Earlier quoted context omitted.
There is no way you owe $7500 in federal taxes on a $40k/year salary. In the worst case (single or married filing separately; in this range the numbers look the same), the standard deduction is $6350 and the single personal exemption is $4050 in 2017. So your taxable income is $29,600 assuming you aren't putting any pre-tax money into retirement savings. The 10% tax bracket for those filing statuses goes to $9325 in…
> To get to $7500 in tax you have to have about $47k of taxable income, and hence about $57k of gross income The OP said “most people don’t pay $7500...” which is not true since I said you have to have “at least 40K+ salary in order to afford that $35k+ car. I did not say you have to have 40k salary to pay 7500$+ in taxes
I have no opinion on what the actual incomes are of people who buy $35k cars, because I don't have any data to that effect. I'd really _hope_ they all make more than $57k/year gross, but given the weird things people do with debt I'd love to see actual data on this point.