- 58 -
Annual in come
Present tax payable (Exemption level: $87,273)
Effective
Tax
Appendix F(3) (cont'd)
(vi) EXAMPLES OF THE EFFECT THE PROPOSED INCREASES IN PERSONAL AND CHILD ALLOWANCES, THE INTRODUCTION OF A WORKING WIFE ALLOWANCE OF
$15,000, REDUCTION IN THE STANDARD RATE AND REVISION OF THE MARGINAL TAX RATES WILL HAVE ON SALARIES TAX AT VARIOUS INCOME LEVELS
Married person, with two children
Proposed tax payable (without work- ing wife) (Exemption level: $92,636)
Effective
Proposed tax payable (with working wife) (Exemption level: $106,273*)
Effective
Tax
Amount
rate
Amount
rate
saving
Amount rate
(A) ..:
(B)
(A) - (B)
(c)
saving (A) (c)
Remarks
14 ($)!
($);
(%)
($)
(%)
($)
(%)
($)
(%)
192,000
260
0.3
260
100.0
1:94,000
370
0.4
45
0.1
325
87.8
96,000
480
0.5
111
0.1
369
76.9
($)
(%) 260 100.0 370 100.0 480 100.0
This group receives full bene-- fit from the increase in
personal allowance and the working wife allowance.
'70
108,000
1,920
1.8
714
0.7
1,206
62.8
57
0.1
1,863
97.0
120,000
3,900
3.3
1,812
1.5
2,088 53.5
606
0.5
3,294
84.5.
132,000
6,340
4.8
3,495
2.6
2,845 44.9 1,647
1.2
4,693
74.0
A
144,000
9,100
6.3^! 5,670 3.9
3,430 37.7
3,225
2.2
5,875
64.6
156,000
12,400
7.9
8,337
5.3
4,063 32.8
5,346
3.4
7,054
56.9
168,000
15,700
9.3
11,625
6.9
4,075 26.0
7,959
4.7
7,741
49.3
180,000
18,750
10.4
14,925
8.3
3,825 20.4
11,175
6.2
7,575
40.4
This group receives partial benefit from the increase in personal allowance but the full benefit of the revision to the marginal tax rates and
192,000
21,750
11.3
18,225
9.5
3,525 16.2
14,475
7.5
7,275
33.4
the working wife allowance.
204,000
24,750
12.10). 21,525
10.6
3,225 13.0
17,775
8.7
6,975
28.2
213,000
27,000
12.7
24,000
11.3
3,000 11.1
20,250
9.5
6,750
25.0
:
214,000
27,250
12.7
24,275 *11.3
2,975 10.9
20,525
9.6
6,725
24.7
228,000
30,750
13.5
27,775 12.2
2,975 9.7
24,025
10.5
6,725
21.9
*240,000
33,750
14.1
30,775 12.8
252,000
36,750
288,000
45,750
' 14.6 *33,775 15.9 42,775
Ampfo
13.4 14.9
2,975 8.8 2,975 8.1 30,025 2,975 6.5
27,025 11.3
6,725
19.9
11.9.
6,725
18.3
39,025
13.6
6,725
14.7
This group receives no benefit from the increase in personal allowance but the full benefit of the revision to the marginal tax rates and the working wife allowance.
(307,631) (308,823) (347,105)
50,657 · 50,955
16.5
47,682 15.5
57,272
16.5
16.5
47,867 15.5 3,088 1 6.1 53,80115.5"** 3,471 6.1
2,975 5.9
43,932
14.3
6,725
13.3
44,230
14.3
6,725
13.2
Standard rate taxpayers.
53,801
15.5
3,471
6.1
The examples shown above are calculated on the basis that the wife's income is in excess of the Working Wife Allowance of $15,000 (3)(crur, $)
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