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Analysis for single parent
Example 3
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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 |
$20.000 |
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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 |
$41,600 |
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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 |
$41,600 |
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Annual household income |
$41,600 |
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Standard 1999 deduction |
$6,350 |
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% of income spent on taxable items |
30% |
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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 |
$27,000 |
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Income used for taxable purchases |
$12,480 |
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Approximate tax due |
$4,050.00 |
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Sales tax paid on taxable purchases |
$1,747.20 |
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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 |
$3,090.00 |
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Approximate tax due |
N/A
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Effective tax rate |
7.43% |
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Effective tax rate |
4.20% |
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Net annual effect of hidden embedded costs |
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Tax paid by current income tax |
$3,090.00 |
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Tax paid with 14% NRST |
$1,747.20 |
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Net effect |
$1,342.80 |
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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 |
$2,382.80 |
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