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For $150,000 gross, your effective tax rate is 23.59% leaving you with $114,706
For $70,000 gross, your effective tax rate is 19.19% leaving you with $56,570
Yeah. Not much difference there.
After doing the long form and all the deductions and money maneuvering that I did in 2013 and the years before, I'm only paying $4800 Fed and State. Not every one can be a expert on taxes, but the point of my posting is that every one needs to be. If you just do your taxes and not study the rules a regulations then you can be losing thousands of dollars a year.
If you reread my post you will understand that my the taxes liabilities are just a portion of the non discretionary totals. Just to add more to my other post, it took years to put myself into my current tax and expense situation. I don't stumble into the year hoping that I can keep my taxes low.
I make just over $175k and wife stays home to raise our 3 kids. It seems the last 3-4 years with more tax hike I'm working harder and not making any gains. We pay more taxes, higher insurance, higher expenses and not getting more with our money these days. I don't have 3 cars to maintain just 2 and send my kids to public school with no free lunches. Costs for just about everything has gone up, property taxes, and my wife can get a job but wouldn't do much good and end up going into daycare.
We cut back some of our expenses and delayed buying another car and focused on saving for the retirement and kid's college but nothing else is left for us to spend on to enjoy much. I think the government wants to know why the economy is still not doing well. Maybe because people like me just can't splurge on goods like people were doing in 2004.
If my salary jumps over to $200k I don't think it will make a big difference. Maybe one extra vacation a year and eat and dress better but no real big gains as taxes will eat 1/2 the gains while my work responsibilities will likely increase dramatically.
Which is leading me to think perhaps it's better to just make less and have less to use and less taxes to be paid. But there is no comfortable living number that is just about right in terms of living decently well and not being over taxed.
Well, let's see. You keep voting for politicians that pass collectivistic social programs like the Byzantine Dragon that is Obamacare. You keep voting for politicians that want to allow illegal aliens to get subsidized (BY YOU) education. You keep voting for politicians who regulate business out of existence. You keep electing politicians who knuckle under to militant old people who want eternal increases in benefits and free everything and don't give a damn who has to pay for it. You keep going to work, and keep keeping your mouth shut, and keep on paying, and paying, and paying, and keep electing more politicians who keep promising and intervening and interfering.
WHAT THE EFF DID YOU THINK WAS GOING TO HAPPEN?
The barns are filling with homecoming chickens, and they are going to roost, and take everything you ever thought you should have because you earned it. And you just need to shut up, because the have-nots have spoken, and you, my friend, are willing to keep trying, and that means you are nothing more than another neck to be bitten and drained. And in fact, since you make one hundred and seventy five grand, you are automatically disentitled from having any complaints at all. Just keep earning, and keep supplying the redistribution machine. Which, by the way, is only in the BEGINNING stages of construction.
Your free dentures and free Depends and free knee replacements are on order. I hope you enjoy them. Now stop complaining and get back to work. The "little guy" matters. Not you.
Last edited by Marc Paolella; 04-07-2014 at 03:18 PM..
$300 eating and $400 misc expenses (maybe, not sure what that is) is a lot IMO. Ok so you spend say $50K, let's say you net $100K (prob more) after taxes, that means you save $50K a year which isn't terrible and there's even fat to cut.
How is this engendering a feeling of just getting by?
I think the feeling maybe that I am being too frugal and not getting any satisfaction with my income and I don't want to splurge on one week vacation at the bahamas.
My misc expenses can be the lawn care that's starting up this month for about $125/month. Since my income is high my kids don't get to eat free school lunch like 80% of the kids in NYC are eating free school lunch because they only use their mother's income info to qualify for free school food.
School lunch for the kids are $90/month for 3 kids.
Well, let's see. You keep voting for politicians that pass collectivistic social programs like the Byzantine Dragon that is Obamacare. You keep voting for politicians that want to allow illegal aliens to get subsidized (BY YOU) education. You keep voting for politicians who regulate business out of existence. You keep electing politicians who knuckle under to militant old people who want eternal increases in benefits and free everything and don't give a damn who has to pay for it. You keep going to work, and keep keeping your mouth shut, and keep on paying, and paying, and paying, and keep electing more politicians who keep promising and intervening and interfering.
