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View Diary: $250,000 Upper limit (32 comments)

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  •  the other thing (6+ / 0-)

    I'm not sure people understand is that 250k isn't gross income, it's taxable income.  So right off the bat there is the $14,800 exemption for a family of four.  Then there is the deduction for mortgage interest, state taxes, etc.  I think you'll find on a gross income basis we are talking closer to $300k-350k for a typical family of four.  Suddenly 2 spouses making $100k each aren't really that close to the limit[you'd need a million plus in a non-retirement investment account to generate enough to reach the limit, and aren't most of their non-retirement assets tied up in their home which they can barely afford].

    •  When the mortgage interest... (5+ / 0-)
      Recommended by:
      Eric K, phonegery, ColoTim, whizdom, PeterHug

      ...and state tax deductions kick in, many high-wage places on the coast turn into moderate-wage places.

      That said, in NYC we choose to pay high taxes because we like good infrastructure that works. Should other Americans subsidize this choice?

      In many suburbs, the people choose to pay high taxes because they want good schools. Should other Americans subsidize this choice, also?

      These are long-term questions that we should think about after the Fiscal Cliff crisis.

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