Tax Rates Reflect Lifestyle
Through the proposed DTC / GST legislations, the government has acknowledged the necessity of new revenue system nevertheless the proposed new laws apparently appear being even more complicated then nowadays one.
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Contributing an insurance deductible $1,000 will lower the taxable income with the $30,000 yearly person from $20,650 to $19,650 and save taxes of $150 (=15% of $1000). For that $100,000 yr person, his taxable income decreases from $90,650 to $89,650 and saves him $280 (=28% of $1000) - almost double the amount!
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