<p>Yep!! You’re right. But also you have to keep in mind that these income statistics are based upon the costs associated with employment. For example:</p>
<p>A family of 4 has a wife who works at XYZ Elementary School in XYZ Washington. She has gold-plated healthcare benefits which cover every medical procedure under the sun, even those which she has no need or desire to use. As a result, her total compensation package (as in the case of the woman who famously debated NJ Gov. Chris Christie) is over $80,000 a year even though she doesn’t see a lot of that in her paycheck. Now, imagine that as a result of these great benefits and job security the husband takes a riskier job and say it pays off well for him. He was able to earn $150,000 a year. But then, one of the kids has a health issue which requires them to have ongoing treatment in the amount of $30,000 a year in expenditures. According to the way the labour statistics are kept, you now have a woman whose total compensation is $110,000 a year who is actually taking home $41,000 a year with $39,000 a year in (largely) unrealized benefits.</p>
<p>Such a system is how you can have politicians talking about how teachers are overpaid (in total compensation packages) and teachers saying they’re underpaid (in salary) and have both of them actually be right!! A Seattle Public School teacher cannot afford to purchase a home in her own district, but the school district is wayyy overpaying compared to benefit received. </p>
<p>Such a distortion is as a result of a problem with the tax code. Cochrane from U of Chicago wrote about it recently, I’ll try to find it. COULDN’T FIND THE SPECIFIC ARTICLE, HE HAS WRITTEN TONS ON THE SUBJECT. <a href=“http://faculty.chicagobooth.edu/john.cochrane/research/papers/wsj_health.pdf[/url]”>http://faculty.chicagobooth.edu/john.cochrane/research/papers/wsj_health.pdf</a></p>
<p>But that one makes a good point. He cites how unfair it is that big business gets tax breaks that normal people don’t.</p>
<p>My point is that, in this (non-fictional) scenario, elementary teacher XYZ and the school district would both be better served by having her covered by $30,000 less in insurance coverage and taking home $15,000 more in pay. Or, by taking pay in the amount of 80% of original cost and then being able to buy a personal policy, with tax reformed benefit, of $6,000 a year for her family and still have a taxed take-home of $58,000 a year. That would be a net-benefit of $17,000 a year to the teacher and $16,000 a year to the school district/taxpayers. The only ones who would hurt would be the $33,000 a year in lost payment to the insurance company to possibly offset the chance of that $30,000 healthcare issue from the child. It’s not certain such a health problem would happen, so the system’s distortion is to the benefit of the insurer and to the detriment of all others involved.</p>
<p>Below is an extreme example, but it speaks to the general malaise I describe, albeit with more prominent examples.</p>
<p>[Teachers</a> in cash-strapped US school district get free plastic surgery - Telegraph](<a href=“Teachers in cash-strapped US school district get free plastic surgery”>Teachers in cash-strapped US school district get free plastic surgery)</p>