2018 Tax Bill Impact on a Middle Class Family
1) Married Couple with two kids under 17.
2) One Spouse makes $45K and the other works 2/3's time and makes $30K (this spouse is off work by the time the kids get home from school)
3) They rent a small home/apartment (if they owed a $200,000 home owing $180K in a mortgage at 4%, the answer didn't change)
I think this is Middle America, but I am open to changing the facts set once or twice if members want to see how changed facts impact the results. Here are the 2017 and 2018 federal tax liabilities for this example family:
2017 Federal Tax Liability: $3982
2018 Federal Tax Liability with December's Tax Bill Impact: $1742
That is a federal tax decrease of 56%+! It means an extra $187/month in the hands of a family that previously brought home $5,366 in net after tax monthly income. It is an instant 3.5% increase in after tax take home pay...considering they were only paying 5.3% of their income in federal taxes to begin with, that is huge.
The truth is that Middle America did get a significant tax reduction as a result of the December Tax Legislation.
Quote: ParadigmI am weary of the mis-information that is spewed about how the 2018 Tax Bill is a "give away to the rich" and that Middle Class America gets very little tax relief. So I ran a tax projection for 2017 and 2018 on the software I use in my CPA Practice. Here are the facts I used:
1) Married Couple with two kids under 17.
2) One Spouse makes $45K and the other works 2/3's time and makes $30K (this spouse is off work by the time the kids get home from school)
3) They rent a small home/apartment (if they owed a $200,000 home owing $180K in a mortgage at 4%, the answer didn't change)
I think this is Middle America, but I am open to changing the facts set once or twice if members want to see how changed facts impact the results. Here are the 2017 and 2018 federal tax liabilities for this example family:
2017 Federal Tax Liability: $3982
2018 Federal Tax Liability with December's Tax Bill Impact: $1742
That is a federal tax decrease of 56%+! It means an extra $187/month in the hands of a family that previously brought home $5,366 in net after tax monthly income. It is an instant 3.5% increase in after tax take home pay...considering they were only paying 5.3% of their income in federal taxes to begin with, that is huge.
The truth is that Middle America did get a significant tax reduction as a result of the December Tax Legislation.
$22 an hour for both spouses? Even for NYC thats considered decent take home pay. Not sure I see much of middle america doing that. Minimum wage increases are so anti-republican
Ok so family of 4 gets $187 extra per month. So under $50 a month per person.
Each person gets $1+ a day
Wow, an extra can of soda for everyone. Yippee!!!
Please run 2017 vs 2018 taxes for corporations most affected by trump tax cuts to see what they comparably get. Then come back
Quote: darkoz$22 an hour for both spouses? Even for NYC thats considered decent take home pay. Not sure I see much of middle america doing that. Minimum wage increases are so anti-republican
Ok so family of 4 gets $187 extra per month. So under $50 a month per person.
Each person gets $1+ a day
Wow, an extra can of soda for everyone. Yippee!!!
Please run 2017 vs 2018 taxes for corporations most affected by trump tax cuts to see what they comparably get. Then come back
I don't get it. On one hand you are making the income sound significant and on the other you are minimizing the discount. Trying to have your cake and eat it as well?
Maybe I missed it, but something I haven't seen discussed but is on-topic for the forum is the effect on gamblers. It seems to me that the increase in the standard deduction is even more punishing to gamblers than the previous policy. You can only deduct losses if you itemize, and the increase means fewer people will have enough deductions to itemize. The casual gambler who gets a W2-G is more likely to end up paying taxes on it even if he is an overall loser for the year.
Yeah, there saving $47 per month per family member...and now only paying $36 per person per month in federal taxes. What more would you want the tax bill to do for this family, have them pay zero?
Large corporations tax rate went from 35% to 21%, a 40% tax reduction, so less than the individual decrease in tax. Sure the absolute dollars are larger, but the corporations were paying a lot more in tax as well...or maybe they aren’t...the left can never clearly figure out if corporations aren’t paying any taxes because of all those loopholes or getting a huge tax break when the rates go down...which is it?
Quote: MaxPenI don't get it. On one hand you are making the income sound significant and on the other you are minimizing the discount. Trying to have your cake and eat it as well?
