56
(iv) EXAMPLES OF THE EFFECT THE PROPOSED INCREASE IN PERSONAL ALLOWANCE,
REDUCTION IN THE STANDARD PATE AND REVISION OF THE MARGINAL TAX RATES
WILL HAVE ON SALARIES TAX AT VARIOUS INCOME LEVELS
Single person
Proposed tax payable (Exemption level: $36,000)
Present tax payable (Exemption level: $34,000)
Amual income
Effective
Effective
Tax saving
Amount
rate
Amount
rate
(A)
(B)
(A) - (B)
($)
($)
(%)
($)
(%)
($)
(%)
35,000
55
0.2
55
36,000
110
0.3
110
100.0 100.0
38,000
220
0.6
66
0.2
154
70.0
48,000
1,040
2.2
492
1.0
548
52.7
60,000
2,790
4.7
1,476
2.5
1,314
47.1
72,000
4,860
6.8
2,952
4.1
1,908
39.3
84,000
7,500
8.9
5,004
6.0
2,496
33.3
96,000
10,250
10.7
7,560
7.9
2,690
26.2
105,000
12,500
11.9
9,875
9.4
2,625
21.0
Remarks
Appendix F(3)(cont'd)
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.
106,000
12,750
12.0
10,150
9.6
2,600
20.4
120,000
16,250
13.5
13,650
11.4
2,600
16.0
132,000
19,250
14.6
:
16,650
12.6
2,600
13.5
144,000
22,250
15.5
19,650
13.6
2,600
11.7
(161,765)
26,691
16.5
This group receives no benefit from the increase in personal allowance but the full benefit of the revision to the marginal tax
24,091
14.9
2,600
9.7
rates.
168,000
27,720
16.5
25,650
15.3
2,070
7.5
(172,105)
28,397
16.5
26,676
15.5
$1,721
6.1
Standard rate taxpayers.
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