Wednesday, October 12, 2011

Billionaires and Millionaires

I think the Obama administration's definition of millionaires and billionaires is interesting.

To me, millionaires have over $1,000,000 net worth. Billionaires have over $1,000,000,000 in net worth.  Some people may have a less stringent definition.  Instead of net worth, they use asset value, which doesn't account for debt.  In both cases, the basis is still having a million or a billion dollars, in net worth or assets.  

I had never heard the definition of a millionaire or billionaire being someone making $200,000 (single) or $250,000 (married).   As far as know, neither had anybody else who has good understanding of finances.

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rjreimer said...

Who told you that was this administration's definition? I know Obama talked about a tax on those making money at the $200/250 K level, and then recently the Senate tried to fund his jobs bill with a higher tax on those making over a million, but the only thing linking these two is a calendar -- one came first, the other came second. Confusion of facts is the easiest way to sway others; I suggest you try and find something, anything, from the administration saying these are the same thing, or that anyone there thinks a millionaire is someone making 200/250K.

Super Saver said...

You're correct. No one in the administration directly said making $200/$250K means the person is a millionaire or billionaire. However, President Obama constantly talks about increasing taxes or eliminating tax cuts for "millionaires and billionaires." As you point out, the specifics are a tax increase or eliminating tax cuts for those making $200/$250K. These two points seem to equate millionaires and billionaires with those making over $200/$250K. Seems the Obama adminstration is the one using confusion of facts to sway others:-)

AS said...

What a misleading and dishonest post.

As conceded by the blog owner, the Obama administration didn't define millionaires or billionaires as someone making 200K/250K for single/married.

Yet the blog owner clearly wanted that conclusion drawn. Dishonest and unethical. The type of thing that would be done by a cable TV news network owned by an Australian billionaire.

The blog owner should withdraw the original post.

Financial Independence said...

While income $200/250K is certainly not a definition of a millionaire, it is very plausible to suggest that s/he is one.

Two reasons:
- It is not a starting salary in most of the cases, so one accumulated some wealth by getting to that stage.
- It fairly easy to accumulate a million being on that sort of salary.

I think if we would have access to statistic, we would realize that Obama just might be right - who ever earn $250/200 own a million dollars with rare exceptions.

I think you are right, pointing that Obama want "social justice". But it is very difficult to balance and not scare away capital..