What im saying is I doubt this is typical income for most americans. Therefore most americans wont even see these savings. Which at $1+ a day arent really much
The family of four with one member only getting $15 an hour (which righties say is too high to force on employers as minimum wage) sees how much tax savings? And these are the people who need it most
Quote: ParadigmAhhh...not sure what to tell ya, $22+/hour is the average wage these days (Google May 2018 Jobs Reoprt). If you can’t make $22/hour in this economy by the time you are married and have two kids, not sure what to tell ya...you clearly made some pretty bad life choices along the way.
Yeah, there saving $47 per month per family member...and now only paying $36 per person per month in federal taxes. What more would you want the tax bill to do for this family, have them pay zero?
Large corporations tax rate went from 35% to 21%, a 40% tax reduction, so less than the individual decrease in tax. Sure the absolute dollars are larger, but the corporations were paying a lot more in tax as well...or maybe they aren’t...the left can never clearly figure out if corporations aren’t paying any taxes because of all those loopholes or getting a huge tax break when the rates go down...which is it?
Obviously you dont need loopholes when the republican Congress hands it to you on a gold platter
Quote: darkozObviously you dont need loopholes when the republican Congress hands it to you on a gold platter
Blah, blah, blah...So you’re winning strategy this November is to tell this family the tax bill was just terrible for them...good luck with that!
The question is will middle america see it as beneficial to changing or helping their lives (so it translates into votes)
Broken down to an extra buck a day I think the average family simply wont notice the savings
Even if its there it will not perceivably be there.
Especially if tariffs cause prices to skyrocket.
If everyone got an extra buck a day and Trump managed to get average prices lowered by a significant percentage then there would be a valid argument for him maintaining votes
Quote: ParadigmBlah, blah, blah...So you’re winning strategy this November is to tell this family the tax bill was just terrible for them...good luck with that!
Lol. Its not my strategy. Im not running for anything
Youre winning strategy is be excited over an extra can of soda per day
Quote: ParadigmBlah, blah, blah...So you’re winning strategy this November is to tell this family the tax bill was just terrible for them...good luck with that!
No, their strategy is Hillary lost to
that dunce Trump and they're still
weally weally mad about it. That's
all they have to run on..
Quote: darkozLol. Its not my strategy. Im not running for anything
Youre winning strategy is be excited over an extra can of soda per day
Actually they are more likely to spend that $187 buying a replacement vehicle. $187/month over 60 months buys a 2013 Toyota Corolla with less than 50K miles on it. Wow those 4 cans of soda each day really add up (who buys cans of soda for a $1 a piece anyway...its like $4 a 12 pack!)
“Hey we can afford a new car and get rid of that 2001 Ford Focus with 165,000 miles on it because of the Tax Bill”...my guess is that will be perceived as “doing better” by a lot of blue collar voters come 2020...and they don’t care about deficits and the National Debt...all they know is they got a new car with their tax savings.
Quote: ParadigmActually they are more likely to spend that $187 buying a replacement vehicle. $187/month over 60 months buys a 2013 Toyota Corolla with less than 50K miles on it. Wow those 4 cans of soda each day really add up (who buys cans of soda for a $1 a piece anyway...its like $4 a 12 pack!)
“Hey we can afford a new car and get rid of that 2001 Ford Focus with 165,000 miles on it because of the Tax Bill”...my guess is that will be perceived as “doing better” by a lot of blue collar voters come 2020...and they don’t care about deficits and the National Debt...all they know is they got a new car with their tax savings.
60 months? So theyre gonna spend 5 years buying a car that will be a decade old when finished paying for it
Righties really know how to live in style
Family of four making $70k a year can only afford 2013 car paid off by 2023
Lol yep keep hoping middle america enjoys the trump lifestyle
Quote: darkoz
The family of four with one member only getting $15 an hour (which righties say is too high to force on employers as minimum wage) sees how much tax savings? And these are the people who need it most
What on earth does the fact that one spouse would be making $15 per hour have to do with the fact that $15 per hour is indeed too high to set as minimum wage? I don't know about you, but most people I know above the age of 17 make more than MW.
What does what the family is making here have to do with MW at all?
If a person wants to make more than MW, they need to develop the skills that will let them sell their labor for a higher rate. IOW, don't count on the government to get you a raise.
Quote: AZDuffmanWhat on earth does the fact that one spouse would be making $15 per hour have to do with the fact that $15 per hour is indeed too high to set as minimum wage? I don't know about you, but most people I know above the age of 17 make more than MW.
