This is the simple fact that our political class (who are mostly rich) fails to grapple with. I think they see the world as acombination of the way their peers see it (and they're mostly rich!), some 30 year old vision of Middle Class America, and The Poors. They don't get that middle class America are increasingly becoming like the poors. Maybe a bit more money, maybe a bit better lifestyle, but living paycheck to paycheck with student debt and one financial (medical, etc..) event away from nothing.
Of course these middle classish people with a bit more money than the poors should just be more frugal! Skip that frappuccino, get a flip phone, don't go out for drinks after work with your coworkers. But that's not how life works in practice. You can't fully avoid the social expectations of your peers. Having a "real" job requires a decent wardrobe, a phone that can bug you with your email 24/7, and after work socializing for networking purposes. A few happy hours aren't between people and a good retirement, student debt and the fact that The Rent Is Too Damn High are.
I'm sure we can throw a few more credits into the tax code and that will solve everything.
