Investing - Theory, News & General • Is a 50% savings rate impossible with a middle-class income?

My pre-tax rule including 401K company contribution:

1/3 taxes + 1/3 savings +1/3 expenses

This must only happen in a very narrow band with specific instances.
Please help us out to understand what these might be ......in order to have a middle class income, but have taxes that equal 33% of that income?

This is mostly for upper middle class that can save 1 year of expenses ... don't take it too literally.

e.g. a couple earning 100k each, for a total of 200k HHI. 50k in taxes. 75k savings. 75k expenses. I think can be a bit tight but doable.

$50K in taxes on $200K is not 33%, it is 25%.
We have had taxes that were both above and below 33% of gross income - but not on a middle class income.
What current salary imposes a 33% total tax rate? Is that middle class today?

Statistics: Posted by CletusCaddy — Wed Aug 14, 2024 7:27 pm — Replies 126 — Views 4281