, most people did pretty well during the Clinto years. The first thing most want to do is curb spending by cutting food programs to kids in pre-K, when they should be curbing spending on this ridiculus war we are fighting in Iraq. This from a well educated veteran who certainly understands world politics and National Security issues.

For Nola Mike: First, you should consider yourself rich indeed if you have four children that are happy and healthy. You have a home, and a job. That in itself is a rich thing. I am a hardworking single mother with two years. I make about $28000 a year and have just bought a single wide trailer for myself and my children. While I live in an area where I am considered as making good money, I consider myself the richest woman in the world as i have a home and children. while I can't afford the luxury of putting my boys in sports, I was able to get them a dog this year. Go Me!!! I hope that all of you can see what is truly important in life and it isn't the bottom line.

To the people who name off all their bills and say there not rich. atleast you can AFFORD all the stuff that you just named off. Lets here from the people who make 50k a year and can't afford all the as you would call them little luxuries like sending their kids to private schools and dance lessons, the "occasional" concert or movie. Lets here them name their bills and i guarentee you after 3 they are officially in debt with the money they make. "aww man i only have 17k a year to do w/e i want with it. I know families that would kill to have 17k to pay off there debts. So walk a mile in the real poor peoples shoes before you go complaining about your 17k of disposable income a year.