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A comment on Chicago successfully taxes streaming services. Parent comment

Re:Chicago successfully taxes streaming services by closeparen on Saturday May 18, 2019 @02:15PM (#19948846)
$75k income, increasing at 1% a year, saving 15% each year, investing at 7% average returns over a 40 year career would give you $101k in retirement.

That doesn’t seem unreasonable.

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Re:Chicago successfully taxes streaming services by phonon on Saturday May 18, 2019 @02:22PM (#19948896)
Err, who earns $75k a year for 40 years?

40 years ago that person probably started off below $15k/year.

(In 1979 average household income was $19,553) https://www.multpl.com/us-average-income/table/by-year

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Re:Chicago successfully taxes streaming services by closeparen on Saturday May 18, 2019 @02:28PM (#19948922)
The calculation includes inflation. $20k in 1979 is $70k today.

It’s also the classic tradeoff of government work: lower salary than you could get in the private market, but retirement equivalent to a higher salary than you could get. Compelling only if you are sufficiently long term oriented.

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Re:Chicago successfully taxes streaming services by phonon on Sunday May 19, 2019 @03:37PM (#19955027)
I ran a few scenarios--your numbers are not correct.

Start at age 20, making $15,000/y, increasing 5% per year. (Salary at retirement over $100k/y)

Assume annual savings rate of 15%

8% return

Retire at 60.

I get around a million dollars saved at age 60 (i.e. today). Not enough to buy an annuity that pays out over $100,000/y. Off by a factor of 2 or so, I think.

And starting salary 40 years ago was probably under 15k, 8% consistent compounded returns are really good, the other retirement benefits besides the pension etc.

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Re:Chicago successfully taxes streaming services by sseagull on Saturday May 18, 2019 @02:33PM (#19948947)
Your calculations are a bit off, since even $75k * 0.15 * 40 = $450k (ie, not taking into account salary increases or returns).

Also, $75k is a lot more that most people make. From what I can find, that would be ~85th percentile of personal income, or around the 60th percentile of household income.

Edit: Some representative (although a bit outdated) sources:

https://en.wikipedia.org/wiki/Personal_income_in_the_United_...

https://en.wikipedia.org/wiki/Household_income_in_the_United...

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Re:Chicago successfully taxes streaming services by closeparen on Saturday May 18, 2019 @02:45PM (#19949013)
101k a year in income, more than $2m in total balance.

Chicago police officers make $65k within 18 months [0]. If $75k is a high estimate, it’s not by a ton. Government competes for professional/managerial/educated employees as well.

[0] https://www.chicagomag.com/Chicago-Magazine/The-312/August-2...

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