General Discussion

FreeJoe

(1,039 posts)

124. Income Averaging

Fri Dec 28, 2012, 09:33 PM

Dec 2012

I would also add something to tax law so that people that have one year windfalls could spread that income over three years. I left a job once and had to exercise a bunch of stock options. It spiked my income tremendously that year, but it also had me taxed in a much higher bracket. Because our tax system isn't very progressive, it didn't really make much of a difference. If we had a fairer, more progressive tax system, it would have been much more painful and may have been enough to keep my from changing jobs. I think that people in once-in-a-lifetime situations like that should have some ability to spread that income across multiple years so that they get taxed in a way more commensurate with their average income rather than that single year spike.

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$20,833.00 per month???? [View all] Heather MC Dec 2012 OP

I really have no idea. With two grad degrees I'd need three jobs to hit 250K NYC_SKP Dec 2012 #1

I know people who make 250,000K per year, they live on golf courses with elevators Heather MC Dec 2012 #6

It really depends where in the country they are taught_me_patience Dec 2012 #18

Then you are doing something wrong and you are decidedly NOT middle class... Luminous Animal Dec 2012 #23

In one of those cities an experienced firefighter and a nurse, pnwmom Dec 2012 #74

They might consider themselves middle class but they'd be in the 20% of the SF population Luminous Animal Dec 2012 #75

"Class" isn't a term strictly related to income, IMO. People who have an income in that range pnwmom Dec 2012 #101

Upper Middle Class, perhaps, with that as a family income in a high cost city Tom Rinaldo Dec 2012 #87

I agree. We shouldn't be making cuts that hurt people on the other end. n/t pnwmom Dec 2012 #96

Subaru and BMW are high-end cars intheflow Dec 2012 #65

Subarus are high end cars? It depends. I live in Subaru-ville where yes, there are new ones uppityperson Dec 2012 #70

This message was self-deleted by its author intheflow Dec 2012 #88

Subaru? lumberjack_jeff Dec 2012 #95

W WA, we have our Subaru subculture, don't we? If not a volvo, a subaru. uppityperson Dec 2012 #105

I was looking for an older model Honda nolabels Dec 2012 #107

I am on my 3rd Subaru. pangaia Dec 2012 #154

irregardless is not a word datasuspect Dec 2012 #89

Meh. intheflow Dec 2012 #90

it's a free country datasuspect Dec 2012 #91

I'll consider myself courteously warned, then. intheflow Dec 2012 #108

It's a shame, too, because Beemers are pieces of crap. Fawke Em Dec 2012 #102

yes - solid upper middle class taught_me_patience Dec 2012 #121

professional class - accountants, physicians, engineers, geologists, elehhhhna Dec 2012 #10

Do you have any data? Two income households. DINKS. I'm single... I'd need two times the income. NYC_SKP Dec 2012 #11

I have a phd and a great job... a la izquierda Dec 2012 #2

My DH has a Masters Degree a full time job in the Military and several part time jobs one as a Heather MC Dec 2012 #4

$20,833.00 per month!!! my gosh trueblue2007 Dec 2012 #3

The 2003 Median Income of US households was $45,000. Coyotl Dec 2012 #52

It's interesting how there's a dip in the 75 - 100k range CJCRANE Dec 2012 #80

This chart shows where the middle class ends with that dip, in my view. Coyotl Dec 2012 #86

I get $18000 a year on SS and we hear the chained CPI is not doc03 Dec 2012 #53

Who said that? Nt abelenkpe Dec 2012 #5

Obama and Boehner are going back and forth between 250,000 and 1 million as the cutcoff point robinlynne Dec 2012 #9

Crummy bargain. We really need to win back the house. nt abelenkpe Dec 2012 #106

that's a lot of money, imo shanti Dec 2012 #7

at least the tribe shares the money with its roll members lunasun Dec 2012 #15

I'm with you. robinlynne Dec 2012 #8

they've settled on $400,000? hfojvt Dec 2012 #12

Only $16,666.00 per month, that's pennies how could anyone live off less than $16,666 per month? Heather MC Dec 2012 #13

$200k is not much in expensive cities like NYC or Los Angeles taught_me_patience Dec 2012 #17

That's the rich people's way of saying "get lost". It does not mean it isn't plenty of money. JVS Dec 2012 #27

I live in NYC jade3000 Dec 2012 #31

That is not what that person said. nt stevenleser Dec 2012 #112

The highest average income (by area) per household in LA is $141,000.... Luminous Animal Dec 2012 #33

the median income is $79,100 (from your 2nd link) hfojvt Dec 2012 #72

that;s Crap, most people in NYC and LA don't have anything close to 200k, it IS enough JI7 Dec 2012 #36

It's true that you can't be a yuppie at less than those prices... Lydia Leftcoast Dec 2012 #49

Sure you can. Most professions make less than $250K/yr. Nurses, IT, Accountants, etc make less. stevenleser Dec 2012 #147

Hahahaha. ForgoTheConsequence Dec 2012 #55

I'm going to say it. Occulus Dec 2012 #60

I made half that in LA and retired in 15 years. What I didn't do was pretend Egalitarian Thug Dec 2012 #78

