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Superman4 on 25 May 2017
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SpokenTruth said:
Superman4 said:

I get what you are saying however I dont agree with it.  On a percentage basis everyone should be taxed the same. If you make more you pay more just based on the percentage. Generally people who make more spend more and have higher costs of living, a poor person isnt goping to have a 5k per month mortgage or a $600 month car payment. They will live within their means. Rent or mortgage will be lower and car/transportation will be lower.  Most people live to their means and dont have savings, pay check to pay check is pretty normal unluss you are very rich. 100K a year for a 5 person houshold is not a lot of money. Even if both parents work and make 60K per year or 120K combined, having a house payment and 1 or two car payments would make it hard to save anything unless they ate top ramen every day and didnt have TV or internet. Increasing the tax burden based on income puts the middle class in the worst situation of the three especially if you are at the bottom of the top percentage. You will end up paying the most tax even though you barely met the tax bracket. Keep the tax rate the same for everyone, stop all write off of any kind, stop requiring people to buy insurance of any kind and let people spend their money how they please. It sounds great to have the rich fund the poor until you realize that if you are the rich person you are the one working while the poor person is getting a free ride. It may not be a nice ride but a lot of people in that situatiuon choose to stay their because they dont have to work.

I'm sorry but that's a load of bullshit unless you live in San Fransisco or Manhattan.

$120,000 leaves you ~$78,000 after taxes (less if you have state income taxes).   That gives you over $7,200 per month. 

$2000 for mortgage ($450k @3.75% for 30 yrs).
$1000 per month for 2 brand new cars.

That's $4,200 per month left.  That damn sure isn't Ramen every night and no TV/Internet.

Oh, and you cannot collect "free ride" benefits forever.  They have limits that require you to work to keep receiving them.

A 450K mortgage with nothing down is $3070 per month with taxes and insurance. Not to mention your $7200 per month number equates to $86,400 per year not $78,000.  So at $78,000 per year you would bring home $6500 per month. Those two cars will both need full coverage insurance since they are financed, insurance varies but $250 per month for two cars with full coverave and average deductables is on the low side. You also need gas for those cars, I'll be generous and say $200 per month for both so $100 each. Electricity, gas, water and garbage all need to be paid for the house, I'll lump those all together and say $400 a month. So your total in reality for just those items is $3920. Lets say you are like me and have a family of 5, $600 a month on food is pretty normal and doesnt include eating out. That brings you to $4520 per month for the essentials.  That leaves you in your scenario with $1980 left over per month for whatever else you may need. This also isnt including state taxes so if you are in a state like California with state taxes you can take an additional $15,600 off of your $78000 number, so $62,400 is your take home pay. That gives you $5,200 per month to work on.  That leaves you with $680 per month of spending money. That has to provide clothing, pay car registration, fix anything that may break around the house, car repairs and maintenance etc. 

 

So again, $120K is not a lot of money when you actually add up everything and not just the initial house payment and car payment. A lot more is required when owning those items and a lot more is needed to live on.