Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
Tax Video Gallery
A look ahead of next week's housing data, with Rob Stevenson, Fox-Pitt Kelton analyst.
Discussing today's top trades and where to look for opportunities tomorrow, with CNBC's Melissa Lee and the Fast Money t...
The USDA loan program is suddenly gaining steam, reports CNBC's Diana Olick.
Another government agency is guaranteeing loans, with CNBC's Diana Olick and the Power Lunch crew.
House Democrats are looking for ways to pay for new job-creating legislation, with Ann Lee, New York University; Phil Ke...

Current DateTime: 05:48:04 21 Nov 2009
LinksList Documentid: 23371764

RSS FEED

» Help

Current DateTime: 05:48:04 21 Nov 2009
LinksList Documentid: 30111251
powered by digg
Fast Money DisclaimerFast Money BiosAbout Fast MoneyRapid RecapFast Money Home
Text Size
Aug.27
9:09 AM ET
Wednesday, 27 Aug 2008
Obamanomics - Is $250,000 per Year Rich?

Presumptive Democratic nominee Barack Obama wants to raise taxes on Americans making over $250,000 per year. That may seem like a lot of money, but it depends a lot on where you live.

Someone with an income of $250,000 in Paducah, Ky., for instance, would need to make $586,000 in New York City to maintain the same lifesytlye.  So, maybe Uncle Sam needs to work in a cost-of-living component to the tax code.

Using a cost of living calculator from Bankrate.com, we compared what $250,000 translates to in various parts of the country. Here's is a sample of what we found:

In contrast, a person making $250,000 in New York would only need $106,000 to live in Paducah. The biggest driver of the cost differences is housing.  A comparable home in New York would cost $1.1 million vs. $0.2 million in Paducah. Rent for a comparable apartment, would be $3,425 vs. $550 per month. 

Other costs are also significantly higher, but are much smaller in absolute terms - a doctor visit is nearly double, a hair cut is 50 percent higher and even bowling is three times more costly in NYC.

You would expect consumer goods players like Proctor and Gamble [PG  Loading...      ()   ] and Coca-Cola [KO  Loading...      ()   ] and retailers like Wal-Mart [WMT  Loading...      ()   ] and Home Depot [HD  Loading...      ()   ] to take these factors into account in their pricing models.  So should the government think about cost of living when discussing income taxes?  People in higher cost areas like New York and California might vote yes.  

Comments?  Send them to

bythenumbers.cnbc.com

© 2009 CNBC.com

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share

CNBC HIGHLIGHTS

  • Technology can make or break a fortune in the world of alternative energy.
  • Many people are facing the holidays with substantially smaller incomes. Here’s how some are adapting.
  • Jim Cramer
  • Jim Cramer is a proponent of stocks that pay healthy dividends, and here are his top five dividend plays.
  • From salt, to lip balm to envelopes, it turns out that bacon flavoring can sell almost anything.
  • real estate signs
  • The homebuyer's tax credit jacked sales for a while, but 2010 is looking weak. Now what?
  • CNBC’s technology reporter Jim Goldman guides you through the best gadgets to buy this holiday season.
ADD COMMENTS
Remaining characters


Current DateTime: 01:04:05 21 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:01:49 21 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:04:04 21 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:04:04 21 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters