with 55000 yearly salary and became homeless

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. 

Leave a Reply