+
WEDNESDAY, FEBRUARY 25, 1981
HIS PACKAGE OF PROPOSALS, IF APPROVED, WILL BE EFFECTIVE FOR FINAL SALARIES TAX AND PERSONAL ASSESSMENTS FOR 1980-81 AND FOR PROVISIONAL SALARIES TAX FOR 1981-82.
HIS CONCESSIONS FOR PERSONAL TAXATION ARE MADE UP OF AN INCREASE IN THE LEVEL OF PERSONAL ALLOWANCES FROM $12 500 TO $15 000 FOR SINGLE PEOPLE AND FROM $25 000 TO $30 000 FOR MARRIED PEOPLE, AND SUPPLEMENTARY PERSONAL ALLOWANCES TO INCREASE FROM $2 500 TO $7 500 FOR SINGLE PEOPLE AND FROM $5 000 TO $15 000 FOR MARRIED PEOPLE.
HE ALSO PROPOSED THAT THE CLAW-BACK CONTINUE TO BE ZERO RATED MEANING THAT TAXPAYERS AT ALL LEVELS OF INCOME WILL ENJOY THE FULL BENEFIT OF THE SUPPLEMENTARY PERSONAL ALLOWANCES, SAVE THOSE ON HIGH INCOMES TO WHOM THE STANDARD RATE APPLIES.
+THE EFFECT OF THE PACKAGE, SAID SIR PHILIP, +WILL BE TO EXEMPT 85 000 PEOPLE PREVIOUSLY LIABLE TO SALARIES TAX AND ANOTHER 55 000 WHO WOULD HAVE BECOME LIABLE IN 1981-82 BUT WHO WILL NOW REMAIN OUT OF THE TAX NET.
+THUS THE NUMBER OF SALARIES TAXPAYERS FOR THE YEAR OF ASSESSMENT 1981-82 WILL BE 255 000 AS OPPOSED TO THE 395 000 PRESENTLY ENVISAGED IN THE NET WITHOUT THIS PACKAGE OF CONCESSIONS.
+ADDITIONALLY, 237 000 OF THESE TAXPAYERS WILL BENEFIT BY WAY OF REDUCED LIABILITY. THE REMAINING 18 000 OR SEVEN PER CENT OF THE TOTAL NUMBER OF TAXPAYERS LEFT IN THE NET WILL NOT BENEFIT FOR THEY WILL REMAIN ON THE STANDARD RATE OF 15 PER CENT AND THIS GROUP WILL CONTINUE TO CONTRIBUTE WELL OVER HALF OF THE TOTAL YIELD FROM SALARIES TAX,+ SAID SIR PHILIP.
+SO MUCH FOR THE CLAIM THAT THE LESS WELL PAID SUBSIDIES
THE BETTER OFF,+ HE SAID.
HIS TAX CONCESSIONS, IF IMPLEMENTED, WOULD RAISE THE LIMIT OF THE STANDARD RATE ZONE OF 15 PER CENT FROM $87 500 TO $106 250 FOR A SINGLE PERSON ON A SCALE TO A MARRIED TAXPAYER WITH NINE CHILDREN FROM $172 000 TC $222 500.
+ I WOULD EARNESTLY SUGGEST,+ SAID SIR PHILIP, THAT THIS PACKAGE OF PROPOSALS WILL MEET THE CLAIMS OF THOSE WHO ARGUE THAT THE LOW INCOME EARNER IS IN DIRE NEED OF RELIEF FROM HIS TAX BURDEN', ALTHOUGH I WOULD DENY THAT THE LOW INCOME EARNER IS SIGNIFICANTLY AFFECTED BY OUR SALARIES TAX SYSTEM AT ALL. THE PACKAGE WILL ALSO AFFORD CONSIDERABLE RELIEF FOR THOSE WHO CLAIM TO BELONG TO THE SANDWICH' SOCIETY AND TO MIDDLE INCOME EARNERS AS WELL FOR, EVEN THE IR TAX LIABILITY IS, TERMS, VERY MODEST COMPARED WITH THE IR OTHER PERSONAL LIABILITIES.+
IN PERCENTAGE
SIR PHILIP DREW ATTENTION TO THE VERY CONSIDERABLE RELIEF+ OUTLINED IN HIS TABLES: A SINGLE PERSON ON AN ANNUAL INCOME OF $23 500 WOULD PAY $50, A REDUCTION OF $375 ON HIS PRESENT LIABILITY OF $425. A MARRIED PERSON WITH AN ANNUAL INCOME OF $46 000 WOULD PAY $50 A REDUCTION OF $1 050 ON HIS PRESENT LIABILITY OF $1 100 WHILE A MARRIED PERSON WITH TWO CHILDREN AND WITH TWO DEPENDENT PARENTS ON AN ANNUAL INCOME OF $72 000 WOULD ALSO PAY $50, A REDUCTION OF $1 900 ON HIS PRESENT LIABILITY OF $1 950.
/SIR PHILIP