INCOME TAX RATES

Press, Volume XC, Issue 27410, 24 July 1954, Page 8

INCOME TAX RATES

EXPLANATION BY MR BOWDEN

“EVERY TAXPAYER WILL GET REDUCTION ” (New Zealand Press Association) WELLINGTON, July 23. The rates of income tax would now range fronr 3s to 12s in the £ instead of from 2s fid to 12s, with the gradu- • ations increasing by 3d in the £ on each £lOO of taxable income said the Associate-Minister of Finance (Mr C. M. Bowden) today, when he was asked to amplify the Budget statement that ■ the starting rate of income tax would be 3s in the £ instead of 2s fid. ; Mr Bowden was asked whether this did not mean that every person at present paying beyond the 3s rate a £ 100 would pay at fid more a £lOO than 1 formerly for the same income. To this question he replied in the affirmative. Every taxpayer, said Mr Bowden, would get a reduction of his present ■ taxation. There was no taxpayer. > whether an individual or a company ■ who would incur additional taxation as a result of this alteration in the Basic rate, which would be more than (Offset by the other relii®. Mr Bowden gave the following examples of the amounts, by which taxpayers with incomes up to £lB a week would benefit from the Budget Three income levels were taken for the illusions: £l2 a week (£824 a year); £l5 a week (£7BO a year); and £lB a week (£936 a year). In each case insurance premiums amounting to 5 per cent, of the income were taken into account.

Wage Single Man Last year This year Reduction £ s. d. £ s. d. £ 8. d. £12 37 12 1 34 4 6 3 7 £15 63 19 9 61 2 6 2 17 3 £18 93 3 9 90 9 6 2 14 3 Married Man with No Children £12 21 8 9 13 16 0 7 12 Q £15 45 18 2 38 8 6 7 9 8 £18 73 4 3 85 8 9 7 15 6 Married Man With One Child £12 11 9 8 8 18 8 2 11 0 £15 34 18 10 25 14 6 9 4 £18 60 15 11 51 7 6 9 8 5 Married Man with Two Children £12 2 6 5 Nil 2 6 5 £15 24 7 2 13 13 0 10 14 2 £18 49 2 9 38 1 8 11 1 3 Marrie Man with Three Children £12 Not payable. £15 14 7 3 2 8 0 11 19 3 £18 37 18 0 25 8 0 12 10 9