This is a wildly exaggerated calculation. I make roughly around 300k and my effective taxes (both Fed and State combined) was 28%. I also have daughter and she goes to daycare that costs me $1200/month. I also own a 5 bedroom 2800 sqft house in East Bay, that costed me around a million bucks and the mortgage is around 3500 including insurance and property taxes
Mortgage interest deduction, probably. And it seems like we've gone full circle to the original comment about bankers capturing all the income beyond what it should cost to eat every day and build a house to sleep in.
Mortgage deduction, property tax deduction, child credits, business expenses, charity deduction, medical expense deduction, child care deduction. Also, the entire state taxes is deducted.
My 300k is 1/3 in private stock options which may not actually become money for another 5yrs, if ever. They don't accept it in exchange for homes and my 200k income isn't enough to buy a home, esp given there is a mass layoff every 7yrs. House prices go up more than the down payment I save each year so I get further from owning a home. Oh, and the east bay is about 2hrs fro SF so I'd never see my kids even if I bought a home
