I wasnât aware the only way to avoid having kids was abortion. Somehow my wife and I managed to avoid it with no abortions until we were financially able to afford them in our thirties, magic I guess.
50k a year.
subtract FICA taxes of 7.5%
subtract 10% for fed and state income tax
that leave 41k
lets assume the kids share a bedroom. that means a 2 br apartment.
the average 2 br apartment costs 1200/month
26600k left
figure 5k a year for health care
21600 left
utilities 200/month
19200 left
food costs of 250/week
6200 left
1 car
500/month for insurance/car payment gas etcâŚ
family now has 200 left
To see just how different a tax situation can be, take a similar example but with a much different family structure. Instead of a single person, say that you have a married couple with two children with total household income of $50,000. In order to make comparisons simpler, weâll keep the rest of the assumptions the same: taking the standard deduction with all income coming from regular job pay.
In this situation, you start with the same $50,000 in gross income, but the standard deduction is twice as much at $12,700. Two spouses and two children add up to four personal exemptions, which at $4,050 each reduces your taxable income by $16,200. That yields just $21,100 in taxable income. Under the married joint filer rate structure, that puts you barely into the 15% bracket, and the initial tax calculation yields just $2,232.50 in taxes.
Yet thatâs just the start. Assuming that the two children qualify for the child tax credit, this family can reduce their tax burden by another $2,000. That brings the total tax bill down to just $232.50, and the effective tax rate on their $50,000 income is less than 0.5%.
And not something you would choose if you were trying to save money, dried beans are astronomically cheaper than canned. Another example of more expensive not equaling better.