INCOME TAX

Wanganui Chronicle, Volume 79, Issue 185, 6 August 1936, Page 11

INCOME TAX

HEAVILY INCREASED RATES. STUDY IN COMPARISONS. i With the Budget on the point of be;ing introduced to the House of ReI presentatives, it is an appropriate time to review the position of t’ne payer of income tax, the burden he has to bear, and the increased rates (which have been applied to his income since 1930 (says a statement by the Associated Chambers of Commerce of New Zealand). A comparative table of tax on incomes of different amounts must be on basis rates to be readily intelligible and comparable, and the table below sets out the basic rates ('basis’’ and “additional” rates) applying to the net income of an individual, wholly earned, and then wholly ’’unearned"— to use the term oflicialy applied to income derived from other than personal exertion. In each case, the taxpayer is treated as a man with a wife and two children, and the special exemptions applying to himself and his family are allowed where claimable. In order that the table may retain simplicity, and because individual cases vary, no allowance has been made in any case for income partly earned and partly “unearned”; for any further special exemptions, such as for a taxpayer’s widowed mother or mother-in-law; for life insurance, superannuation, etc.—except that allowance has been made in each case for unemployment tax and levy paid. Comparative Income Taxes. 1930 with 1935. Earned Income. f 1930 1935

The position revealed by the table appears to require no comment.

£ s d £ d 350 nil 5 3 400 nil 2 13 10 600 7 4 5 15 11 9 700 13 3 0 28 6 3 800 22 10 o 44 0 3 1000 43 17 6 67 12 0 1500 94 10 0 144 9 4 3500 443 6 8 625 7 3 5000 822 10 0 1129 1!) 11 10000 2182 10 0 2956 1 11 Unearned Income. £ 1930 1935 £ s d £ s d 350 nil 7 0 400 nil 3 11 9 600 8 0 5 20 4 6 700 14 12 2 36 12 9 800 25 0 0 57 0 4 1000 48 15 0 87 7 1 1500 105 0 0 187 1 4 3500 471 0 10 817 3 0 5000 857 10 0 1481 13 2 10,000 2227 10 0 3888 13 8