NEW INCOME TAX

Evening Post, Volume CXII, Issue 86, 8 October 1931, Page 15

NEW INCOME TAX

HOW IT FALLS GRADUATION STEEPENED DETAILED ANALYSIS The effect of the taxation changes involved in the Supplementary Budget, taken in conjunction, of course, with the proposals brought down two months ago by Mr. Forbes, is better appreciated from actual calculations of the amounts payable on the various taxable amounts. ' ' , , Tho main effect of the changes so far as income is concerned is that there is a much steeper graduation of tax on incomes over tho £260. exemption mark. The scale of taxation imposed last year is being increased by the .alteration of the graduation affecting all incomes between £260 and £900, and 'by the increase in the surtax from 10 to 30 per cent. Another chango involved in the proposals brought down this week is the abolition of the 10 per cent, doduction in the case of earned income. The new surtax of 4d in the £ on incomes in excess of £500 makes a further substantial alteration to the proposals advanced in the main Budget. For instance, an income of £900 in 1920 was taxed at tho rate of Is Id, whereas tho proposed taxation will be equivalent to Is 6.68 d over the whole amount. " Taxation of companies will rise to a maximum of 5s 10.2 dat £8700 and over. HOW VARIOUS INCOMES ABE TOUCHED. The following table shows how the new tax on income varies, both from that proposed by Mr. Forbes earlier this session and that under the Act of 1930. Exemptions are not included in the calculation.

FAMILIES ON LOWER INCOMES. The following table indicates the tax payable on selected incomes, subject to exemptions according to the number of children: Income. No Ono ' Two Threo children. child. children, children. £ £ s. ■ <J. £ s. d. £ s. d. £ s. d. 260 Nil . Nil Nil Nil 300 2 0 2 Nil Nil Nil 350 411 0 213 1 .0 15 2 Nil 400 T 1 0 r, 310 . 3 511 1 S 1 450 911 10 718 11 516 0.3 IS 1 500 12 9 6 10 4 9. S, 610 6 811 . The same incomes were liable to taxation last year as follows: — ' Income. No One , Two, Tlirco children.: child. ■ children, children. £ € s cl. £ s. ri. £ s. d. £, s. d. 30n Nil ~ Nil Nil Nil IliO I • 8 H Nil Nil Nil •100 2 17 9 1 8 11 Nil Nil 430 -I 6" S" "2 17 fl ■■■!■■ S Jl Nil 300 t. tXI "ill 3 U > 2 j 4 EARNED AND UNEARNED. The amounts of taxation foi whuh earned and unearned income from £1500 to £10,000 will be liable aie as follows- — EAKNED No ~.■■.'■ Two Income, children. . children. £ £ s d £, s d 1,100 171 010 133 5 4 2,000 . .271 .9 2 .241 8 4 5,000 ■ 1220" 0 10 1189 15 0 ,10,000 3083 6 8 3054- IS UNEABNED No Two Income, children. children. ££6d £ 9 d 1,500 222 10 0 198 13 4 2,000 356 18 10 320 4 S siooo 1609 14 G 1561 6 8 • 10.000 4058 6 8 4019 6 8

Income. £ 265 ,290 320 350' 380 410 ■140 470 500 530 560 590 620 650 C80 710 ■ 740 800 000 1000 1200 1500 2000 3000 4000 5000. B000 7000 8000 8700 ■ Act.' £ s. d. 0 11 7 1 8 10 ii 3 6 4 0 10 5 S 11 6 9 11 7 16 8 ■ 9 5 10 11 5 fl 13 9 0 15 15 7 IS 5 6 20 18 9 31 15 3 ..■48. 5 3 57 15. 0 . ■ 79 4 0 113 11. 3 187 13 9 388 4 3 (i52 12 6 935 0 0 1258 1 3 1550 10 10 1867 18 9 2103 15 0 July. October. £ s. d. £ s. d. 0 4 1 0 4 6 O 17 1 O IS 11 17 4 1 10 4 3 15 3 8 3 4 17 4 11 0 5 9 2 6 14 6 16 6 T 11 8 S 3 10 9 2 0 9 11 2 ■ 10 12 4 11 4 8 12 9 7 13 6 9 15 6 5 In 12 O 18 6 8 18 12 11 22 4 4 21 18. 9 20 7 6 25 9 5 3112 8 29 5 0 37 3 4 33 5 5 42 19 4 37.10 .8 49 O 10 46 16 O 57 0 0 57 0 » '■ 70 O 10 68 TuO 84 3, 4 03 12 0 115 13 4 138 18 9 171 0 10 221 16 3 271 9 2 ,458 15 11 533 4 7 771 17. 6 S70 16 8 1105 0 0 .1226. 0 10 1484 8 9 1627 5 10 1832 9 2 1994 13 9 2207 11 3 .2389 3 4 2486 5 0 2681 8 4