A guy asked if $400k a year makes you rich, sparking off a great debate on wealth in America

President Biden has drawn a pretty clear-cut line at the amount of money he believes makes someone rich. In numerous speeches, he’s said that those making $400,000 or more should pay a higher tax rate because “they can afford to pay a little more.” Biden has proposed a tax increase on high-income earners to help…

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President Biden has drawn a pretty clear-cut line at the amount of money he believes makes someone rich. In numerous speeches, he’s said that those making $400,000 or more should pay a higher tax rate because “they can afford to pay a little more.”

Biden has proposed a tax increase on high-income earners to help pay for the social spending the country has done to offset economic problems caused by the pandemic.

In a joint interview with Vice President Harris, Biden said, “I will raise taxes for anybody making over $400,000,” and anyone making less than that would face “no new taxes.”


A breakdown by CNBC found that for the most part, Biden has been honest about his plan, and the only people who make less than $400,000 a year who would see a hike in their taxes are those who had a windfall event that put them over the threshold.

It’s worth noting that Biden’s idea of who is wealthy is a bit different than the man he served under as vice president. When Barack Obama was president he sought to raise taxes on the wealthy who he saw as those making $250,000 or more.


On the surface level, $400,00 does seem like a lot of money in comparison to the average American. Those making $400,000 and above represent the top 1.8% of taxpayers, earning about 25% of the nation’s income.

Some people make the point that $400,000 isn’t that much money for someone who lives in an expensive area such as Manhattan or San Francisco. However, the average household income in Manhattan is $138,000 so you’re doing pretty well if you’re making $400,000 or more.

That is assuming that you’re not wasting your money living extravagantly.

Twitter user Chief Resistance Officer asked his 30,000-plus Twitter followers if making $400,000 a year is considered “rich” and he got some thoughtful responses. The overwhelming opinion seems to be that if you make that much you are probably rich. If you’re making $400,000 or more and living paycheck-to-paycheck, you’re probably being irresponsible with your money.

Yes, $400k is rich.



If you don't think making $400k a year makes you rich, you're probably woefully out of touch.


The problem is a lot of people who are well off think they're barely scraping by because they also assume they need a 5 million dollar home, private school for the kids, country club membership, vacations twice a year, etc.
— Kurtsed Skeletton (@KurtisScaletta) September 30, 2021


On $400k a year, you're probably rich, but not wealthy.



Some say that it matters where you live.



In just about every place of this country, earning $400K makes you very well off. In some areas, you'd be 'rich.' In others, you'd be doing very well. In Manhattan or San Francisco, you wouldn't be filthy rich, but you could make a decent go at it.
— (@northeast_mama) September 30, 2021


It's all about how you manage your money.


My son and daughter-in-law earn over 400k together. They still rent a home, they buy used vehicles (nice used vehicles), they don't splurge except on my granddaughter and they go out to eat a lot. They use the rest of the money to invest/save. They are millionaires now 1/
— Roe V Wade IS the ballot! (@GLBRBR) October 1, 2021


WARNING TRUTH BOMBS AHEAD.



So what did we learn? The original poster says that $400K makes you "rich" but not "wealthy."


Reading the thousands of comments on this thread has been very interesting. There's no consensus answer to the question. I'm come down on the side of $400K makes you "rich" but not wealthy. Wealthy, to me, is not having to work anymore - your money does that for you.
— Chief Resistance Officer (@crushthebigots) October 1, 2021

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