Nick Maggiulli discusses the emergence of six new economic classes in the US, highlighting the rapid growth of the upper middle class (Level 4) and its associated challenges, including resource competition and a sense of relative wealth decline, despite overall economic success. He emphasizes the importance of asset ownership and adaptability in personal finance amidst changing economic dynamics.
The new tax law signed by President Trump offers some benefits to the upper-middle class, such as increased standard deductions and extended QBI deductions, but also maintains limitations like the SALT deduction cap and reduced mortgage interest deductions, which may result in higher taxes for some in this income bracket.
In New York state, an annual household income of at least $131,566 is required to be considered upper-middle class, with higher thresholds in neighboring states like New Jersey and Connecticut, and even higher in Massachusetts and Maryland, reflecting regional differences in living costs and economic conditions.
