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Analysis for family of four
Example 2
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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 |
$10.000 |
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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 |
$41,600 |
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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 |
$41,600 |
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Annual household income |
$41,600 |
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Standard 1999 deduction (filing jointly) |
$ 7,200 |
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% of income spent on taxable items |
25% |
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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 |
$23,400 |
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Income used for taxable purchases |
$10,400 |
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Approximate tax due |
$3,510.00 |
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Sales tax paid on taxable purchases |
$1,456.00 |
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Child care credit |
$960.00 |
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Child care credit |
N/A |
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Approximate tax due |
$2,550.00 |
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Approximate tax due |
N/A
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Effective tax rate |
6.13% |
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Effective tax rate |
3.50% |
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Net annual effect of hidden embedded costs |
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Tax paid by current income tax |
$2,550.00 |
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Tax paid with 14% NRST |
$1456.00 |
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Net effect |
$1,094.00 |
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Improved efficiency with new tax system |
2.50% |
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Annual savings due to improved efficiency |
$1,040.00 |
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Overall annual savings under NESARA |
$2,134.00 |
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