What does what the family is making here have to do with MW at all?
If a person wants to make more than MW, they need to develop the skills that will let them sell their labor for a higher rate. IOW, don't count on the government to get you a raise.
The purpose of minimum wage is NOT to make certain unskilled labor gets more than they are worth
The purpose of minimum wage is to keep employers from taking advantage of workers
If you made minimum wage set to $3 then employers would hire people at $3.
I find it incredible that the same people complaining illegal immigrants are stealing their jobs (i.e. hired to work illegally for lower than expected wages) cant understand the purpose behind labor laws
SMH. Lets not let government tell business how to run things. Lets allow sweatshops and fire regulations be determined by each individual business
Make America Like 1922 again. Triangle Factory Fires anyone
Quote: darkozIf you made minimum wage set to $3 then employers would hire people at $3.
Only if people would accept work at $3. Most would not, same as most will not at $7.25 today. Take a look around and see that most places have to pay above MW to find workers. Heck, two years ago I told a recruiter that I would not take a title processor job at $15 since my skills were worth far more, told him they do not get me for that price and for that money I would rather deliver pizza.
I find it incredible that the same people complaining illegal immigrants are stealing their jobs (i.e. hired to work illegally for lower than expected wages) cant understand the purpose behind labor laws
Quote:SMH. Lets not let government tell business how to run things. Lets allow sweatshops and fire regulations be determined by each individual business
Make America Like 1922 again. Triangle Factory Fires anyone
What on earth do illegal immigration and fire codes have to do with a tax cut?
Quote: AZDuffmanOnly if people would accept work at $3. Most would not, same as most will not at $7.25 today. Take a look around and see that most places have to pay above MW to find workers. Heck, two years ago I told a recruiter that I would not take a title processor job at $15 since my skills were worth far more, told him they do not get me for that price and for that money I would rather deliver pizza.
I find it incredible that the same people complaining illegal immigrants are stealing their jobs (i.e. hired to work illegally for lower than expected wages) cant understand the purpose behind labor laws
What on earth do illegal immigration and fire codes have to do with a tax cut?
So you are for abolishing minimum wage.
Workers should simlly turn down work that pays too little. You want to rely on that?
No need for unions I guess. Everyone will simply demand higher wages and employers will go along
BTW how did that title processor job go? Did the employer hire you for more or move onto the next applicant?
Quote: darkozSo you are for abolishing minimum wage.
Workers should simlly turn down work that pays too little. You want to rely on that?
Why not? It would help people get into the workforce, especially teenagers.
Quote:No need for unions I guess. Everyone will simply demand higher wages and employers will go along
Less than 7% of private sector workers belong to a union. If not for union-shop clauses that would fall. So it seems most workers do not see the need.
Quote:BTW how did that title processor job go? Did the employer hire you for more or move onto the next applicant?
They moved on, I moved on. Eventually got one at an acceptable rate. So good to rely on skills and not the government!
Quote: darkozSo you are for abolishing minimum wage.
Workers should simlly turn down work that pays too little. You want to rely on that?
No need for unions I guess. Everyone will simply demand higher wages and employers will go along
BTW how did that title processor job go? Did the employer hire you for more or move onto the next applicant?
I guess I am against the minimum wage. I want the market to set it, not the government. If the wage is too low then there will not be enough workers that will fill the companies' needs, and wages will go up. I have skills that I worked hard to get. I negotiate (I like that word better than demand) for my wages, and if my present hospital does not think I'm worth it I can go to a different hospital that thinks I am worth what I'm asking. If no hospital will pay me what I want it just means I need to re-evaluate my worth to potential employers. My younger son graduated with a computer programming degree. he worked for it. He was valuable to a bunch of companies, and eventually selected a job with the best mix of money, vacation, geography, etc. Didn't need a union. Didn't need the government to tell his potential employers what minimum they can offer him.
If AZ did not get that title processor job because he wanted more that means he over estimated his worth to that company. That's the way it is supposed to work.
