Good point, NPR
I found this point made on NPR quite smart and something I'd never considered. There's a discussion about tax rates, the AMT, revamping the system, etc.
Someone making $100,000 in San Francisco is lower middle class. Someone making $100,000 in Des Moines is upper middle class. But for federal taxes, they are in the same tax bracket. Why is cost of living and class you fall in for your area not taken into consideration in the tax code?
I say yes. I like this idea. Why I hadn't ranted about this prior to NPR bringing up the idea, I don't know.
2 Comments:
Makes sense, but the tax code is already a pain in the ass and this would just make it worse. What if you lived in multiple cities with multiple costs of living with multiple employers? The cost of preparing your taxes would exceed your AGI...
Word Verification: vwdeph
you pay for where you live, essentially; it costs more to live in san francisco because people are willing to pay more for what they get out of living there.
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