gaonrat
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« Reply #71 on: November 20, 2006, 10:24:54 PM » |
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Got this from one of the forum...anyone from accountancy may verify..
Example 1
In 2006, if after rebates etc and your net taxable income is $60,000, the income tax you need to pay is $2,700 (8.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480 Total=$3,180 in Tax paid.
In 2007, if after rebates etc and your net taxable income is $60,000, the income tax you need to pay is $2,600 (8.50%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672 Total=$3,272 in Tax paid.
From $3,180 to $3,272, the effective increase is 2.89%.
Example 2
In 2006, if after rebates etc and your net taxable income is $400,000, the income tax you need to pay is $61,650 (21%). If you spend $4,000 a month on needed goods and services, the GST paid for 5% will be $2,400 Total=$64,050 in Tax paid.
In 2007, if after rebates etc and your net taxable income is $400,000, the income tax you need to pay is $58,700 (20%). If you spend $4,000 a month on needed goods and services, the GST paid for 7% will be $3,360 Total=$62,060 in Tax paid.
From $64,050 to $62,060, the effective decrease is -3.11%.
Example 3
In 2006, if after rebates etc and your net taxable income is $25,000, the income tax you need to pay is $187.50 (3.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480 Total=$667.50 in Tax paid.
In 2007, if after rebates etc and your net taxable income is $25,000, the income tax you need to pay is $175 (3.5%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672 Total=$847 in Tax paid.
From $667.50 to $847, the effective increase is 26.89%.
The fact is: The poorer you are the more the GST is going to make you poorer. Wonder how the garment does their maths.... and they are supposed to be scholars...
Morale of the story: Aim for a $400,000 a year income
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