Middle class? Depends who you ask in Congress
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Illustration: Annelise Capossela/Axios
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.
