Let me revise my calculations based on the understanding that EACH INDIVIDUAL ( Spouse and Dependent Kids) get a $12,500 exemption.
Let’s calculate the taxes for a family of 4 (2 children), the average household income of which is $50,000, with a monthly mortgage interest of $15000/yr and living in say, Ohio ( where average state and local taxes are about 10%). Assuming the family is generous and gives $500 to the church or charity a year. Maybe the family invests in a dividend bearing stock which gives $600 a year
YOUR INCOME : $50,000
SUBTRACT: Exemptions: 4 X $12,500 : $50,000
(IGNORE THE REST )
YOUR TAXABLE INCOME: 0 X 20%
TAXES OWED : $0
Which means that family has NO SKIN IN THE GAME ( paying no taxes like the 47% that currently pay nothing ).
We’re back to where we are today.
Do you think someone making $50K/yr would be making a mortgage payment of $1250.00/mo interest + Principle +
taxes would make that person’s
house payment close to $3,000.00/mo. ?
Their house payment would be around $ 36,000.00/yr/
That would leave them a little over $1,000/mo to live off including groceries and utilities.