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The Almighty Buck

In Costly Bay Area, Even Six-Figure Salaries Are Considered 'Low Income' (mercurynews.com) 366

An anonymous reader shares an article: In the high-priced Bay Area, even some households that bring in six figures a year can now be considered "low income." That's according to the U.S. Department of Housing and Urban Development, which recently released its 2017 income limits -- a threshold that determines who can qualify for affordable and subsidized housing programs such as Section 8 vouchers. San Francisco and San Mateo counties have the highest limits in the Bay Area -- and among the highest such numbers in the country. A family of four with an income of $105,350 per year is considered "low income." A $65,800 annual income is considered "very low" for a family the same size, and $39,500 is "extremely low." The median income for those areas is $115,300. Other Bay Area counties are not far behind. In Alameda and Contra Costa counties, $80,400 for a family of four is considered low income, while in Santa Clara County, $84,750 is the low-income threshold for a family of four.
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In Costly Bay Area, Even Six-Figure Salaries Are Considered 'Low Income'

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  • solution (Score:5, Informative)

    by ganjadude ( 952775 ) on Tuesday April 25, 2017 @03:05PM (#54300499) Homepage
    move
    • Re:solution (Score:5, Insightful)

      by Penguinisto ( 415985 ) on Tuesday April 25, 2017 @03:16PM (#54300577) Journal

      Better yet - don't move to Silly Valley in the first place.

      There's lots of places (Austin, Portland, Phoenix, Salt Lake City, Southern Florida, Chicago, Atlanta, etc) where you can find lots of quite decent tech jobs. They don't pay a glamorous salary and don't have pre-IPO stock options per se, but the cost of living won't break your financial back. As a bonus, you don't have to put up with snobby California politics, people, etc. ;)

      Also of note, many big-name corps (e.g. Intel) have offices, labs, etc in out-of-the-Valley places (Intel has fabs and sites in Chandler, AZ and Hillsboro, OR, among others.)

      • im just outside NYC - charlotte bound myself for these very reasons
      • Or do what I did - get a job working for a company based in San Mateo County, but work remotely from your low cost of living in the Midwest.

        You can't buy a parking space in San Mateo for what I paid for a 2500 sq. ft. home.

      • good advice for the millions of people born and raised in expensive places. just uproot your entire life and move to what may as well be a different country.

    • Move, and keep the job remotely.

      Then add a second one.

    • MOV dest,src
      Modifies flags: none

      Copies byte or word from the source operand to the destination operand. If the destination is SS interrupts are disabled except on early buggy 808x CPUs. Some CPUs disable interrupts if the destination is any of the segment registers.

  • That's funny... (Score:5, Insightful)

    by __aaclcg7560 ( 824291 ) on Tuesday April 25, 2017 @03:14PM (#54300563)
    When I was out of work for two years (2009-2010) and underemployed for six months (working 20 hours per month) in Silicon Valley, I couldn't qualify for food stamps because I made too much money (20 x $16 = $320) as a single adult. After I filed for Chapter Seven bankruptcy in 2011, I still didn't qualify for food stamps. You have to work 20 hours per month at minimum wage (~$160) to qualify for food stamps. I ate a lot of rice and beans during that time.
  • make the H1B minwage $150K then

  • What? (Score:2, Informative)

    by xession ( 4241115 )
    $100,000/yr = $8333/mo. Lets say your rent is up there at $5500/mo, that still leaves you with $2833/mo to feed yourself, your spouse and your 2 children. The remainder of what you have to spend nearly $34,000 for the year to pay your bills, buy food and buy whatever other crap you need. A helleva lot of people don't even make that much and support a family of 4 on a single income and their salary hasn't yet even covered their housing expenses. The lower amounts they mention, I can agree with, considering c
    • by eth1 ( 94901 )

      You forgot taxes. Someone earning $100k is probably paying about $25k in federal taxes, so they're "only" left with $75k. In your example, that leaves them with $8400 after the rent.

      • Re:What? (Score:5, Informative)

        by AnotherBlackHat ( 265897 ) on Tuesday April 25, 2017 @03:43PM (#54300767) Homepage

        According to http://taxformcalculator.com/tax/100000.html [taxformcalculator.com] someone making $100,000 a year in California has a take home pay of $67,818.01.

        If their rent was $5500 they'd have $151 left over each month for expenses.
        They'd better move, because they can't afford that place.

        • They'd better move, because they can't afford that place.

