Two incomes

Many middle-income families are wondering why they can’t seem to get ahead especially those two income families. Compare one earner making $80,000 and two earners making $160,000. Gross income $80,000 less ten percent into 401K plus 7.65% into social security leaves $65,860. With two children zero income tax. Now the two-income family. Gross income $160,000 less ten percent into 401K equals $144,000 taxable less $13,000 in federal and state income and less $12,200 social security leaving $118,000. Next deduct $24,000 for childcare leaving $94,800. Food cost for the average family is $1,000 per month but $2,500 for families that eat out or order in. This is an extra $18,000 per bringing the net down to $76,800. Not counting the stress on working families, the difference in incomes is $76,800 less $65,860 or $10,940. Assuming a 40-hour work week the second spouse is working for $5.47 per hour. If two income families would do this calculation many would stop working. There are other cost not included, things like the nicer clothes needed by the working spouse and a less expensive car for the stay at home spouse.