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Show Standard of Living Cost Doubles Today the average U.S. family must earn almost double its 1970 pretax income in-come to maintain a comparable com-parable standard of living, according to The Conference Hoard of the National Consumer Finance Ass. in Washington. D.C. 1 A family of four earning $i:i,20) in 1970 now requires over $25,000 to equal its 1970 purchasing power, according ac-cording to a report carried in the June issue of Finance Facts, a monthly newsletter on consumer financial behavior published lor finance companies by the National Consumer Finance Ass. In 1970. the family paid $375 in Social Security taxes and $1,525 in federal income taxes, leaving $11,300 in disposable income. Today's $25,000 family owes $1,400 in Social Security payments and $3,100 in federal income taxes. Of the $20,500 remaining, the family striving to keep up had to pay out $9,200 to accomodate rises in prices since 1970. As to whaj the U.S. family actually earns, the median family income will be $18,800 this year, up from $9,900 in 1970. This year's figure barely is keeping pace with inflation and taxes. The fact that the median family real income has grown by well under one percent annually since 1970 shows the average family at a disadvantage in the struggle to keep up. Federal income taxes have been cut regularly over the last nine years, but increasing in-creasing Social Security payments have more than made up the difference. |