User:Miles w/ubi 2020
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This policy is ready to be presented to the membership for discussion and adoption.
This policy proposal is now in its final form and will be presented at the next policy meeting or Congress.
Please note that this proposal is the final form that will be presented for discussion, but is still not endorsed by the party.
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National Congress 2020
Basic income through reverse taxation: PM-5 (option 1)
This section would be modified to set the threshold at $50,000 so with the rate remaining at 37.5% all other figures in this section would need to be updated accordingly. The table below provides the new figures.
| Income before tax | Tax threshold | Gap between income & threshold | Tax rate | Change in income | Income after tax | Effective tax rate |
|---|---|---|---|---|---|---|
| $0 | $50,000 | -$50,000 | 37.5% | +$18,750 | $18,750 | 0% |
| $40,000 | $50,000 | $-10,000 | 37.5% | +$3,750 | $43,750 | 0% |
| $50,000 | $50,000 | $0 | 37.5% | nil | $50,000 | 0% |
| $60,000 | $50,000 | $10,000 | 37.5% | -$3,750 | $56,250 | 6.25% |
| $100,000 | $50,000 | $50,000 | 37.5% | -$18,750 | $81,250 | 18.75% |
Basic income through reverse taxation: PM-5 (option 2) MILES MOVING THIS ONE
This section would be modified to set the threshold at $64,000 so with the rate remaining at 37.5% all other figures in this section would need to be updated accordingly. The table below provides the new figures.
| Income before tax | Tax threshold | Gap between income & threshold | Tax rate | Change in income | Income after tax | Effective tax rate |
|---|---|---|---|---|---|---|
| $0 | $64,000 | -$64,000 | 37.5% | +$24,000 | $24,000 | 0% |
| $30,000 | $64,000 | -$34,000 | 37.5% | +$12,750 | $42,750 | 0% |
| $64,000 | $64,000 | $0 | 37.5% | nil | $64,000 | 0% |
| $84,000 | $64,000 | $20,000 | 37.5% | -$7,500 | $76,500 | 8.83% |
| $128,000 | $64,000 | $64,000 | 37.5% | -$24,000 | $104,000 | 18.75% |
Basic income through reverse taxation: PM-5 (option 3)
This section would be modified to set the threshold at $75,000 so with the rate remaining at 37.5% all other figures in this section would need to be updated accordingly. The table below provides the new figures.
| Income before tax | Tax threshold | Gap between income & threshold | Tax rate | Change in income | Income after tax | Effective tax rate |
|---|---|---|---|---|---|---|
| $0 | $75,000 | -$75,000 | 37.5% | +$28,125 | $28,125 | 0% |
| $30,000 | $75,000 | -$45,000 | 37.5% | +$16,875 | $46,875 | 0% |
| $75,000 | $75,000 | $0 | 37.5% | nil | $75,000 | 0% |
| $105,000 | $75,000 | $30,000 | 37.5% | -$16,875 | $88,125 | 16.00% |
| $150,000 | $75,000 | $75,000 | 37.5% | -$28,125 | $121,875 | 18.75% |