Who is rich?
After more than a year of arguing about the budget, the answer to that single question may be the answer to our economic woes.
As talks continue, House Speaker John Boehner has signaled that he might be willing to compromise on raising tax rates but only for top wage earners. The problem is, it’s hard to figure out what that means.
President Obama has suggested that tax increases should begin at what appears to be his definition of wealthy: those households earning more than $250,000 per year. That figure represents the so-called “2%”. In addition to tax rate increases, most of the President’s tax adjustments, including phaseouts for exemptions and deductions, tend to hover around that figure.
Speaker Boehner, however, thinks that number should be closer to $1 million. That figure would represent about .1% of taxpayers.
Whether the number lands at $250,000 or $1,000,000, any boost at the top would make a compromise by Speaker Boehner. He had initially indicated that he would not support any increase in raise. However, public opinion has suggested that most voters support raising rates at the top in order to prevent potential future financial damage to the economy.
If you’re trying to figure where you figure in that spectrum, statistically, you won’t be near the top. Median household income was $50,054 in 2011, a 1.5% decline from 2010 (downloads as a pdf). Since most folks fall under both of the proposals, it’s hard to gauge public opinion. So, I leave it to you guys: where’s the line? Who is rich?
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