What does “middle class trap” mean ?

Question

Hello

As someone with 0 economics knowledge but keen interest I keep hearing this term “middle class trap” and how it is bad for countries long term economy and its people. What does it mean and why is it harmful for a country’s long term prospects ?

Thank you

In: 467

Answer 1

It means you make good money, enough to pay a lot of taxes. But you don’t have enough to avoid taxes by writing if off when buying property every year and such. Basically you make enough money to pay substantial taxes but not enough to avoid it