Thursday, 28 August 2008

Government Tax Relief "Discrimination"


-Click on the blank image for zooming-
if nothing happen then most probably your are in the mid-poor level income bracket- you have just experienced the effect of the tax break -

Government Income Tax Cut:

1-for lower income 1.4 percentage points
2-for mid-level incomes by 1.25 percentage points
3- for upper income groups by 1.0 percentage points

Let's do some abstract calculation.

1- 20.000 euro at 1.4% bring an extra 280 euro
2- 40.000 euro at 1.25% bring an extra 500 euro
3- 200.000 euro at 1% bring an extra 2.000 euro

So don't be fooled, the poor get poorer and the rich get richer.

The poor or family with children will be using that money to pay for rising day care and healthcare as well as rising food price. After all these group is the one that is allowing the service economy to function.

The rich will use that money , well... they won't use it. That why they are rich, they are greedy they want more money from money so they will park it somewhere with high dividend.

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