WAR TAXES

Wairarapa Times-Age, 29 June 1940, Page 7

WAR TAXES

EFFECT OF NEW RATES GRADUATION IN STEPS. EXAMPLES OF PAYMENTS DEMANDED. AUCKLAND. June 28. The proposals for new direct taxation contained in the Financial Statement make a very substantial increase in the levy on all incomes. The method of assessing income tax is graduated by what the Minister of Finance. Mr Nash, described as a series of steps, starting with 2s 6d in the pound for the first £lOO and increasing by threepence for each succeeding £lOO. Thus a taxable income of £lOO will be charged 100 times 2s 6d. of £l2 10s. this amount being increased by 15 per cent as a special war tax, making the total payable £l4 7s 6d. If the taxable income is £2OO. the second £lOO will be levied at the rate of 2s 9d. the £l3 15s so yielded being added to the £l2 10s produced by the first £lOO making £26 5s for the £2OO. raised to £3O 3s 9d by the additional 15 per cent. The two security taxes, Is in the pound for social security and a similar sum as the new national security tax will be payable on wages, salaries and other income without any exemptions just as the social security tax has been hitherto. The exemptions allowed under the present law will continue to apply in assessing income tax. There will be the personal exemption of £2OO on all incomes of individuals, and the existing deductions in respect of dependants. Thus the exemption for a childless taxpayer, with a wife wholly dependent, will be £250, leaving out of account possible insurance premiums’ or other allowances. The following tables show the combined weight of income tax and the two security taxes on individuals. Only allowances for dependants have been made without regal’d to insurances, superannuation or other deductible payments. The calculations are for income wholly earned by the taxpayer. Unearned or investment income is subject to a further increase of 33 1/3 pet cent.

Sir gle Ma n, No Dependants. Gross Income £ Income Tax £ s d Security Taxes £ s d Total £ s d 300 14 7 6 30 0 0 44 7 6 400 30 3 9 40 0 0 70 3 c. 500 47 8 9 50 0 0 97 8 c 600 66 2 6 60 0 0 126 2 6 700 86 5 0 70 0 0 156 5 0 800 107 16 3 80 0 0 187 16 V 900 130 16 3 90 0 0 220 16 *? 1000 155 5 0 100 0 0 255 D 0 1500 299 0 ,0 150 0 0 449 0 0 2000 478 13 9 200 0 0 678 13 c Gross Income £ Childless Income Tax £ s d Married Man. Security Taxes Total £ s d £ s d 300 7 3 9 30 0 0 37 3 9 400 22 5 8 40 0 0 62 5 8 500 38 16 3 50 0 0 88 16 3 600 56 15 8 60 0 0 116 15 8 700 76 3 9 70 0 0 146 3 9 800 97 0 8 80 0 0 177 0 8 900 119 6 3 90 0 0 209 6 3 1000 143 0 8 100 0 0 243 0 8 1500 283 3 9 150 0 0 433 3 9 2000 459 5 8 200 0 0 659 5 S Gross Income £ Married Income Tax £ s d One Child. Security Taxes £ s d Total £ s d 300 Nil 30 0 0 30 0 0 400 14 7 6 40 0 0 54 7 6 500 30 3 9 50 0 0 80 3 g 600 47 8 9 60 0 0 107 8 9 700 66 2 6 70 0 0 136 2 6 800 86 5 0 80 0 0 166 5 0 900 107 16 3 90 0 0 197 16 p 1000 130 16 3 100 0 0 230 16 3 1500 267 7 6 150 0 0 417 7 C 2000 439 17 6 200 0 0 639 17 6 Gross Income £ Married, Two Childre Income Security Tax Taxes £ s d £ s d n. Total £ s d 300 Nil 30 0 0 30 0 (' 400 7 3 9 40 0 0 47 3 500 22 5 8 50 0 0 72 5 8 600 38 16 3 60 0 0 98 16 700 56 15 8 70 0 0 126 15 800 76 3 9 80 0 0 156 3 900 97 0 8 90 0 0 187 0 8 1000 119 6 3 100 0 0 219 6 3 1500 252 5 8 150 0 0 402 □ 8 2000 421 3 9 200 0 0 621 3 9