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HOW TAX CUTS OPERATE

LONDON, April 19. The "typical” British family, comprising a married couple and two children, earning £7OO a year, will pay £l7 income tax in the coming year instead of £2B, under the Budget proposals. Assuming that all their income is earned (that is, not gained by rent, interest or dividends), such a family earning £IOOO will pay £BS in tax, compared with £lOl in the current year. If their income is £SOO, they will be tax-free instead of paying 225. Other examples of the tax cuts are:

A married couple with three children will in future pay no tax unless their income exceeds £6OO a year.

Old New tax. tax. Unmarried persons— £ £ £300 income .. ..15 14 £500 .. 56 55 £700 ..113 111 £1000 ..218 211 Married couples with no dependents— £300 2 nil £500 ..32 27 £700 .. .. .. 79 74 £1000 ..178 168 Married couples with one child— £400 2 nil £500 .. .. ..32 5 £700 49 41 £1000 ..139 126

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https://paperspast.natlib.govt.nz/newspapers/CHP19550421.2.131

Bibliographic details

Press, Volume XCI, Issue 27639, 21 April 1955, Page 13

Word Count
163

HOW TAX CUTS OPERATE Press, Volume XCI, Issue 27639, 21 April 1955, Page 13

HOW TAX CUTS OPERATE Press, Volume XCI, Issue 27639, 21 April 1955, Page 13