So Paul Ryan, speaker of the House, tweeted this…
Let’s meet Cindy, shall we? At $30,000 she’s living paycheck to paycheck.
If we divide that massive windfall of $700 into 52 paychecks, she now makes (not takes home) an additional $13 a week.
Yeah that’s future-proofing, Mr. Ryan.
But let’s assume that this woman living paycheck to paycheck saves ALL of that $700 a year.
If she’s 25, and retires at 65, that’s 40 years of $700 a year. That’s $28,000 in savings when she retires assuming all other things stay constant.
If she’s living paycheck to paycheck on $30,000, saves EVERY dollar of your “cut” to her taxes, and keeps saving for 40 years, she’ll not have enough to live her current paycheck to paycheck lifestyle based on inflation being where it is today.
Good plan, sir. Good plan.