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Analysis for family of four
Example 1
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Father and mother work, two children |
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Poverty level: |
$16,700 |
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Minimum wage is $5.15/hour |
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Hourly wage |
$ 5.150 |
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Total amount paid for child care |
$ 5,000 |
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Workers per household |
2 |
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Hours worked per year, paid vacation |
2,080 |
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Annual household income |
$ 21,424 |
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Under current income tax |
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Under a 14% NRST |
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Exemptions |
4 |
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Exemptions |
N/A |
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Annual household income |
$ 21,424 |
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Annual household income |
$ 21,424 |
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Standard 1999 deduction (filing jointly) |
$ 7,200 |
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% of income spent on taxable items |
10% |
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Exemption deductions ($2,750/person) |
$ 11,000 |
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Sales tax rate |
14% |
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Total deductions |
$ 18,200 |
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Total deductions
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N/A |
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Taxable income |
$ 3,224 |
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Income used for taxable purchases |
$ 2,142 |
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Approximate tax due |
$ 483.60 |
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Sales tax paid on taxable purchases |
$ 299.94 |
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Child care credit |
$ 1,152.00 |
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Child care credit |
N/A |
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Approximate tax due |
$ 0 |
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Approximate tax due |
N/A
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Effective tax rate |
0.00% |
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Effective tax rate |
1.40% |
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Net annual effect of hidden embedded costs |
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Tax paid by current income tax |
$ 0 |
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Tax paid with 14% NRST |
$ 299.94 |
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Net effect |
$ (299.94) |
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Improved efficiency with new tax system |
2.50% |
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Annual savings due to improved efficiency |
$ 535.60 |
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Overall annual savings under NESARA |
$ 235.66 |
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