Sure it is. quakerboy Dec 2012 #84

Suitcases and U-hauls are cheap. n/t lumberjack_jeff Dec 2012 #94

Exactly. I hate when people that live in inexpensive locations attempt to make values bluestate10 Dec 2012 #149

And the proposed increase in taxes is levied on taxable income (after deductions and execemptions) Luminous Animal Dec 2012 #14

exactly so really for 250k it's about at 300k, and or 400k it's really 450K Heather MC Dec 2012 #21

Great thread. Demo_Chris Dec 2012 #16

I love it when people making that much try to act like they're struggling RedCappedBandit Dec 2012 #19

They are just broke at another level Heather MC Dec 2012 #28

By definition, middle class means you are NOT struggling. Obviously at the high end of that you stevenleser Dec 2012 #115

For clarification, my post was definitely not directed at any particular DUer RedCappedBandit Dec 2012 #117

20k gets burned up real fast in expensive cities and high tax states taught_me_patience Dec 2012 #20

I live in the real world, I live in a very expensive area. I know the numbers thanks Heather MC Dec 2012 #22

Yep. I live in San Francisco and most of the people I know make between $50,000 - $80,000 Luminous Animal Dec 2012 #25

$80,000 in income, and they can only manage? So $80k in San Fran isn't very much? Honeycombe8 Dec 2012 #40

I'd say $50K is working class. Rent for a 2 bedroom apartment is over $3000 a month. Luminous Animal Dec 2012 #51

Well, you're the one who stated 250k households live on golf courses taught_me_patience Dec 2012 #26

I said I know people there's a difference in making up something and knowing facts Heather MC Dec 2012 #38

I know a few areas with nice homes on nice golf courses, with home costs in the mid to high $200s. Incitatus Dec 2012 #45

Sorry, but if you can't scrape by on $5000 per week, then you're an absolute failure Orrex Dec 2012 #50

I didn't say you can't make it taught_me_patience Dec 2012 #109

Depends on one's perspective, I suppose Orrex Dec 2012 #126

You are attacking a point that no one made. nt stevenleser Dec 2012 #116

I was addressing reply #20 Orrex Dec 2012 #125

No, it hasnt, as the poster of #20 explained. No one is saying they cant make it on $250K/yr stevenleser Dec 2012 #127

kind of the same point, then Orrex Dec 2012 #130

Its not the same point at all. I think $250K/yr is definitely middle class as I noted in this post.. stevenleser Dec 2012 #141

I have a suggestion: cut the $250K person's annual income by $200K Orrex Dec 2012 #143

You keep creating straw men and are deluded into thinking that they are logical points. They are not stevenleser Dec 2012 #145

No, you're offering up a comparison that has no meaning Orrex Dec 2012 #150

You are now arguing with yourself about your 80% straw man. My comparison is EXACTLY the point stevenleser Dec 2012 #152

Go on with your bad self Orrex Dec 2012 #155

Maybe this will help you understand. stevenleser Dec 2012 #158

You're still arguing that we should subsidize the $250K lifestyle Orrex Dec 2012 #160

No, that is just your latest strawman. I never remotely said any such thing. nt stevenleser Dec 2012 #162

Then answer the question Orrex Dec 2012 #163

"More in common" Chathamization Dec 2012 #156

The bottom threshold for top 1% of wealth is $8.4 million stevenleser Dec 2012 #157

So you're moving the goal posts Chathamization Dec 2012 #165

Sorry, no. Comparison of what is middle class or not IS the goal according to the OP. nt stevenleser Dec 2012 #166

Yes, and comparisons show Chathamization Dec 2012 #167

Yes please. ForgoTheConsequence Dec 2012 #56

Here you go taught_me_patience Dec 2012 #119

First mistake, buying a $1.2M home. Luminous Animal Dec 2012 #128

Looking at this Chathamization Dec 2012 #135

OK .... I would like .... Trajan Dec 2012 #59

... progressoid Dec 2012 #73

good grief treestar Dec 2012 #82

I would like the numbers. quakerboy Dec 2012 #85

see my post #119 taught_me_patience Dec 2012 #120

yes, in Mitt Romney's neighborhood Enrique Dec 2012 #99

It is not the starting point but the end point.... Sekhmets Daughter Dec 2012 #24

The increase is on taxable income after deductions and exemptions. A small business owner with $200K Luminous Animal Dec 2012 #29

No one said he wasn't....n/t Sekhmets Daughter Dec 2012 #30

I wasn't implying that you were but I do question your assertion that 97% of small business owners Luminous Animal Dec 2012 #34

Awkward phrasing on my part.... Sekhmets Daughter Dec 2012 #97

I would call that upper middle class. aikoaiko Dec 2012 #32

Do you need any more proof? kentuck Dec 2012 #35

There's a lower, middle, and upper middle class. Honeycombe8 Dec 2012 #37

This is 250K adjusted Gross Income Heather MC Dec 2012 #42

The tax increase for them is ONLY for the amount OVER that income... Honeycombe8 Dec 2012 #57

