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Analysis for single parent
Example 2
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Single parent works, two children |
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Poverty level: |
$13,880 |
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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 |
1 |
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Hours worked per year, paid vacation |
2,080 |
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Annual household income |
$20,800 |
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Under current income tax |
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Under a 14% NRST |
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Exemptions |
3 |
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Exemptions |
N/A |
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Annual household income |
$20,800 |
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Annual household income |
$20,800 |
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Standard 1999 deduction |
$6,350 |
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% of income spent on taxable items |
15% |
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Exemption deductions ($2,750/person) |
$8,250 |
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Sales tax rate |
14% |
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Total deductions |
$ 14,600 |
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Total deductions
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N/A |
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Taxable income |
$6,200 |
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Income used for taxable purchases |
$3,120 |
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Approximate tax due |
$930.00 |
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Sales tax paid on taxable purchases |
$436.80 |
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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 |
2.10% |
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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 |
$436.80 |
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Net effect |
$ (436.80) |
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Improved efficiency with new tax system |
2.50% |
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Annual savings due to improved efficiency |
$520.00 |
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Overall annual savings under NESARA |
$83.20 |
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