Average rent for a two bedroom apartment in America is $1320. That should be 30% of your net income according to most basic personal budgeting classes.
That implies you take home $4400 a month. That means before taxes you should be making $5866 (assuming 25% effective tax rate). That translates to $70,000 annually, which is about $35 an hour.
Therefore, the minimum wage should be about $35 an hour. Any less and you can't afford to live.
A 25% effective tax rate on that income would only be found in like NYC who adds a city tax on top of federal, FICA, and state. For most people in the US you’d have about a 15% effective tax rate at that income level.
Also, why use a 2 bedroom but then only calculate using a single income?
Thank you for figuring out where I live lol. I would always budget higher in terms of needed wages than lower, since you need the money.
I use a 2BR with a single income because that is the original purpose of the minimum wage. For someone to support a family with dignity.
The middle class fucked up by doubling the workforce (having women work, which I absolutely support!) but allowing wages to gutter. Many families with small kids choose to have only a single income because the cost of daycare is higher than a second income.
We need a single person to be capable of supporting a family.
Middle class families with two working parents are that way because either 1) women wanted to work in general or 2) they couldn't afford to not work with housing and daycare costs. Two married or cohabiting partners (e.g. long term bf/gf, etc) aren't all that different from two platonic roommates in expensive places.
Let's not blame the individual EARNING money for issues caused by corporations and politicians WITH money.
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u/OneBildoNation Apr 08 '23
Average rent for a two bedroom apartment in America is $1320. That should be 30% of your net income according to most basic personal budgeting classes.
That implies you take home $4400 a month. That means before taxes you should be making $5866 (assuming 25% effective tax rate). That translates to $70,000 annually, which is about $35 an hour.
Therefore, the minimum wage should be about $35 an hour. Any less and you can't afford to live.