I heard during a conversation that a single mother with one child making 5,5000 a year became homeless in Columbia. I know Columbia is an expensive place to live at. But becoming homeless is unimaginable. Maybe 55000 is not enough. Then I researched the living wage at Columbia
http://livingwage.mit.edu/counties/24027
| Hourly Wages | 1 Adult | 1 Adult 1 Child | 1 Adult 2 Children | 1 Adult 3 Children | 2 Adults (One Working) | 2 Adults (One Working) 1 Child | 2 Adults (One Working) 2 Children | 2 Adults (One Working) 3 Children | 2 Adults | 2 Adults 1 Child | 2 Adults 2 Children | 2 Adults 3 Children |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Living Wage | $12.36 | $25.48 | $29.58 | $36.59 | $19.28 | $23.24 | $25.80 | $28.67 | $9.64 | $13.82 | $16.13 | $18.59 |
| Poverty Wage | $5.00 | $7.00 | $9.00 | $11.00 | $7.00 | $9.00 | $11.00 | $13.00 | $3.00 | $4.00 | $5.00 | $6.00 |
| Minimum Wage | $7.25 | $7.25 | $7.25 | $7.25 | $7.25 | $7.25 | $7.25 | $7.25 | $7.25 | $7.25 | $7.25 | $7.25 |
So 25.48*2800 = 71344. So we need 30% salary increase to get the living wage for the single mother.
However, when the salary increases, at least 30% will be taxed. That means another extra 30% increases should be added to the original 30% increase.
So in total, (1.3*1.3-1)*100 = 69% of salary increase is expected. When can we expect that?
As one kind reader pointed out, I made a mistake. (25.48*2080= 52998.4). Made a mistake by multiplying 2800 here.
So the salary is already above the living wage. I am wondering what we can do for the mother or the mother should make a better personal decision.