• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

The Myth of the Middle Class

As part of his proposed health care reform plan, Obama envisions two new tax increases: one on non-wage income for individuals making over $200,000 a year and families making over $250,000 a year; and another, an additional Medicare assessment, on earned income for the same group. The proposal takes on so-called “high-earning households” as part of Obama’s promise not to increase taxes on the middle class. But the idea that someone earning $199,000 is “middle class” remains laughable to many Americans and to economists.

The political reality is that nearly 80 percent of Americans self-identify as “middle class,” 2 percent identify as “upper class” and 18 percent identify as “lower class.” Only the latter total is likely accurate.

Standard statistical practice is to divide the country into five groups, or quintiles, each representing 20 percent of the population. Median household income in the United States in 2008 was $52,029, which fits squarely in the 3rd quintile, where households range in income from $39,000-$62,725. That’s what the statistical middle class really looks like. If one wanted to encompass the middle of the entire range — which is to say the middle 60 percent of the households in America, including the “lower middle” and “upper middle” classes — the range of middle class could be expanded to those households earning between $20,000 and $100,240 every year. There’s a lot of daylight between the highest earning households in the bottom 80 percent of the population, and individuals earning $200,000 year.

In fact, only 5 percent of the households in America earn more than $180,000 to begin with, so “high earners” comprise something less than 5 percent of the country. Interestingly enough, rank-and-file members of Congress, senators included, will make $174,000 in 2010, putting them just outside the top 5 percent of earners in this country if they aren’t married or their spouses don’t work. The president earns $400,000 a year, meaning he makes more than $100,000 more than the average salary of the top 5 percent of Americans.

By those standards, people making $199,000 a year probably do seem somewhat middle class. That, however, doesn’t mean that they are.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.