THE NEW INCOME TAX.

Manawatu Herald, Volume XXXIX, Issue 1745, 7 August 1917, Page 3

THE NEW INCOME TAX.

A READY RECKONER. Some people arc rather confused as to how to compute the new income tax, as applied to given incomes, says “Alereutio” in the Auckland Herald. Hera is a ready reckoner, which may help. The tax is Is 3d per £ on the first £4OO. Then add at tlie rale of l]d for each £IOO, and at the rate of -one-eight-ieth of a penny for every odd£. Take as an example an income of £SBO. The tax in this case is Is 3d (£400), plus Ifd (£100), plus Id (£80), a total tax of Is 5.(d. Deduct the exemption of £3OO from the income, and the taxpayers bill is Is 51d on £2BO, viz., £2O 2s 6d. The tax on any income may be computed in tins fashion. Take the fortunate man with, say, £2,840. His sum is Is 3d (£400), 2s 6d (£2,400), and Id (£4O), a total of 3s Old, and as he is not allowed the exemption his tax bill is £538 8s 4d, A man with an income a little over £4,100 has to give a tenth to the State, with £2,400 he gives a sixth, with £4,000 a fourth, and with £5,600 a third. It is a pretty heavy tax, but war is a costly business.