WHAT THE EFF DID YOU THINK WAS GOING TO HAPPEN?
The barns are filling with homecoming chickens, and they are going to roost, and take everything you ever thought you should have because you earned it. And you just need to shut up, because the have-nots have spoken, and you, my friend, are willing to keep trying, and that means you are nothing more than another neck to be bitten and drained. And in fact, since you make one hundred and seventy five grand, you are automatically disentitled from having any complaints at all. Just keep earning, and keep supplying the redistribution machine. Which, by the way, is only in the BEGINNING stages of construction.
Your free dentures and free Depends and free knee replacements are on order. I hope you enjoy them. Now stop complaining and get back to work. The "little guy" matters. Not you.
I think before the dems came to power I does feel like there is less taxes and less income redistribution. I think the end result today is that there are more people paying for others and you are either poor and get paid by the system or you have to be rich enough to park your money overseas. If not, majority of my income goes to taxes, heathcare premiums that are skyrocketing, and rise of cost of living.
Here's just an estimate breakdown of my monthly expenses:
Mortgage $2400
Utilities about $300 total (gas/electric/internet)
Wireless bill $120
Groceries - $400
Eating out - $300
Misc expenses - $400
Transportation to work - $300
About $4220/month.
$1500/month goes to 401K/Roth.
There are some misc expenses that pops out here and there even while being frugal and not spending a lot at the retail.
I just don't feel like I can get ahead unless I win at the stock market or go all in on an investment and have a solid 30% return.
Your mortgage is only $2400 a month in New York City? Wow, you mind trading places with me?
Your TOTAL expenses + 401K deduction are only 39% of your income. That's pretty reasonable. I don't know why you should be having any problems, unless you have other very large expenses and taxes.
By the way, yeah you should be saving and investing in the stock market as much as possible. It returned 30% in 2013.
I think the feeling maybe that I am being too frugal and not getting any satisfaction with my income and I don't want to splurge on one week vacation at the bahamas.
My misc expenses can be the lawn care that's starting up this month for about $125/month. Since my income is high my kids don't get to eat free school lunch like 80% of the kids in NYC are eating free school lunch because they only use their mother's income info to qualify for free school food.
School lunch for the kids are $90/month for 3 kids.
Why do you need lawn care? Can't you do it yourself? Plenty of people do it themselves. Stop blaming government, taxes, etc and realize there are areas in your spending you can definitely work on. Pull yourself up by your bootstraps like a true Republican.
You're one of the people Mr. Money Mustache refers to as complainypants people living in a volcano of wastefulness.
Sure, the two are not mutually exclusive. However, it is apparent that most people here don't know what it's like in New York City. There's a reason why people are fleeing it and to just say "why, it must be that they all stink financially" is rather silly, wouldn't you say?
What is silly is to lock yourself into a lifestyle where you have to spend every nickel just to live. It's not great surprise that "people are fleeing." You have to be a special kind of stupid to live like that. I certainly kept myself on a tight budget for many years, but was getting ahead every day, and am living a much better life now because of it. Anyone who is spending their whole income just to pay bills is doing it wrong.
This is exactly what OP was alluding to. Even with a decent income, he can't afford to eat out once a week. Who are you to say what the max somebody should go out and eat is? You would think somebody that makes $175k a year wouldn't have to worry about a night out. But the fact of the matter is that the upper middle class is picking up a huge amount of the tax burden and it isn't easy.
The OP is complaining about his burden from paying bills and taxes. Eating out can become pricey, especially in NYC. This is an easy area to cut back on. It's a luxury, not a necessity.
OP isn't lucky he has skills that are worth more than most make even after considering the cost of living in a non flyover coastal city. OP has made the mistake of living in NYC where growth isn't going to happen due to the tax structure which stifles growth.
OP move but chose where to wisely because it does cost to move. Pick a place with growth which will improve your lot in life
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