XN000022-1993-03-03 — Page 48

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