The NY Times looks at an issue of pressing importance to its readers: how hard it is to get by in Manhattan on $500,000 a year. In fairness, the article is done with a sense of the absurdity of the question, and is pretty informative if you wondered how, exactly, people can end up feeling like they really are just getting by on that much money. Of course, the single biggest line item is predictable:
If a person is married with two children, the weekly deductions on a $500,000 salary are: federal taxes, $2,645; Medicare, $139; state taxes, $682; and city, $372. With an annual Social Security tab of $6,621, the take-home pay is about $293,000 annually…
Whatever you may think of the justice or efficiency of different tax rates, that’s one seriously large bite. It goes a ways to explaining why, in “New York…a new study from the Center for an Urban Future, a nonprofit research group in Manhattan, estimates it takes $123,322 to enjoy the same middle-class life as someone earning $50,000 in Houston”.
Compared to my own living expenses in Queens and experience with Catholic school tuition, I can see where some of the more astronomical expenses are; $192,000 a year ($16,000/month) for a three-bedroom apartment is obscene even compared to the cost of home ownership inside City limits, and some of the travel, wardrobe and other expenses listed are truly hard to get my head around.