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20% down on a 3 million dollar home is $600k. If they can't save that much in 5 years making $500k/yr, dare I say they're really not trying hard enough? say you only see half of that 500k after taxes (which is low since that 500k isn't cash comp and you wait for long term capital gains to kick in). $250k/yr - saving $120k, still gives you $130k post-tax,
or $10,800/month to rent, pay for groceries, utilities, fuel, retirement, entertainment, everything else. People are living on half that,
if not less. $3,000/month? $2,000? Saying that $500k doesn't go very far just because they have to have the $3,000,000+ house isn't likely to garner much sympathy. Oh no, it's going to take a couple of years to save up for the down payment on a $3 million house. How about not making enough to be able to save for a down payment on any house in the prime parts of the Bay Area! $500k/yr is enough to buy a lot of luxuries that are denied to those making $50k/yr, and it's stupid to try and deny it. But that's simple jealousy. Some software person at Google writing ad software isn't the one that moved manufacturing jobs out of America, nor do they have the power to bring them back. They can't vote on a tarrifs or fund a stimulus in Congress to help American workers. They don't set public policy at all. The best they can do at stealing from the government is to cheat a bit on their taxes, or be a NIMBY after they've bought that house. |
> which is low since that 500k isn't cash comp and you wait for long term capital gains to kick in
Stock that a company gives you as compensation is treated as ordinary income at the time it vests, based on the value when it vests. If your total comp is $250k salary + $1M in stock over four years, and the stock value stays flat, your taxes are the same as if you got $500k in salary each year (a bit worse, actually, because of the first year vesting all at once making your income $250k and then $750k); if it doubles the day after your grant and stays flat after that, your taxes are the same as if you got $750k in salary each year. Long-term capital gains only apply to increases in stock value after it vests - not any different than if you sold your company stock immediately and bought another stock.