I do feel the government has a role in safety, which to me is totally different than setting wage rates. (addressing a previous post about a fire)
Quote: Paradigm
2017 Federal Tax Liability: $3982
2018 Federal Tax Liability with December's Tax Bill Impact: $1742
Thanks for showing how LITTLE the average family pays in Federal taxes. The example you list is not a family in poverty, but rather a family in the 'middle'. And the family will be paying one Starbucks Venti Latte per day in taxes. And many here are complaining they pay too much. A family of four pays one Starbucks a day. For Defense. For infrastructure. For debt service. For the VA. For the Smithsonian. For our National Parks. For the EPA. Etc..... ONE STARBUCKS A DAY.
We did have a brief discussion about this here.Quote: jml24Maybe I missed it, but something I haven't seen discussed but is on-topic for the forum is the effect on gamblers. It seems to me that the increase in the standard deduction is even more punishing to gamblers than the previous policy. You can only deduct losses if you itemize, and the increase means fewer people will have enough deductions to itemize. The casual gambler who gets a W2-G is more likely to end up paying taxes on it even if he is an overall loser for the year.
With gas prices on the rise under Trump, simply filling up a 12 gallon tank 9 times erases all the benefits someone in the lower 20% received from the tax bill.
¯\_(ツ)_/¯
Quote: SOOPOO
If AZ did not get that title processor job because he wanted more that means he over estimated his worth to that company. That's the way it is supposed to work.
It was a funny thing thing there. The recruiter asked "why" and we discussed it for almost half an hour. He wanted to know because he kept getting the same response I was giving. He even told me not to apologize for ranting. Title is a stratified industry, some places need drones. One such place slapped me down for showing they had a defect. Never stop the line!
In gambling terms, his client was a low-end break-in joint and I had been dealing at the Stardust a few years. I was not ready for Caesars Palace, but I was not at the level where I had to come in and help move tables on my day off, either.
So I delivered suitcases while awaiting better offers. Not only did it work out, but clients were impressed with my hustle.
Good for your son for taking a real degree, btw.
Quote: darkoz60 months? So theyre gonna spend 5 years buying a car that will be a decade old when finished paying for it
Righties really know how to live in style
Family of four making $70k a year can only afford 2013 car paid off by 2023
Lol yep keep hoping middle america enjoys the trump lifestyle
Darkoz, you really have no idea what average America is like do you?
I use $22/hour in my example and you scoff saying $22 is above a middle class wage only to be told that is the average hourly wage in America per the US Jobs report in May of 2018.
Now you scoff at a 60 month loan...that’s a five year car loan which is the term loan the majority of America uses to purchase a car.
Now you claim an 11 year old car is just a tragedy for an average American family...here is another piece of real information for you...the average age of a US car on the road today is 11+ years. Gee, sounds like that is the kind of car an average American family actually owns.
You are the one out of touch with the facts of average America. Move back to the cesspool that is the Trump Bashing thread...similar misinformed bobbleheading is rampant over there.
Quote: ParadigmDarkoz, you really have no idea what average America is like do you?
I use $22/hour in my example and you scoff saying $22 is above a middle class wage only to be told that is the average hourly wage in America per the US Jobs report in May of 2018.
Now you scoff at a 60 month loan...that’s a five year car loan which is the term loan the majority of America uses to purchase a car.
Now you claim an 11 year old car is just a tragedy for an average American family...here is another piece of real information for you...the average age of a US car on the road today is 11+ years. Gee, sounds like that is the kind of car an average American family actually owns.
You are the one out of touch with the facts of average America. Move back to the cesspool that is the Trump Bashing thread...similar misinformed bobbleheading is rampant over there.
So we gave up trying to make america great again? Were satisfied with keeping america average?
You are boasting about what boils down to an extra $1 per day per person. There is no way around that. Its math. Family of four with an extra $147 per month
Stop trying to sugarcoat it. Stop trying to say america is now great because middle america makes an extra buck
Go watch Robocop and perhaps you will get it
Quote: darkozSo we gave up trying to make america great again? Were satisfied with keeping america average?
You are boasting about what boils down to an extra $1 per day per person. There is no way around that. Its math. Family of four with an extra $147 per month
Stop trying to sugarcoat it. Stop trying to say america is now great because middle america makes an extra buck
Go watch Robocop and perhaps you will get it
YOU GOT IT BACKWARDS!!!!!!! That family of four is only PAYING $1 per person per day in Federal taxes!!!!!!!! That's it!!!!! And yet you complain......
I will never understand the liberal/progressive/Democrat mind....
