Thursday, July 15, 2004

Are you paying too much.

As you may have already gathered I'm interested in the issues of income tax versus benefits. The new link to the right points to a calculator which combines information on an individual family's tax liabilities and entitlements to various benefits. The output displays income tax liability, "main benefit" (DPB, Unemployment, etc), and family assistance entitlements for the current year and for the next three years according to the latest budget. These figures are then compared with what they would be if you had no earnings to calulate the net value (to you) of your earnings and your "effective tax rate".
Feedback welcomed.

2 Comments:

Blogger Uroskin said...

41% effective tax rate in my case. But does it take into account differing tax rates for people living together before and after the Civil Union Bill? partners may not qualify any longer for benefits when that change.

17 July 2004 at 1:41 PM  
Blogger Greyshade said...

No the cases considered are single people or "couples". Under CUB I would expect same-sex couples to be treated as "married couples" - whether for beneficiaries or not (just set the "status" to married couple). If the law stays as it is I believe the partners in a same sex relationship need to be entered as separate individuals (process each partner separately and set the appropriate "single" status for age and circumstances). BTW 41% is a low effective maginal rate (middle-income families can pay much higher rates) but it still amkes a mockery of the 39% "maximum" tax rate.

19 July 2004 at 6:24 PM  

Post a Comment

<< Home