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September 30, 2017 | Who’s This ‘Middle Class’ Aanyway?

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

For someone with hundreds of millions of dollars, like ex-Goldman alumnus Cohn, $30 to $45k is a rounding error.  But for a so-called financial wizard advising the government purportedly on how best to ‘help the middle class’, it’s revealing and super embarrassing that he overestimates the average household income by 26% and the average median income by 45%.  Not credible leadership.

Economic advisor Gary Cohn told reporters on Thursday that a typical four-person American family bringing in $100,000 a year would save $1,000 under the Republicans’ proposed tax reform effort, which they could use to pay for a new car or a kitchen.

In actuality, the average American family makes $74,000 a year before taxes, or about $26,000 less than that, according to the Bureau of Labor Statistics. The median American family income is roughly half of Cohn’s estimate, or only about $55,000.

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September 30th, 2017

Posted In: Juggling Dynamite

One Comment

  • Avatar Ted Catlin says:

    I’m no fan of Cohn or Goldman but I think you are splitting hairs here. He said “…a typical four-person American family bringing in $100,000 a year would save $1,000 under the Republicans’ proposed tax reform…” which is much different than saying ALL middle class families bring in $100,000 In all likelihood there are many that do with both husband and wife working.

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