How Much Money Do People Need to Live?

A new study looks at Washington state.  It provides estimates for various family configurations and provides this analysis.

washington living wage

Read the report:Click Here

The report does not state how it came up with these figures. Nor does it take into account regional differences.

The chart would have been better if the taxes were shown on a monthly basis, so that it addes to the gross income needed monthly.

The taxes seem high for this group, especially for federal income tax. Federal income tax might be deducted, but this income group should get refunds, and some might get the EITC. But they would still have to pay social security tax and medicare. Washington has a sales tax but no income tax, so figuring out that might be tricky.

While there might be some ways to cut spending–single people might opt for co-housing, for example–still, it takes quite a bit to cover basic living costs. Looking at the hourly wage, it seems clear that the $9 minimum wage in Washington is not going to be sufficient.

At the national level, the minimum wage has not kept up the rising living costs over time.  It is time for a major adjustment.

This entry was posted in Economy.

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