When the average American earns $60,000 a year, they don’t need a new car or an expensive home, according to the Institute for College Access and Success, a nonpartisan research group.
They also don’t have the money to buy a $100,000 home.
Instead, they rely on the machinery and equipment they already have.
The Institute for Tax Reform (ITAR), an advocacy group that promotes lower taxes for working families, released a report on Wednesday that found that more than 60 percent of U.S. households do not pay federal income tax on their payroll.
ITAR found that the federal government has been spending less money on Social Security, Medicare and Medicaid, but it’s still collecting more than $700 billion in federal income taxes each year.
The federal government spends more than half of all federal income, but has not fully funded its social safety net programs.ITAR’s study found that an increasing number of working families are relying on their own personal savings to pay for their basic necessities, and are unable to get a mortgage, or can’t afford a down payment.
The report said the median household income for families with two adults and two children was $60-65,000.
The average income for single-earner households with one adult and two kids was $42,000, and the median income for two-earners was $51,000.
“There’s a growing gap between the richest and the poorest in the country,” said ITAR President John D. Lott.
“We need to raise taxes on the wealthiest to make sure we can afford to provide social security, health care, and education to the working poor.”
The report also found that in 2016, the average family made $11,800 per year.
That compares to $11.70 for a single family and $9.20 for a married couple with two children.
That gap is likely due to changes in the tax code that have raised the tax rate for those with incomes above $250,000 for married couples and $200,000 in couples with one child.
The report found that Americans earning $200-300,000 per year are also struggling to find jobs.
Nearly half of working households earning $300,00 or more per year live in poverty, and nearly 20 percent live in households that do not have a mortgage or a car payment.
The average family earns $27,000 or less annually.
The median household earned $46,000 last year, according TOF International.
The middle-income family earned $61,000; the top-income group earned $94,000 and the bottom-income $75,000.(Copyright 2018 Associated Press.
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