Quote: ParadigmIf you can’t make $22/hour in this economy by the time you are married and have two kids, not sure what to tell ya...you clearly made some pretty bad life choices along the way.
Oh, baloney... Not every job can pay that. It has nothing to do with "bad choices."
I have two degrees, multiple globally recognized certifications in my industry, and almost a decade of experience, and I barely make $20/hr. That's about average for someone in my position in my industry. Naturally it would go up a little with more experience or maybe in a HCOL area, but that's just what my career pays at my level, almost anywhere in the world.
Quote: SOOPOOYOU GOT IT BACKWARDS!!!!!!! That family of four is only PAYING $1 per person per day in Federal taxes!!!!!!!! That's it!!!!! And yet you complain......
I will never understand the liberal/progressive/Democrat mind....
How much would you prefer the two underage kids pay per day in taxes?
Quote: SOOPOOYOU GOT IT BACKWARDS!!!!!!! That family of four is only PAYING $1 per person per day in Federal taxes!!!!!!!! That's it!!!!! And yet you complain......
I will never understand the liberal/progressive/Democrat mind....
So what the hell is middle america complaining about if they only were paying $2 a day per person in taxes
If middle america has $70k per year and cant afford $300 a month to pay for infrastructure and building a nonexistent wall then they should move to russia
It sucks some of pay more than our “Fair Share”, but this was a step in the right direction. Cutting government spending needs to be the next step, but neither party has the courage to make the hard choices.
Instead of trying to figure out how to not give money to the government how about trying to figure out how to give less to business that doesnt deserve it
Like banks
Boasting of a 60 month car loan for an $11k car. News flash. You just purchased an $8k vehicle if lucky
How about saving up $8k in a bank account or a sock drawer and then saving $3000 paying for your car in cash?
I live completely debt free. You know how many thousands i save every year. SMH. Fiscally conservative while dumping thousands into banks for no reason
Quote: darkozRadical idea here
Instead of trying to figure out how to not give money to the government how about trying to figure out how to give less to business that doesnt deserve it
Like banks
You do realize what you meant to say, if you were trying to be honest, was the following.....
THE GOVERNMENT DOESN'T GIVE MONEY TO THE BUSINESSES. It is just taking less than it used to from them......... (For the purpose of this tax discussion).
And you are wise to live debt free..... No one owns you that way.....
Quote: SOOPOOYou do realize what you meant to say, if you were trying to be honest, was the following.....
THE GOVERNMENT DOESN'T GIVE MONEY TO THE BUSINESSES. It is just taking less than it used to from them......... (For the purpose of this tax discussion).
And you are wise to live debt free..... No one owns you that way.....
Precisely what im getting at
You are willing to pay $11k for an $8k car to the bank but want to live free of charge (no taxes or very little taxes) in america
Aside from a one-time cash infusion for your car the banks are leeching off you (you could have all the extra money you are so happy about saving in taxes by nkt paying on credit)
Yet I would argue we all get more in services from our government than we do from an interest-leeching bank
EDIT: and thanks for the compliment. I learned the hard way about how banks worked
Quote: Paradigm...and they don’t care about deficits and the National Debt...all they know is they got a new car with their tax savings.
And there’s the real issue. Cutting revenue and increasing debt would not be Making America Great Again. A lot of this stuff should be looked at like watching the NFL draft. We can debate it as it’s going on, but it will take at least a year (usually more like 3-5 years) to measure the true benefits and short-comings
Quote: darkoz
Yet I would argue we all get more in services from our government than we do from an interest-leeching bank
EDIT: and thanks for the compliment. I learned the hard way about how banks worked
I agree with your concept but not the way you phrase it. Banks are in business to make money, like every other business. "Interest leeching" is what they sell. As long as they are forthright about the costs and fees and requirements and penalties, etc., then I am happy banks exist and are willing to give someone money and hope they eventually give it back. If a bank lies/misleads then punish it. But don't punish it for doing the business that likely over 1/2 of America uses it for. I will never borrow money again, but would not want that option removed from others.
Quote: darkozRadical idea here
Instead of trying to figure out how to not give money to the government how about trying to figure out how to give less to business that doesnt deserve it
Like banks
Boasting of a 60 month car loan for an $11k car. News flash. You just purchased an $8k vehicle if lucky
I don't get what you mean by "businesses that don't "deserve" it. What are you saying there?
