22
WEDNESDAY, MARCH 3, 1993
FIRST,
то
TO INCREASE THE BASIC AND MARRIED PERSON ALLOWANCES BY NEARLY 22% (FROM $46,000 TO $56,000 AND FROM $92,000 $112,000 RESPECTIVELY).
"THESE INFLATION. CONCERNS
"
RATE INCREASES ARE MORE THAN DOUBLE THE CURRENT
MEETING THEY SHOULD GO A LONG WAY TOWARDS
WELL OF RELATIVELY LESS WELL-OFF TAXPAYERS AS THE SANDWICH CLASS, THE FINANCIAL SECRETARY SAID.
OF
THE
AS
SECONDLY,
SECOND $17,000.
TO INCREASE CHILD AND
FOR
THE THE ALLOWANCES FOR
AND DEPENDENT PARENTS TO A STANDARD
FIRST
"IN
THE CASE OF THE SECOND CHILD, THIS IS AN NEARLY 50%,"
INCREASE
OF
THIRDLY, TO
BY MORE
INCREASE THE SINGLE-PARENT ALLOWANCE THAN 17% (FROM $23,000 TO $27,000).
EASE CONCESSION WILL
THE SPECIAL
DIFFICULTIES
"THIS THE SINGLE PARENT FACES IN BRINGING UP A FAMILY.
WHICH
MR MACLEOD
THESE SAID
IMPROVED
ALLOWANCES
MEAN WOULD
A
WAS
THE
FOR A
SUBSTANTIAL LOSS IN REVENUE. NEVERTHELESS, THE FINANCIAL POSITION
то STRONG ENOUGH
ALLOW HIM TO GO EVEN
IN FURTHER
REDUCING COMMUNITY'S TAX BURDENS IN LINE WITH THE REQUESTS OF MEMBERS REVIEW OF TAX BANDS.
AT
HE EXPLAINED THAT UNDER THE PRESENT SYSTEM, TAX BANDS WERE
(AFTER FOUR LEVELS. THE FIRST $20,000 OF SALARIES INCOME ALLOWANCES INTO ACCOUNT) WAS TAXED AT 2%; THE NEXT $20,000 AT 9%; OF AMOUNT THIRD AT 17% AND THE REMAINDER AT 25%. THE PAYABLE WAS, HOWEVER, SUBJECT TO A LIMIT OF 15% THE SO-CALLED STANDARD RATE.
SET
TAKING
THE
TOTAL
TAX
"THERE
IS
OF
THE REASON
PORTIONS OCCASIONALLY CONFUSION AS TO WHY SOME SALARIES ARE TAXED AT RATES HIGHER THAN THE STANDARD RATE. IS THAT THE COMBINED EFFECT OF THE ALLOWANCES AND THE TAX BANDS IS TO PRODUCE A SYSTEM UNDER WHICH THE EFFECTIVE TAX RATE-THE PERCENTAGE OF
PROGRESSIVELY PAID TOTAL SALARY ACTUALLY INCREASED SALARY INCOME, UNTIL EVENTUALLY (FOR A SMALL TAXPAYERS) 1T REACHES 15%.
-
RISES
IN
WITH LINE MINORITY OF
BANDS,
THOSE
SPEAKING, THE
** I PROPOSE THIS YEAR TO WIDEN THE SECOND AND THIRD TAX FROM $20,000 TO $30,000. THIS WILL BE OF PARTICULAR BENEFIT TO EARNING BETWEEN $10,000 AND $40,000 A MONTH - ROUGHLY SANDWICH CLASS AND THOSE WHO FALL JUST OUTSIDE IT.”
AS A RESULT OF THESE MEASURES:
* A TYPICAL SINGLE INCOME FAMILY OF FOUR WILL HAVE MORE THAN $483,000 A YEAR BEFORE PAYING TAX AT THE RATE, COMPARED WITH $391,800 AT PRESENT,
ΤΟ BARN STANDARD
56%
THE SALARIES TAX BILL FOR A TYPICAL SANDWICH CLASS FAMILY OF FOUR, EARNING $18,000 A MONTH, WILL BE REDUCED BY OVER (OR OVER $8,000), AND
/* A SIMILAR