Are you middle class? It depends who you ask in Congress

The upper bound of "middle class" in America is often pegged at an annual income of between $150,000 and $250,000, but looking at legislation being drawn up by Republicans in Congress, it seems to be much, much higher.Why it matters: Some of the proposals for the forthcoming budget raise income cutoff levels to as high as $2.5 million per year.Driving the news: The House is considering allowing state and local tax deductions of as much as $40,000 for people making up to $500,000, Axios' Hans Nichols reported this week, a sign that some blue-state Republicans consider $500,000 to be a middle-class income.Between the lines: President Trump considers an annual income of $1 million too modest to justify higher income taxes, per Nichols, but is fine with the idea once household income reaches $2.5 million.The current incarnation of the bill also raises the level at which the estate tax starts being levied from $15 million to $30 million.Where it stands: To be in the top 10% of individual earners, a U.S. worker has to earn $2,905 per week, per the Bureau of Labor Statistics, which is $150,000 per year.To be in the top 10% of households in 2024, you had to earn $235,000.The middle class tops out at $169,800 for a family of three in 2022 dollars, which is $188,400 in 2025 dollars, according to Pew Research Center.How it works: Some government policies only apply to people making less than a certain amount, on the grounds that the rich are already comfortable enough not to need any extra help from Uncle Sam.Looking at where that line gets drawn provides an indicator of where the upper middle class ends and the upper class begins, at least in the eyes of Congress.Flashback: Trump, in his first term, sent out stimulus checks to those making $198,000 per year or less for married households filing jointly. People earning more than that amount were considered rich enough not to need the checks.Conversely, the net investment income tax — a tax on the rich — kicks in only once a married couple filing jointly makes over $250,000 per year.For President Biden, $400,000 was the key number, the level below which he said he would never raise taxes, and above which he wanted a new tax to help pay for Medicare.The bottom line: Now that home values and retirement balances regularly make their way into seven-figure territory, we've solidly entered a world of middle-class millionaires.

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