He is quoted in today's LA times:
"The problem with this [Obama's plan to cut back on the mortgage interest deduction for those earning more than $250k] is households earning more than $250,000 in New York or California may not be what we call wealthy."
According to the Census, median household income in California is about 60K (in 2007), and in LA County is about 53K. If 4-5 times median income is not sufficient to be deemed wealthy, at what point does a household become wealthy?
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I thought "wealthy" usually started at about 25% more than you make, whatever it is you make.
We can always just adjust brackets for median income or for CPI in a given area. That is, if you want to make the tax calculation more complicated. Tho perhaps we are reaching the point where we can just make everyone file online...
I make about 220k in CA. If I'm wealthy, I can't imagine how the median makes it. People are insane with the leverage and spending out here. It is unreal. I can't and won't compete. I'll live poor and have lots of saving rather then compete with people acting insane.
Wealth and income are two different things and should not be confused. Many high earners are not wealthy as they do not have sufficient assets to qualify them as "wealthy." My dad put it succinctly to me many years ago "Wealthy ain't makin' money- wealthy is keepin' money."
What is wealthy? It certainly is not $250k, especially in CA or NY. I read an article a while back pointing out that the big “jump” in high income households coincides with the entrance of women into the professional workforce. Assume that two grad students, meet, get married, and go to work. If you use the household figure, this couple will be considered “wealthy.” Even if they each have $150k in student loans, not to mention the years they invested in their educations. This whole “wealthy” business is nonsense. If you want to peg it, peg it at $1 million or so, but then adjust for inflation. But the number is really beside the point, we already have a progressive tax system, and those who work hard to better themselves already pay far more than their share.
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