So you’re wondering what income level is considered rich. After all, if everybody makes $1,000,000 a year, are you considered rich if you make only $500,000 a year? Probably not! In other words, rich is relative and also subjective.
When Obama was president, he considered single people making over $200,000 to be rich. He specifically called for raising taxes on singles making over $200,000 and couples making $250,000 every year he was in office.
At the end of 2012, there was a compromise in Congress for raising income taxes for those making $400,000/$450,000 and above.
Why $400,000 + $400,000 doesn’t equal $800,000 for a married couple to pay more taxes, I’m not sure. The government harkened back to its old days of believing one spouse should stay at home. Thankfully, the marriage penalty tax has all but been abolished.
Now in 2021+, Joe Biden also believes anybody or any household making over $400,000 is rich. He has promised to raise taxes back to 39.7% from 37% for those making over $400,000. That’s tough for parents with kids who are already burned out from working some much at home during the pandemic.
Therefore, if you are constantly stressed out making a lot of money, you might want to consider taking things down a notch! Making over $400,000 while working 80 hours a week is not considered rich. That makes you a time mendicant with minimal freedom to do what you want.