$250,000 part of the “elite”: Think again, It’s really about the ZIP code.

In fairness, both candidates have made comments regarding no cuts for households earning less than either $200,000 or $250,000 (depending on candidate) in the recent tax plan.  I’ve seen a host of comments regarding that particular line in the sand.  And then I started to wonder. I randomly picked 2 professions: A RN (with a BSN) and an accountant to make up the 2 income household.  According to the March 27, 2012 data release from the Bureau of Labor Statistics, the mean accountant salary in the U.S. runs $70,130 per year.  The median annual base salary for a registered nurse in the United States is at $65,918.  This household would have a base salary for of $136,048.  Both are professional jobs that require at least a 4 year college degree.  Here are some city by city comparisons:

I used Des Moines, IA as the point of comparison: it’s fairly economically stable, Midwestern city.

To maintain the same standard of living that $136,048 would create in Des Moines, the mythical couple would need to make:

$180,527: Phoenix, AZ

$214,251:  Los Angeles, CA

$217,407:  Oakland, CA (live), SF (work)

$130,345: Birmingham, AL

$175,124:  Anchorage, AK

$161,690: Denver, CO

$237,850: Washington, DC

$142,879: Jacksonville, FL

$131,401: Columbus, GA

$175,770:  Chicago, IL

$129,273: Indianapolis, IN

$132,985: Kansas City, KS

$139,669: New Orleans, LA

$162,577: Minneapolis/St. Paul

$177,962: Baltimore, MD

$213,582: Boston, MA

$187,325: Hartford, CT

$132,839: Omaha, NE

$146,206: Albuquerque, NM

$273,400: New York, NY (all boroughs)

$134,666: Tulsa, OK

$145,961: Pittsburgh, PA

$140,326: Roanoke, VA

$254,583: Honolulu, HI

There is a real danger of a line in the sand approach to tax based on income without matrices to the cost of living factor by zip code.  Randomly picking 2 “average” jobs for a family and plugging them into the salary.com conversion shows a wide array of what the income needed to maintain the same standard of living based on region for the same job.  We can’t find relief for the vanishing middle class buy an arbitrary line.  Part of the alleged tax reform has to include an actualization of real income by region.

Advertisements

Tags: , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: