|
Example of 'linear' income tax with a threshold – everybody pays the same percentage (here 25 %) of the income exceeding tax-exempted amount ('threshold', here 10.000) |
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| Without threshold |
With threshold 10 000 |
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|
|
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| Income |
Tax to be paid |
% of income |
Tax to be paid |
% of income |
|
|
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| 5 000 |
1 250 |
25 |
0 |
0 |
| 10 000 |
2 500 |
25 |
0 |
0 |
| 15 000 |
3 750 |
25 |
1 250 |
8.33 |
| 20 000 |
5 000 |
25 |
2 500 |
12.50 |
| 50 000 |
12 500 |
25 |
10 000 |
20.00 |
Klonowski Nonlinear Biomedical Physics 2007 1:5 doi:10.1186/1753-4631-1-5 |
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