We hear about the “middle class” all the time. Most of our clients believe themselves to be the “middle class”. Unfortunately I have to tell them that they are not the “middle class”. According to their income they are the wealthy, that scorned group that does not pay enough in to cover the lower 45% or so of the nation that pays in nothing into the IRS coffers.
So I am taking this moment to help define the “middle class” , which again is a bit like defining “common sense” we all have our own idea, but it may not match the definition of the person standing next to you.
According to the Pew Research Center they have defined middle class households as those earning 67%-200% of a state’s median income.
Illinois Median: 56,210
Middle Class range – 37,473 – 112,420
Now does this feel right? I think the range actually works at least from Illinois. But from the IRS’s standpoint income over $100,000 is the beginning of affluency.
To argue further give us a call.