Regarding the 60,000/year has no money folks:
Seems to me that you’ve described somebody who has it pretty good. First of all, this fellow deducts more from his taxable income than many people make in a year:
6000 Church
4008 IRA
4000 Interest on mortgage (estimate)
5000 State + local taxes (Atlanta area, source: 1999 New York Times Almanac)
Total: $19,008 in tax deductable expenses. This is conservative, I think. Many families do not even make this amount. Minimum wage is a paltry $5.15/hour. (405.1550=10,712/year. Double this for a 2 income households) These are the people who are getting hit with a huge tax burden, not 60 grand folks.
This guy saves 334/month? $4000/year? Gives $6,000/year to charity? This seems to be $10,000 in disposable income. If there truly are people who give more money to their church than they pay for their car, it is no wonder Jim and Tammy Faye lived so well. That is a HUGE self imposed expense.
I also thought that you were trying to prove that a $60,000/year wage earner can’t afford adequate housing. Perhaps my standards are lower than those of the average person, but a $120,000 house sounds like adequate shelter. Maybe if this person saves his pennies he can afford to put another wing on the house.
Please explain to folks making minimum wage with no health care, no car, and a cheap apartment how hard the fellow making $60,000 has it.
Want a sensible tax break proposal?: Raise the top income for the 15% bracket from $21,000 to $28,100. (reduce accordingly for joint filing). EVERY taxpayer making over $28,100 in taxable income saves $910.00 and all those making up $21,000 to $28,100 saves accordingly.
Another: Lower the bottom rate from 15% to 12%, lower the 28% to 25%. Anyone making $22,100 saves $663. Anyone making $53,500 and over saves $1,429 + $663= $2,092.50. People often forget that a tax break for lower incomes is also a break for higher incomes. Therefore, a tax break like the 10% proposed which cuts all rates by 10% actually gives a much larger cut to higher income groups than to the lower income groups who actually need it because it becomes cumulative.
Also: Lower the Social Security tax from 14% to 10% and get rid of the cap.
“Shoplifting is a victimless crime. Like punching someone in the dark.” -Nelson Muntz.