That was my initial idea - maybe not articulated well -at a base of 150k - that barely nowadays puts you into middle class -
So the formula puts that increase onto the 150 to 500 k class - but then the 500k to 1 Bil class can just "buy" their way out of it
We earn about 150 - Mortgage, (250k) 2 cars (less than 30 each) kid in university and one there soon means that the 150 would not be goin' to buy me "charitable donation", "political Donation" tax breaks of any kind - we try and sneak a few bucks into RRSP's when possible - but it ain't a lot
I agree that $150 is not NEAR the threshold it used to be. Right now two starting engineers at Lexmark or IBMwould make about that. After current taxes [in a state like Kentucky which has low taxes] net would be $90 or so. Start working through mortgage, cars, kids, savings, and that get eaten up quickly.
I would not be surprised it the threshold moves up to the $250K range once folks start doing the real math.
For folks living on $40-50K, $150 seems like a lot but once you are there, it moves out quickly.