          They can't afford San Francisco. Rentals in Silicon Valley in general, and San Jose in particular, are much cheaper. I make $50K+ year and pay $1466 per month for a 475-sqft studio apartment. A three-bedroom apartment is $3,000+ per month.

    • With taxes $100K / year is more like 5000/month at best. And that doesn't include any other monthly costs like utilities, insurance and vehicle.
    • $100,000 a year does not equal $8333 a month after taxes.

    • by chill ( 34294 )

      Do you actually work for a living? $100,000 a year doesn't equate to $8,333 a month in take-home pay. Try deducting FICA, Social Security, Medicare, and local taxes. That gives you about $4,600 take-home per month. Oh, don't forget insurance premiums and 401(k)/IRA contributions so you can one day afford one day in the far future to retire, so say $4,000 / month take-home.

      Rent is more like $3,000 / month, then add electricity, water, trash, insurance, telephone, and Internet.

      The rest, if you can find it, c

  • ...if I say, I do't give a fuck about San Francisco or the people that can' t make it on $100k salaries.

    • As someone who lives in Silicon Valley on $50K+ per year and rub shoulders with people who make minimum wage on public transit, we don't care about nouveau riche poor.
  • by slew ( 2918 ) on Tuesday April 25, 2017 @03:38PM (#54300737)

    The actual number is of little consequence most.

    In most bay area locales, Section 8 housing is basically unavailable for new applicants. Wait lists are estimated to be greater than 8-10 years or simply closed to new applicants [hacsc.org] until further notice because of essentially unbounded wait times and basically zero new section 8 housing inventory.

    AFAIKT, the increases of these income threshold numbers only serve to keep a small amount of existing people (the vanishingly small fraction of the 17,000 total served by section 8 with reasonable jobs near the limit) from being kicked out of Section 8 housing simply by getting cost of living raises at work and forced to fend on their own...

    Basically, section 8 is totally broken in the bay area and is a non-factor in housing. This adjustment doesn't really do anything either way to change this...

  • by avandesande ( 143899 ) on Tuesday April 25, 2017 @03:45PM (#54300785) Journal
    I know many of you think the year of remote work will coincide with the year of the Linux desktop, but I am getting the sense that companies are tired of paying for office space. When remote really does go mainstream what will happen to jobs and real estate in these areas?
    • I'm in Los Angeles, and we are considering more remote work. Commute times are too high, office rent is too high, and home rentals too high for the value. Oh, and billing rates are too low... ...and there are plenty of places with good quality of life and dramatically lower costs. Something has to give.
  • by gurps_npc ( 621217 ) on Tuesday April 25, 2017 @03:51PM (#54300827) Homepage

    Look, 100k/4 = 25k = low salary. Not unusual at all. Similarly if you have 10 children, but only make 200k, your freakin' POOR.

    The basic problem is our culture tries to measures wealth by income rather than net worth.

    You can not compare the salary of a young, healthy, single orphan with a married couples supporting two sets of sick parents and multiple kids.

    We need to reset our definition of wealth to be based on cash, stocks, mutual funds and real estate in the bank. This means the IRS should ignore your salary and base your taxes on what you own. Ignore the stuff in your IRA and give a set amount to ignore (just as we don't take the first 10k of income for a single person). Start it at 1% and gradually raise it to a max of 5% if you have more than a couple million in the bank.

    If we did this, we could get rid of most of the complexity of the tax code, because it is all based on not overcharging the poor, which this system does automatically.

    • by Whorhay ( 1319089 ) on Tuesday April 25, 2017 @04:24PM (#54301041)

      I know I've seen the idea of taxing wealth commonly derided in the past seemingly with mountains of evidence of why it's worse than taxing income. That said I'm not an economist and can't remember much about why so I'll just point out what I can think of off the cuff.

      1. Taxing wealth directly makes it much harder for people to actually build wealth over time as eventually significant portions of your income will be eaten up by it if you're trying to build enough wealth for retirement.

      2. Such a policy might encourage people to save even less than they do now and instead fritter away income on intangibles resulting in more rapid accumulation of wealth in the pockets of fewer individuals who can afford to buy their way around the wealth taxes and or have the income to support just paying it.

      We do actually already have some wealth taxes implemented, property and estate taxes come to mind. I'd rather see the tax code simplified by just eliminating the special treatment for edge cases, and treat all income as income regardless of its source. Rebalance the tax brackets accordingly and move on. The income tax code that most people actually deal with isn't that bad. I file an itemized return every year and it only takes about two hours to sort out when I actually sit down to do it. I'd prefer a system that just presents me with the pre-filled forms and asks for me to file an objection or sign off on it, but what we've got is tolerable for individuals.

