Saturday, August 31, 2013
Who defines who Middle Class is?
Now let us see who the middle class are and who defines one. Middle class is defined by the economists and most of the people want to identify as such. They don’t want to come off as some rich family and get ridiculed and spurned by other families. They like to fit in and would anything to stay in this particular category even if they are making six figure salaries and more. But with the expenses and high cost of living everywhere even a person who is making low six figures feel like he is still in the middle class. Let me break this down, I live near New York city and work there and if you happen to live there you pay the city income tax, state income tax and then you have to pay the Federal income. On top of these whatever remains you pay additional tax on it. You pay sales tax on when you buy things and you pay the property tax if you own a house and also if you happen to park your car in a garage or even on the street you pay additional tax. When you drive a car you pay the gas tax on it and then the rest of your so called discretionary income goes to utilities and other assorted expenses. So even if you happen to be lucky enough to earn more than your 100k, you just get 60k after paying your city, state and federal tax and whatever remains you pay additional tax on things which reduces your income to the level of paycheck to paycheck.