Bank loans serve a purpose. I could have paid cash for my last car but took a loan because the rate was just too good. The bank (credit union actually, but doesn't matter) offered me money at a price. I accepted that price. What is the problem?
SMH. "Deserve" it? Who is to decide that?
Quote: SOOPOOI agree with your concept but not the way you phrase it. Banks are in business to make money, like every other business. "Interest leeching" is what they sell. As long as they are forthright about the costs and fees and requirements and penalties, etc., then I am happy banks exist and are willing to give someone money and hope they eventually give it back. If a bank lies/misleads then punish it. But don't punish it for doing the business that likely over 1/2 of America uses it for. I will never borrow money again, but would not want that option removed from others.
I agree
Would not want options for other people removed. Im not advocating for the closure of banks
There are big money items you just cant pay in cash. Opening a business or buying a house.
Putting up skyscrapers. Financing feature films etc
But if a private individual is complaining they cant afford to lease a car unless they save thousands on their tax bill they could simply save the same amount by purchasing the car in cash
Problem is everyone wants it gimme gimme gimme now. I cant wait! Then complains they are broke due to wasting money
Anf I do feel spending $11k on an $8k car is wasting money
Quote: TigerWuI have two degrees, multiple globally recognized certifications in my industry, and almost a decade of experience, and I barely make $20/hr. That's about average for someone in my position in my industry. Naturally it would go up a little with more experience or maybe in a HCOL area, but that's just what my career pays at my level, almost anywhere in the world.
I am not sure what to say Tiger...the Jobs Report says you make 10% less than the average American worker...those are the facts.
Whoa, that's a 14% rate! Right now, I can get a used car loan from my credit union for 3.24%.Quote: darkozBoasting of a 60 month car loan for an $11k car. News flash. You just purchased an $8k vehicle if lucky
Quote: ParadigmI am not sure what to say Tiger...the Jobs Report says you make 10% less than the average American worker...those are the facts.
I am not saying those numbers are off but...
Averages must always be looked at with a grain of salt
For example:
If 10 doctors each makes $100k per year
And 40 mcdonalds workers make $20k a year
Then the average worker (using only above) makes
$36,000 approximately
That is the average for 50 workers combined but not what an average person makes
EDIT: FIXED FOR NUMBERS. my math was off :)
Quote: JoemanWhoa, that's a 14% rate! Right now, I can get a used car loan from my credit union for 3.24%.
Good for you
Not everyone has good credit. Maybe they fell on hard times. Maybe its their fault
Paying cash is 0%
0% is better than 3.4% in my book
I have had arguments over +EV worth pennies on the dollar here and now everyone wants to hand the banks money
Quote: SOOPOOAnd you are wise to live debt free..... No one owns you that way.....
Should the wisdom of the individual also extend to the group?
Quote: darkozI am not saying those numbers are off but...
Averages must always be looked at with a grain of salt
Average incomes are almost always given as median instead of mean to avoid the very distortions you showed
"For example:Quote: TomGAverage incomes are almost always given as median instead of mean to avoid the very distortions you showed
If 10 doctors each makes $100k per year
And 40 mcdonalds workers make $20k a year"
the median for those 50 workers is $20,000
the standard deviation for the 50 workers would be $32,000
more or less useful?
Sally
Quote: mustangsally"For example:
If 10 doctors each makes $100k per year
And 40 mcdonalds workers make $20k a year"
the median for those 50 workers is $20,000
the standard deviation for the 50 workers would be $32,000
more or less useful?
Sally
That makes sense but still looks like a distortion to me
If 40 people are making drastically less $20k and one fifth are making drastically more $100k. Saying thats the average american seems to still be distorted imo
I would argue if 5 times as many people are only making $20k. Then $32k is the mathematical mean average but not what the average american makes
But yes it was helpful. Thanks
Quote: darkoz
If 40 people are making drastically less $20k and one fifth are making drastically more $100k. Saying thats the average american seems to still be distorted imo
I would argue if 5 times as many people are only making $20k. Then $32k is the mathematical mean average but not what the average american makes
Argue it all you want, you can not deny the math.
Don't confuse "mean" and "median." Look at both and learn how to read what is really happening.
The higher the mean from the median means a few high earners are pulling things way up.
OTOH, if the mean is lower than the median, there are probably a lot of earners with $0 in earnings.
