+
IMPACT OF SALARIES TAX PROPOSALS
(i) BROAD EFFECT OF THE NEW ADDITIONAL
PERSONAL ALLOWANCE SUBJECT TO 10%
CLAWBACK ON SINGLE AND MARRIED TAXPAYERS (expressed in terms of number of taxpayers)
Single
Full benefit
(i.e. those with income below $34,000
or with total allowances in excess of their income)
Partial benefit
(i.e. those with income between $34,001 and $83,999)
No benefit
Appendix E(3)
No. of taxpayers
83 500
280 500
(i.e. in situation where income exceeds $84,000, clawback exhausts new allowance)
51 500
(However, this group
will benefit from the adjustment to the 3rd tax band)
No effect
income subject to standard rate of 161/2%
10 500
Married
Full benefit
(i.e. those with income below $70,000 or with total allowances in excess of their income)
52 000
Partial benefit
(i.e. those with income between $70,001 and $169,999)
99 000
No benefit
(i.e. in situation where income exceeds $170,000, clawback exhausts new allowance)
43 500
(However, this group
will benefit from
the adjustment to the 3rd tax band)
No effect
income subject to standard rate of 161/2%
32 500
Total
653 000
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75
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