Think about it, it is a progressive tax rate and does make sense... Luminous Animal Dec 2012 #67

No, we don't. Maybe that's the basis for the tax rate for a certain income.... Honeycombe8 Dec 2012 #93

Actually, you are wrong. If you fall in the 25% bracket, it means that you earn enough that coalition_unwilling Dec 2012 #103

Please but you are wrong. Please see the worksheet below. Luminous Animal Dec 2012 #110

Your examples prove his point quakerboy Dec 2012 #131

Um no... Luminous Animal Dec 2012 #132

My appologies. quakerboy Dec 2012 #137

No problem :) Luminous Animal Dec 2012 #138

Well, I looked it up, and I was wrong. $250k does seem to be above "middle class" income levels. Honeycombe8 Dec 2012 #61

That is disgusting Fearless Dec 2012 #39

The $250k figure is not the amt cleared. It's the gross income. nt Honeycombe8 Dec 2012 #41

Yes I know. Fearless Dec 2012 #48

Who considers the starting point of middle class to be $250K Incitatus Dec 2012 #43

250K is considered the end of Middle Class and the start of the rich class Heather MC Dec 2012 #44

I think that there's so much dispute here about $250k still being middle class indicates that it is Incitatus Dec 2012 #47

That is not the middle class threshold, it is way above it. Coyotl Dec 2012 #46

It's a system of enforced poverty that was designed that way...... DeSwiss Dec 2012 #54

This all started during the Reagan and then the Bush years...with education cuts. Honeycombe8 Dec 2012 #58

Reagan/Bush was an adjustment. This system goes back much further. n/t DeSwiss Dec 2012 #66

interesting fact. federal education spending was not cut under those guys mostlyconfused Dec 2012 #71

I'm old enuf to remember Bush Sr. cutting college grants. Honeycombe8 Dec 2012 #92

those are in the Dept of Ed budget, and went up under Bush Sr. mostlyconfused Dec 2012 #104

Sorry...you must be wrong. I REMEMBER EXACTLY Bush on tv announcing the CUTS to college grants.... Honeycombe8 Dec 2012 #111

No. What you are suggesting is the Dept of Education's own numbers are wrong mostlyconfused Dec 2012 #136

Because a program is cut does not mean the dollar amount goes down, correct? Honeycombe8 Dec 2012 #140

middle class kardonb Dec 2012 #62

Not really there was no room for extra Heather MC Dec 2012 #68

Top 2% starts at $250,000 ErikJ Dec 2012 #63

Poverty is classified by income, not percent. Whatever percent makes below X amount is considered stevenleser Dec 2012 #114

I haven't seen 20K in the last 5 years combined DotGone Dec 2012 #64

Warped sense of reality. moondust Dec 2012 #69

"Middle Class" is a range that (according to the gov't) tops out at $250M. napi21 Dec 2012 #76

please link some document that says the government has this definition of middle class. FYI: HiPointDem Dec 2012 #77

I think the top quintile is not "middle class." David__77 Dec 2012 #79

Goes to show how few people are really affected treestar Dec 2012 #81

The fair Compromise on the fiscal Cliff Resonance_Chamber Dec 2012 #83

"Middle Income" means something. "Middle Class" is an arbitrary bullshit distinction. lumberjack_jeff Dec 2012 #98

The top 1% are the only ones who have made a killing in the last 30-40 years. And at the expense of stevenleser Dec 2012 #142

2/3 of households who make more than $250,000 a year are 1 percenters. lumberjack_jeff Dec 2012 #151

It's not a percentage/percentile thing, it's a "What is their life like" thing. Thats my point. stevenleser Dec 2012 #153

Almost none... which makes it easy for me to demand more taxes from "them". lumberjack_jeff Dec 2012 #164

Spam deleted by hunter (MIR Team) veterancrozo658 Dec 2012 #100

Household making $250K/yr still has more in common with one making $50K than a 1 percenter household stevenleser Dec 2012 #113

They make in a day, more than I make in a week RedCappedBandit Dec 2012 #118

I think because the Cost of Living in NYC, DC, Chicago is so high... WCGreen Dec 2012 #122

the median income is 80,000 dollars mostly in those cities nowhere near 250 Km uponit7771 Dec 2012 #134

That's the Median which, if I remember my math, is the exact middle point between WCGreen Dec 2012 #139

Upper Middle Class? FreeJoe Dec 2012 #123

Income Averaging FreeJoe Dec 2012 #124

Jesus, I know quite a few people who do not make that a YEAR. MADem Dec 2012 #129

Here is a good quick chart for percentiles... kentuck Dec 2012 #133

Actually, I think it' worse than that... Jeff In Milwaukee Dec 2012 #144

I've Lived in NYC, SF, and Los Angeles Yavin4 Dec 2012 #146

See my #113 nt stevenleser Dec 2012 #148

Yeah, but that's after taxes, and private school, and the vacation fund, and the three car payments killbotfactory Dec 2012 #159

And their dancing horses Orrex Dec 2012 #161