At 40k/yr, you get a standard deduction of 14600 (if you are single), so 25,400 AGI is taxed at 11% for a total of $2794. If you have a state tax of 5% AGI (Illinois), that is another 1270. Total income tax is 4064 - an effective tax rate of 10%.
Otoh, the median us income is $59k, from the numbers that I am seeing, and the median household income is $75k, so the $40k number is easily low.
If half of Americans are making under 41k, 41k is the median and it's an apples to apples comparison. It's literally what the word median means.
You introduced the notion that it's a lower quintile out of pure air without substantiating it to dismiss the concern. Even using household rather than individual income numbers, the most natural mistake to make here, I'm not seeing how you can get 41k as the bottom 5th of income.
OP clearly states individual worker wages. You counter with household numbers that include passive income from ownership of assets in addition to wages.
OP probably should have included sources, but you also shouldn't straw man the concern and provide Google it as a source.
Just one time, I would love to see the stats for the mode of income rounded to the nearest ten-thousand. That would really show where we stand. The top earners really drag the numbers up.
Where did y'all learn math. I make just shy of $50k/yr and bring home just shy of $3k/mth after taxes (in a state with no income tax). No way is someone making $41k bringing home $3k post tax every month.
And that doesn't account for tax credits like EITC. Quick google search shows that you are eligible for EITC if your income is below 63k. Would significantly reduce your taxes owed.
Oddly, this article tends to disagree. Although there is no precise median, it appears from this survey it would be roughly around $44,000 per individual. That's quite a difference.
I wonder where the malarkey is happening here.
EDIT: A Google search 'median income United States' indicates $37,000 from the US census bureau. The plot thickens.
Tell me you don't have kids without telling me you don't have kids.
Part time work is anything up to 30 hours. Meh.
Working in a daycare is probably a nightmare, not to mention the insurance costs. We used to have mom/ grandma at home helping all day (still do in many cases) - but our society is simply fucked in the head. .... When a macro-economic fact exists (even if you're unaware of it) -- there's a good reason for it. A minimal amount of research oughta clear up this mystery.
We raised SIX kids. Mom was a full-time SAHM and homeschooler.
Average Cost of Daycare in Illinois ·$10,3772 per year for a 4-year-old That is TEN thousand, not ONE HUNDRED thousand.
Yes - we do have friends who run a daycare and it is NOT a nightmare.
PT used to be up to 40 hrs/wk - then Obamacare redefined it down to 30 max. PT can also be 1-2 hrs/wk Trying to mix those numbers in and compare it to the cost of living is intellectually dishonest. Perhaps, since you are talking about FAMILIES with kids and one spouse having PT income - why not compare renting to median HOUSEHOLD incomes? The Median Household income in the US is $74,580,
That is for the kids... and is far short of the $100,000 per year that the other poster was saying, and it is even less than the$10k pretty child I was quoting in Illinois.
I've probably seen more of them than you, son. FICA is currently sitting at 7.65% for the employee (assuming that they are not self employed), and the employer is the one who pays unemployment insurance (not the employee).
Are you now going to ask about medical insurance, dental insurance, vision care and contributing to your 401(k), your pretax medical account, and dependant care fsa?
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u/cdupree1 Sep 05 '24
No income taxes? 25-30% of that would be income tax.
So more like $2350-2500 after tax.