6.2.87
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subject to a 10% clawback (48). By reintroducing the
clawback, I am able to focus the proposed allowances more
fully on the less affluent of those who pay salaries tax
or elect for personal assessment. The clawback will
operate to reduce the allowance by 10% of the amount by
ich a taxpayer's income exceeds $34,000 in the case of a
Thus, single person and $70,000 for a married couple.
when a single person's income reaches $84,000 and a
married couple's $170,000, the additional personal
allowance will have been exhausted by the clawback (49).
(48)
(49)
Under the provisions of section 42B(1)(aa) and (bb) of the Ordinance.
In other words, for every dollar of income in excess of $34,000 for a single person and $70,000 for a married couple, 10 per cent of the additional allowance will be recovered, or clawed back, until the allowance is eliminated and at that level of income the taxpayer only enjoys the basic personal allowance.
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