The government’s definition of rich is a household making more than $250,000 per year. Sounds great in theory but for someone making that much in a year in Montana as compared to someone making the same amount in Chicago or New York or LA the benefits of the largesse differ.

When President Obama said he would raise taxes on the wealthy, he set the increases to start at an income of about $250,000. Gov. Paterson recently worked out a rise in New York’s state income tax that takes effect at the same level. If all that those politicians mean by “rich” is the small portion of the population at the top of the economic heap, then households making over $250,000 is a fair definition: Only about 5% of U.S. households have annual incomes over $200,000. 

The people who are making more than 95% of the rest of the citizens may not feel right but they are. Since a quarter of a million dollars is just a starting point for the wealthiest Americans this is the upper portion of Americans. Most Americans who are making more than $250k annually do not have a problem with necessities as those making a tenth of that would, regardless of location. A family income of $25k annually struggles more than the more wealthy.

The increased amount of taxes that a person making $250k a year would pay is a small amount. The more you earn the more you pay in taxes – only seems fair.

Even if someone has millions of dollars and spends it unwisely – as we have seen many sports stars do – only to become impoverished in a short time after making huge salaries. Wise spending at any income level helps make a person wealthy.