Appendix F(3) (cont'd)

(ii) BROAD EFFECT OF THE INCREASE IN ADDITIONAL PERSONAL

ALLOWANCE ON SINGLE AND MARRIED TAXPAYERS

No. of

taxpayers

Single

Full benefit

(ie those with income below

$36,000 or with total

67 000

allowances in excess of their income)

Partial benefit

340 000

(ie those with income between

$36,001 and $105,999)

No benefit

34 000

(ie in situation where income

exceeds $106,000, clawback exhausts allowance)

No effect incane subject to

standard rate of 15%

13 000

Married

Full benefit

26 000

(ie those with incane below

$74,000 or with total

allowances in excess of

their income)

Partial benefit

147 000

(ie those with income between

$74,001 and $213,999)

No benefit

32 500

(ie in situation where income

exceeds $214,000, clawback

exhausts allowance)

No effect

A

income subject to

40 500

standard rate of

15%

TOTAL

700 000

-54-

Remarks

This group receives full benefit from the increase in personal allowance.

This group receives partial benefit from the increase in personal allowance but the full benefit of the revision to the marginal tax rates.

This group receives no benefit from the increase in personal allowance but the full benefit of the revision to the marginal tax rates.

Standard rate taxpayers.

This group receives full benefit from the increase in personal allowance.

This group receives partial benefit from the increase in personal allowance but the full benefit of the revision to the marginal tax rates.

This group receives no benefit from the increase in personal allowance but the full benefit of the revision to the marginal tax rates.

Standard rate taxpayers.

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