Welcome to the real world

Read this somewhere.

QUOTE
Example 1
In 2006, if after rebates etc, your net taxable income is $60,000, the income tax you need to pay is $2,700 ( 8.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480. Total=$3,180 in Tax paid.

In 2007, if after rebates etc, your net taxable income is $60,000, the income tax you need to pay is $2,600 ( 8.50%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672 Total=$3,272 in Tax paid.

From $3,180 to $3,272, the effective increase is 2.89%.


Example 2
In 2006, if after rebates etc, your net taxable income is $400,000, the income tax you need to pay is $61,650 (21%). If you spend $4,000 a month on needed goods and services, the GST paid for 5% will be $2,400 Total=$64,050 in Tax paid.

In 2007, if after rebates etc, your net taxable income is $400,000, the income tax you need to pay is $58,700 (20%). If you spend $4,000 a month on needed goods and services, the GST paid for 7% will be $3,360 Total=$62,060 in Tax paid.

From $64,050 to $62,060, the effective decrease is -3.11%.


Example 3
In 2006, if after rebates etc, your net taxable income is $25,000, the income tax you need to pay is $187.50 ( 3.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480 Total=$667.50 in Tax paid.

In 2007, if after rebates etc, your net taxable income is $25,000, the income tax you need to pay is $175 ( 3.5%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672. Total=$847 in Tax paid.

From $667.50 to $847, the effective increase is 26.89%.

The fact is: The poorer you are, the more GST is going to make you poorer
UNQUOTE

Any expert on tax rates out there, who can comment on the accuracy of the above computation? This poor Human Battery belongs to the "example 3" category :(

Morpheus: Welcome to the real world.