Wednesday, January 30, 2013

How Law Affects Real People...

... as portrayed by the Wall Street Journal.  The graphics below were printed in the WSJ ostensibly to make the effects of the recent tax legislation hit home. For instance, the single mom earning merely 7x the median income of a woman in the US will see a tax increase equal to her annual dry cleaning bill. The young single woman earning only 6x the US median will have to give up at least one designer suit purchase this year.  Hardest hit is the family with 4 kids struggling to survive with only 13x the median family income. Despite their $180,000 in investment income, they still have to work to get by. But they may have to downgrade their annual commuting vehicle purchase from the Mercedes SUV to the Lexus this year. (Look how they have to clutch their children to them to avoid the harsh critical stares from their private school classmates as they drive up to the school in that thing.)  And what about the elderly on fixed incomes? The retired couple with $52,000/year in investment income and another $130,000 from somewhere else can rest easy. The tax hike is zero. Papa can still afford a new dresser full of cotton sweaters to tie around his neck.

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