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American Dream? $250,000+ bracket worked hard, doesn't feel rich, already taxed to high heaven.
Shawn Tully ^ | Fortune

Posted on 10/28/2008 3:39:41 PM PDT by quesney

The American dream - on hold Meet the HENRYs (high earners, not rich yet). They make $250,000-plus and get taxed to high heaven. And they're about to be socked again.

Aspiring HENRYs played by the rules: They won the best grades in high school, got accepted at good colleges and grad schools, and worked daunting schedules as medical interns or associates in law firms.

Now this group of superachievers is being targeted as a cash machine. Barack Obama has pledged to pay for middle-class tax cuts and credits by raising taxes on the HENRYs. Obama and the congressional Democrats frequently refer to households earning over $250,000 as the "rich." But whether the HENRYs are truly "rich," or ever will be, is debatable.

The reason the HENRYs are strapped for both lifestyle and nest egg is twofold: First, they already face a large and rising burden for federal, state, and property taxes plus the knife of the AMT. Second, they invest heavily in their kids: saving for private colleges, paying for day care - and providing dance, tennis, or gymnastics lessons. They have little left over for either extravagant living or, in many cases, saving for an affluent retirement.

More (case studies):
http://money.cnn.com/galleries/2008/fortune/0810/gallery.tully_henrys.fortune/index.html

(Excerpt) Read more at money.cnn.com ...


TOPICS: Activism/Chapters; Culture/Society; News/Current Events; Politics/Elections
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$250,000 is not rich if you live in a big city or on most parts of the Two Coasts, have a family to raise and are paying for college.

These are the kind of hard-working role models Obama wants to milk?

1 posted on 10/28/2008 3:39:41 PM PDT by quesney
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To: quesney

Hey, HENRY. Good news. You now qualify for the simplified IRS tax form with only one question.

How much did you make?

Send it in.


2 posted on 10/28/2008 3:45:04 PM PDT by Jim Robinson (Free Republic is Palin Country! God bless her.)
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To: quesney

We are the forgotten class, not millionaires but not poor. We get soaked the worse. We have 6 kids and it’s tough. We got nothing when there was an economic stimulus, not that I wanted it, but with 6 kids it would come in handy, we don’t qualify, we just pay for everyone else’s kids.


3 posted on 10/28/2008 3:45:19 PM PDT by rlferny
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To: quesney
$250,000 is not rich if you live in a big city or on most parts of the Two Coasts, have a family to raise and are paying for college.

The only place where $250K is really rich is next door to Obama's half-brother.

I've got two kids in college, so the term "positive cash flow" is a fleeting memory. And no, our combined HH income is nowhere near $250K (but I'm not complaining).

4 posted on 10/28/2008 3:45:36 PM PDT by Night Hides Not (McCain is Lucy, McCainiacs are Charlie Brown, & the football was a secure border...before Sarah.)
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To: quesney

I posted this on other threads: Look for a wealth tax under Obama. He won’t be able to raise enough just from income. He needs to confiscate wealth, although tax sounds much kinder.


5 posted on 10/28/2008 3:45:56 PM PDT by Pearls Before Swine (Is /sarc really necessary?)
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To: quesney
Down to $150,000 according to O’Biden today.
6 posted on 10/28/2008 3:46:05 PM PDT by Parley Baer
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To: quesney

UH...as of today...RICh has been lowered to $150,000....


7 posted on 10/28/2008 3:46:51 PM PDT by goodnesswins (Socialism is great until you run out of someone else's money (M. Thatcher))
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To: Parley Baer

It will be down to $25k when it’s all said and done.


8 posted on 10/28/2008 3:48:31 PM PDT by randomhero97 ("First you want to kill me, now you want to kiss me. Blow!" - Ash)
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To: Parley Baer

I earn between $110 - $150 depending on bonus. I’m single, no kids and own no property - just a renter...guess what, I’m NOT rich. For my job and to make the money I make I must work in either LA or NYC - and what I make does NOT make you a rich person, or even close. I’m a Demo’s wet dream - tax the crap out of me and give the majority of my income to the boondoggle B.S. programs crappy politcos to continue to feed at the public trough. I detest what Demos have become......this entire election sickens me.


9 posted on 10/28/2008 3:50:18 PM PDT by FeliciaCat (I like my money where I can see it...hanging in my closet.)
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To: quesney
Not there yet but working on it...I'll get there as long as Obama doesn't get in my way...


10 posted on 10/28/2008 3:50:29 PM PDT by darkwing104 (Lets get dangerous)
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To: quesney

I heard Biden say today that it was $150,000, so I think the “rich meter” is flexible.

Question, this article mentions the AMT...didn’t they get rid of that with the bailout bill? It was my understanding that was one of the concessions the Dems made to get the Republicans on board.


11 posted on 10/28/2008 3:51:51 PM PDT by Dawn531
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To: rlferny

That’s outrageous. This is absurd.


12 posted on 10/28/2008 3:52:06 PM PDT by quesney
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To: quesney

I am the Henry’s.


13 posted on 10/28/2008 3:54:28 PM PDT by Snappy1MarineMom (Don't Blame me I voted for Keys)
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To: Snappy1MarineMom

It is not a matter of how much one makes but how they manage opportunity. I know a lady who qualifies for food stamps according to income, but actually does quite well materially via a thrift store she runs. To survive Obama, we will all have to become opportunity managers.


14 posted on 10/28/2008 3:58:21 PM PDT by DonaldC
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To: DonaldC

Yes, I agree with that. It has been in my case not how much I make, nut how much I keep. Taxes on business owners is
astronomical. I have always been thrifty no matter how high
my income goes, however what is the point of working so hard
if 0bama is going to waste it and give it to people who
don’t even work hard.


15 posted on 10/28/2008 4:03:54 PM PDT by Snappy1MarineMom (Don't Blame me I voted for Keys)
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To: quesney

Obama doesn’t want to spread the wealth around. He wants to spread the poverty around.


16 posted on 10/28/2008 4:17:37 PM PDT by Entrepreneur (The environmental movement is filled with watermelons - green on the outside, red on the inside)
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To: quesney
$250,000 is not rich if you live in a big city or on most parts of the Two Coasts, have a family to raise and are paying for college.

While not rich, I'd consider $250,000/year 'well off'. That includes family to raise and college. A great deal really depends on how much of this income is 'earned' (in legal terms). I wouldn't call a $250,000/year wage earner or businessman rich, but I would call being able to receive $250,000/year (probably less) with no need to work for it rich. (BTW, I live in San Diego, CA.)

17 posted on 10/28/2008 4:18:53 PM PDT by nosofar
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To: FeliciaCat

Not to mention that they also want to confiscate your 401(k), replace it with US Bonds @ 3% and spread the wealth of your former tax deferral to those that don’t pay any taxes.


18 posted on 10/28/2008 4:20:40 PM PDT by JrsyJack
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To: Dawn531
I heard Biden say today that it was $150,000, so I think the “rich meter” is flexible.

Biden? That could have meant anything.

19 posted on 10/28/2008 4:21:40 PM PDT by nosofar
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To: Entrepreneur
Obama doesn’t want to spread the wealth around. He wants to spread the poverty around.

Wealth is relative anyway. By taking more from those with it he creates more that have it. Soon everyone will be rich. Ingenious. :)

20 posted on 10/28/2008 4:24:44 PM PDT by nosofar
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