Absurd Article

[mowgil]

I can't decide if this is funny, sickening, or both.

http://www.bloomberg.com/news/2014-04-15/why-rich-people-feel-poor.html

[Travis]

Just....wow.  They went full retard on what they think this hypothetical couple needs to live and how we should feel sorry for them.  So this couple "needs" to save $1 million for their two kids to go to college? Are we assuming both kids are going to be doctors just because their parents are in the 1%?  Are the parents required to spend every dime they make?  There are so many fallacies and leaps of logic here to make your head spin.

[RapmasterD]

I actually think most of the article is factually correct -- you need to trust me on this one.....ahem!

But the last two paragraphs are unnecessary, and yes, a bit sickening. The basic premise -- in many other countries you'll pay marginally more (pun intended) and get a much larger safety net. But yes, so the F what...we live here. And if you want to whine, then see ya!!

FYI--We have a 3.5 year old daughter. I've estimated a four year program at a private college will cost ~$600,000. And I'm therefore hoping she either goes to a CA college and/or that there's a tremendous disintermediation a-comin' in education. It seems this disintermediation is on its way....I'm a product of a state university and have done OK, or so my parole officer tells me.

HOLD ON! I missed the title of the article. THAT is f'ing ridiculous. My wife and I feel bathed in ABUNDANCE! And freakin' blessed. "Poor?" NONSENSE!

[brewer12345]

I think the point was more how little US taxpayers get for their money by way of social services/safety net/college tuition.  Having been up there in the tax brackets, it does make you question why you are working so hard to hand over so much and receive so little in return.

[Guses]

The article talks about marginal tax rate which is not appropriate in the context that the article is covering.

What total percentage is the couple paying in taxes?

I looked it up on wikipedia and a couple earning 450K would pay about 26-28% effective on that amount. They should have compared the effective tax rate on the graph instead of the top marginal bracket.


@brewer what do you mean by "receive so little in return"?

They live in a country that alowed them to reach an annual rate of pay exceeding 200,000$ per person per year. That is crazy income. They certainly would not have been able to pull this off without the infrastructure, law framework, security, health care, education that have been provided to them by their country.

[brewer12345]

@brewer what do you mean by "receive so little in return"?

They live in a country that alowed them to reach an annual rate of pay exceeding 200,000$ per person per year. That is crazy income. They certainly would not have been able to pull this off without the infrastructure, law framework, security, health care, education that have been provided to them by their country.

Of course those making 50k get the same stuff.  In a philosophical sense, I get what you are saying and somewhat agree.  However, it is hard to stomach when you are killing yourself to generate that income and getting cornholed by the tax code for your efforts.

[sirdoug007]

Talk about first world problems! 

They use a lot of little tricks to inflate costs for everything making it sound like you need $10 million to make it.

-They are not paying $1MM for college this year.  Those costs START 18 years from now.  In today's dollars it's a total of around half that.  You also could consider sending the twins to a state school (God Forbid!).  The reason they get no financial aid is that they, of all people, should be able to afford it!
-$220,000 per person outside of medicare is over the course of your life, not money you need the day you retire.
-$260,000 per person for three years in nursing home is also not needed until the end of your life, many years from today.

I love this part: "So take a moment to recognize the sacrifice of high-paid professionals. They can pay an effective tax rate approaching 50 percent -- far more than an idle heir pays on his investment income -- and still must worry about a job loss or health emergency leaving them strapped."

How about a moment to recognize the  median household who has to try to pay for this stuff on $51k/year!