52% of NET INCOME FOR RENT in CALIFORNIA?
Democrat Economy in California!
37% rental rates, whether Californians qualify for income-restricted rentals or not, is outrageous. Most working Californians pay nearly 20% of their gross wages in Federal, State, SDI, Social Security and Medicare taxes, not to mention the high cost of medical premiums, shared or not with employers. Employers cannot afford to give pay increases to keep up with the cost of living in California!
Do the Math!
How did I come up with 37% of gross annual income? Well, there's an income-restricted complex here in town. It's $960.00 p/mo. for a 2-bedroom apartment. Maximum income limit is $31,000.00 annually = 37%.
I rent a 2-bedroom apartment and the rent is being increased to "market" of $1,419.00 p/mo. I took my annual income of $46,000.00 and sure enough = 37%.
Example: Single Mom with 1 minor child:
$46,000.00 annual income (gross)
Notice: NO CAR PAYMENT
- 5,400.00 annual medical premiums for two
= 40,600.00 taxable income
- 8,120.00 20% annual withholdings
= 32,480.00 NET
- 17,020.00 37% GROSS annual RENT
= 15,460.00 Living income
- 15,312.00 annual cost of basic living expenses
= 148.00 to pay auto registration and maybe an oil change!
RENT = 52% of my NET income!
Basic Monthly Living Expenses:
Water, sewer, garbage = $45
Electric = $100 average
Renters, Life and auto insurance $185
Gas to get to work $150 (based on current gas prices - God forbid they reach nearly $5 p/gallon again?)
Cell phones for two $190
Internet only (not even TV) $56
Food for two $550
Total annual cost of living = $15,312.00!
One critical emergency with my daughter in 2015 cost me $6,000 in medical co-pays and deductibles.
One trip to the emergency room this year for my daughter = nearly $900 in co-pay/deductible!
Plea to California Senators!
Do you see that Californians are being driven into financial crisis?
YOU MUST DO SOMETHING ABOUT RENT LEVELS! I certainly can't BUY anything when the banks are requiring at least 3-20% down and property taxes continue to rise. Is California going to be made up of the very rich (those who rent to the poor souls that are at their mercy) and those making fairly decent wages being driven into poverty?
YOU write the LAWS. PLEASE, PLEASE DO SOMETHING for ALL Californians!!
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