SRC Member madman Posted November 25, 2006 SRC Member Share Posted November 25, 2006 Just received the below via email, any maths whiz know how the formulas came about? How true is it? For those residing in Singapore… 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 Quote Watch your thoughts’ they become words. Watch your words; they become actions. Watch your actions; they become habits. Watch your habits; they become character. Watch your character; it becomes your destiny. --Frank Outlaw Link to comment Share on other sites More sharing options...
jervismun Posted November 26, 2006 Share Posted November 26, 2006 I find a flaw in the above examples: Earn $2000 a month, spend $800 Earn $5000 a month, spend $800 Earn $30000 a month, spend $4000 If I earn $5000 a month... I will definitely spend more than $800 on goods and services Quote Tank 60x40x40 Optiwhite Glass Tank Sump Elos 500 w/ Tunze Overflow Protein Skimmer Skimz Kone SK1 Return Pump Hydor Seltz L30 Wavemaker Hydor K1 Illumination 150W + 2 T5 Chiller Arctica 1/5hp w/ Aquabee 1000 Water Top-up Tunze Osmolator Dosing Pumps Grotech 3-Channels Calcium Reactor Deltec PF 501 Computer Aquatronica Link to comment Share on other sites More sharing options...
SRC Member madman Posted November 26, 2006 Author SRC Member Share Posted November 26, 2006 Hmmmm, quite true. But is it true tat the poor, sorry should be not so well off, might pay more tax? Quote Watch your thoughts’ they become words. Watch your words; they become actions. Watch your actions; they become habits. Watch your habits; they become character. Watch your character; it becomes your destiny. --Frank Outlaw Link to comment Share on other sites More sharing options...
SRC Member searching4dan Posted November 27, 2006 SRC Member Share Posted November 27, 2006 lol.. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.