[backhoe]

One word she missed...

Taxes...

[alloysteel]

Something else is at work here. It is like the lottery winners, especially of huge jackpots, going broke within a couple years. The relatively high income that results from both partners working, builds an expectation that the increase in income will continue to rise forever, and obligations are incurred that exceed the growth in net income. Even without income drop, the margin is eaten up, and the working couple is just living in poverty at a higher level.

It is rather like the dieter who has taken out every bit of fat from diet, and still continues to gain weight, because the exercise portion of the regimen was not implemented.

[Cincinatus' Wife]

TAXES! Excellent point. What's it up to, 50%?

BIG government needs to cut back.

[txzman]

"One word she missed... Taxes"

It's the same word THEY ALL miss. Paying ~50% of your combined income in Federal, State, City, County, Property and Sales Taxes (and yes YOU are taxed that much) is killing this country.

[ladtx]

Taxes...

You mean these?

Building Permit Tax
Capital Gains Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Court Fines (indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel permit tax
Gasoline Tax
Hunting License Tax
Inheritance Tax Interest expense (tax on the money)
Inventory tax IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
Road Usage Taxes (Truckers)
Sales Taxes
Recreational Vehicle Tax
Road Toll Booth Taxes
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax
Toll Bridge Taxes
Toll Tunnel Taxes
Traffic Fines (indirect taxation)
Trailer registration tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft registration Tax
Well Permit Tax
Workers Compensation Tax

[newgeezer]

One word she missed... Taxes...

Yes, government is way, way too big and overstepping its bounds by orders of magnitude. Taxes are obscenely high by any measure of Constitutional justification.

But, blaming bankruptcy on taxes is something like blaming obesity on food, blaming 9/11 on the airlines, or blaming lung cancer on Philip Morris.

Bankruptcy is caused by living too close to the edge, poor planning, unpreparedness and/or "unbridled enthusiasm."

[Looper]

Right on, Backhoe. The fact that no discussion of the ever increasing tax burden is included in this article diminishes its credibility. For example, I would bet that a majority of that expensive daily commute consists of taxes (gas, parking taxes, tolls, etc.). Either Money or Kiplinger did a study showing the difference between families 30 years ago and today and the tax increase is significant.