Obama Tax Cut for Incomes < $150k
by miker2008, Wed Jun 11, 2008 at 11:26:30 AM EDT
This recent article
States that Obama wants:
and a tax cut for Americans making less than $150,000 a year -- to be financed with tax increases on those making more than $150,000 a year.
I don't know about the rest of you guys, but this latte-sipping liberal living in CA thinks the $150k dividing line is WAY too low. Median house price in my county is $670k, which is $3500/month mortgage payment assuming you put $100k down and financed $570k at 6% for 30 years. So ... $42k/year mortgage plus $9k/year property taxes and $2k/year insurance. That comes to $53k/year just to 'own' a median priced house, which in this area will be a 2-3 BR with 1 bath, a square footage of maybe 1200 sf, on a 50' x 100' lot. If your goal is to pay 1/3 of your take-home pay on housing (a typical recommendation) then you need to be taking home $159k per year which means a gross yearly income of $220k (assuming 28% tax bracket). Now, to be more in line with reality, most Californians actually pay %40 of their take-home pay on housing. That comes to a gross income of $165k/year needed (assuming 20% tax bracket). So in CA you're paying 40% of your income for a tiny house, the highest food and fuel prices in the nation ($4.65/gallon for gas, $4.20/gallon for propane), and Obama is going to raise your income tax? Not an appealing prospect.
McCain, on the other hand, is going to abolish the alternative minimum tax. I'm barely keeping up with the mortgage on my teensy house, but the AMT gets me every year.