      • by Pfhorrest ( 545131 ) on Tuesday April 25, 2017 @05:15PM (#54301333) Homepage Journal

        What we need to do is somewhere in between: tax income from wealth, minus expenses on lack of wealth. That is to say, tax based on your borrower/lender (including renter/landlord) status. If you're getting free money just from already having money, you get taxed for that; meanwhile if you're paying money just because you lack money (like because you don't own a home, and you can't exist nowhere, and wherever you do exist someone is going to charge you for that privilege), that counts against your taxable income. You're free to make whatever money you can make from your own labor and to save as much of that as is personally useful to you but as soon as you start turning your accrued wealth toward generating an unearned income they you get hit with taxes.

      • by Ichijo ( 607641 )

        Taxing wealth directly makes it much harder for people to actually build wealth over time...

        But won't your take-home pay be greater when you no longer have to pay income taxes?

        Those with the most wealth benefit the most from national defense to protect their wealth. Is it fair that those people should be subsidized by the poor?

        If national defense were constitutionally required to be funded entirely with wealth taxes, would the rich and powerful support invading other countries, or would they insert pacifis

    • by Solandri ( 704621 ) on Tuesday April 25, 2017 @04:34PM (#54301119)
      So in your misguided worldview, people who scrimp and save, research, and invest their earnings wisely should have to pay more taxes and be excluded from government assistance. While someone who earned exactly as much money but blew their income on parties, concerts, eating out, hookers, and blow should have to pay lower taxes and qualify more easily for government aid?

      Net worth (wealth) is just the integral of income minus expenses (or if you prefer, income minus expenses is the first derivative of wealth). Income is the correct basis for determining taxation and qualification for government aid. How much wealth you accumulate depends not just on how much income you make, but also how much money you spend. As a result, any form of taxation based on wealth unfairly penalizes people who save their money instead of spending it unnecessarily. OTOH, taxation based on income treats everyone the same regardless of whether they spend their money wisely or foolishly.

      Also, since wealth is the integral of income minus expenses, wealth is the accumulation of past income. So any attempt to tax wealth is an attempt to retroactively tax past income. Ex post facto laws are illegal under our Constitution.

      If you want to tax rich people more, increase the tax rates on higher income. It's as simple as that.
      • OTOH, taxation based on income treats everyone the same regardless of whether they spend their money wisely or foolishly.

        So people who took advantage of the opportunities available to them should have to pay more taxes, while others who had exactly the same opportunities but choose not to exploit them should have to pay lower taxes and qualify more easily for government aid?

        Taxation based on income does not treat everyone the same. Those who take better advantage of the opportunities that come their way are penalized compared to others who let those same opportunities pass by but were equally wise or foolish in spending what

    • Economic suicide. A wealth tax on assets over $100MM might make sense, but once you have that kind of wealth it is easy to place it outside the tax man's reach.

      Also consider what a small business is and how it's "wealth" is created (and what its wealth is).

      Yes, income is meaningless for everything but cash flow...
  • Gentrification Map (Score:4, Informative)

    by rpavlicek ( 3740005 ) on Tuesday April 25, 2017 @04:14PM (#54300981)

    This gentrification map shows the underlying cause to rising prices:

    http://www.urbandisplacement.o... [urbandisplacement.org]

    I live in the purple strip between San Jose/Sunnyvale. In the last 5 years, house prices (in that area) have gone up 30-50%. In my own neighborhood, 4 houses were demolished to the ground and completely new homes were built in their place (in the last 12 months). Most of these 'modest' homes sold for 1.5 million+. My guess is they would sell for 200-300k in less-demand-areas.

  • This is what doesn't seem to enter into the discussions about basic income and national minimum wage laws. Perhaps I'm just reading the stoopid versions in the popular press, but it seems clear that proposals like a national (US) $15 minimum wage simply can't fly with cost of living disparities like this, without significant tailoring. A 'basic' income of $17K doesn't take you very far in Si Valley (or my adopted homeland of Portland, for that matter). At the very least, you'd need some kind of market baske
  • "In Costly Bay Area, Even Six-Figure Salaries Are Considered 'Low Income' "

    And that's one key reason why I won't live there (among many, many other reasons).

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