Since the Presidential campaign started, which seems like it was years ago at this point, President Obama has been talking about tax hikes on the upper class Americans. The definitions of upper class have been fuzzy, but at one point the President labeled Americans with an income of $250,000 or more each year as upper class.

Most of us would agree that being in the top 2% of earners in the country would classify one as a member of the upper class. However, those with incomes in that range would argue that they are struggling just as much as anyone else during this recession. Admittedly their idea of struggling is different than most Americans-they have a lifestyle that requires a higher income. But consider the disadvantages of being an upper class American.

Real Estate: If you own a home, you have probably seen the value of your home drop over the past two years. These unrealized losses can be stressful, but imagine owning multiple properties. This usually means multiple mortgage payments, and falling home values have led to declining equity for the homeowners. Trying to get out from under some properties in popular vacation destinations has been next to impossible.

Education: The costs of a college education are rising and when you have an income around $250,000, it’s difficult to get any type of financial aid. This means that many upper class Americans pay for their children’s college costs out of pocket as they are accrued. This takes a significant portion of annual income for most upper class Americans.

Taxes: A high annual income means that you’re in the highest tax brackets, meaning that you take home a smaller percentage of your income than anyone else. The economic stimulus being put in place to rescue the economy today will have to be paid for tomorrow, and the party in office has made it clear when asked which taxpayers will bear the brunt of this burden. Promising tax cuts for everyone except the upper class, taxes are sure to become an even bigger challenge in the future for upper class Americans.

These are problems that most of us would gladly take on if we were able to earn a $250,000 income, but it’s interesting to see the way some financial challenges are magnified for the highest income individuals and families in this country.

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Tags: Education, Income, taxes, Upper Class

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