lATURDA

THE 1942 BUDGET

HOW TO CALCULATE THE TAX ON YOUR 1942 INCOME

A. YOUR INCOME $_____ LES: -

§3l$"‘..‘.'.‘.il2.”r't.'.§2 .____.~

Charitable Donationa.

Medical and Like Ex- neee over 0% d

our Income tongs-re:

Limited Contributions l” F'°5W°li"9—-— i Elk

YOUR TAXABLE INCOME ._.$

GRADUATED TAX

NORMAL TAX

I. YOUR GROSS NORMAL TAX

lF YOU ARE SINGLE- With income between 00$ and |$i,800- 7% of Your Taxable , n n. (ﬁcglrnodbinyﬂill‘g es

With Income brween $1,000 and

83000-07, of Your Taxable l, Emm l__...__. l

en ' With! 0 $3, d YournToarsablevlerleomooo-mmi. $______.._ es

D. YOUR GROSS GRADUATED TAX

IF Y‘OU ARE MARRIED On First S 660 0t Taxable Income Ne Tu n l net-nun wlilli-"fimfflfwtkdtzftt 0 1 5 ___. income o 37% 00 " 1.000 ' " " ._-_.... m: r- a breknhu anus ul- rws gm: For Additional Rates-See Table below. i

execs...-

Your Orolle Nonnal Tani-i 8

Your Gross Graduated Tsx_t__...... $_..___.__ this one n11 llsrmlraa ruémﬂu-tnulev-ovlranlonllaa

ﬂﬁlsﬂlﬂﬂllvlﬂeiTlﬁllilibililil

4 ' I- YOUR NET GRADUATED TAX Your Gross Graduated Tax.._._....... $.._..__..._ LESS-

C- YOUR NET NORMAL TAX

Your Oroee Normal T iii Mlllﬁdglgéﬁﬂitlvﬂf"; 15g m- (3.; None) L535‘ “ o r E n o . $28 for Each Depend- "Oﬂloéhllgctundarlelpyfsldet ent Child ______- lnupsrlinledoislledslltvndl?!

20% ol Outlay, up to - $80, ior Each Depend- ant Relative runlm b those ael out lnihn Aeil

Your Net Graduated Tax

(Under i! yell! or mrrosntlltdi ‘ lludeni under 2» years-l $28 tor Each Depend-

cnt Relative {Lllvlliedll ihnxeseloui nths Acil

Your Not Normal Tax

ti.

IF- vooa TOTAL TAX

Your Net Normal Tan... $,-...._.._ Your Net Graduated Tax.

Your Total Tax $:____.. 9- YOUR TOTAL TAX PAYABLE "- YOUR POST-WAR REFUND Your Total Tax Si? The 16"” M- LESS, (1 ) One-halt Y)" Total Tax__.. OR T“ m5” M“ _ (2) ll Single-—B% oi Your income a (i) sllplﬂlhiiﬂttlllallﬁﬂ (MZXHTSIFH $300: plug 1% for aymcn S ......___ CﬂC ODOR 9T1 lXlml-lm Life insurance Pre- $100 {or Each) """"""""" """‘"' "”‘""""""" rniums Paid _._. ._._.._._ if Marriod-IOEZ, oi Your income gs Mortgage Principal (Mixigum 2'0?” Plug?" a" ______. =__;__.- all. nrtslrl..- < , ___ . LESS: Portion Claimed as Deduction d .. m KZEIllIVl-lfplljesrvllwjllrfﬁlatgilgcq u) E _ (frgmnyouyr(xc_liailnl'gii.agw..a You PAY (loss deductions at the source) $____ You GET BACK (plus 2% Interest)... 8..."...

mole-A husbend and vrlls are seen laueler Kennel 1a- purpdrsos A111 n: income w myaml have llolllll lnmenss exreedins We, m: milur may claim ule Muriel Person's Otdllsilon o1 [1517 It! Olldulhd Tll P0190"!-

GRADUATED RATES OF TAX

CALCULATED ON TAXABLE INCOME OVER $5M Between $1 and 8 .500 Rate oi Tax is 30%

" 3 500 “ Q 1,000 Tibia S I50 + 33% on excess ever} 5G) ' 8 1,000 " 8 2,000 Tax la S 315 + 37% on excess over 8 1,000 ' C ZGX) " Q 3,500 Tix il 3 685 + 41'], on excel! over Q 2,!!!) " $ 3,500 " S 5.000 Til il $1,311) + 45% on excess 0V0! C (L5G) ' Q 51X!) " S H.000 Tix is ¥ L975 + 50% on excess over S 5,11!) T S B,UX) “ l l3,(X)0 Tax l: i 3,475 + 55% on excess aver S L”) " S LLOM " 8 20,000 Tzlx la S 6,225 + 60% on excess ovsr I 13,51) " 8 20,000 " 8 30,000 Tax is $0,425 + 6571,, on excess over 8 mono " S 3011!) " Q 5011K) Tax il $6,925 + 70% 0n 016051 0V0! O JLGD T 5 50,000 " $_ 70,000 Tax is {£7,925 + 75% on excess 0V0! C 501x13 " S 70,000 " $100,000 Tax ls $45,925 + 80% on excess over S WLWI)

On $l00,w0 Tax i1 59,925 + 06% on excess over sloopoo

(Surtax oi 4% also aooiise on investment lnoerrle In excess of $1,500)

fir, ,3 50,115,, m, for doclﬁg, too, es these pictures from the lIbynn-Egrypﬂln battle reveal.

m. l “Med mm“, ambulance dflvgf l; led from his burning vehicle to another lied Cross eer ‘y Two c:,',',’,,_._d,,,_ The m, "m, m, ambuhnu, “m plainly marked dillnt keep Ilhp Axle from attacking this Royal Army Medical Corps wnvoy.

BRINGING UP carnal:

THE _ Cl-IARLOTTETOWN GUARDIAN

LET'S NOT WORRY OVER INCOME TAX

JUST

STUDY THIS

_ Might as Well Get Down to Figures When We Have Time, and Here's Some Guidance on How to Do It

‘(By roam navrnmm (Canadian Press Staff ‘Wrltcll

OITAWA. Jul ll (OP) —'.l'!i0 new income taxa ion seems pretty involved when you read Finance Minister Ilsloyks bu t speech but the average Cane an shouldn't

have too much trouble finding out’

accurately how much he owes the government. a

La t the national efenoe u; Emluéredusted income tea were collected separately. This year-in effect- the two are mull- ed together for purposes of s li- fled collection at the source ut

nerally the method of calculatlnif as amount of tax payable is little h

e angled.

Today the Department o! Nation- al Revenues Income Tax Division provided the Canadian Press with the accompanying chart showin! Just how the figuring should be

done.

So with the chart as e. guide, let's do the calculating for s. married man with one child, paying $150 e year into his company's superan- nuation fund, paying life insur- ance premiums of $250 a year, and making charitable donations of $50. And you can fill the blank spaces 1n the table with figures bailed Oli your own income and expenditure! as we 2° ﬂims-

Dednction Provisions

First: the amount of earnings which are taxable. That's the section marked "A" in the chﬂrl- Our sample taxpayer puts $3,000 in the first line, writes $150 after the entry "Payments to approved superannuatoin funds," and $50 cf- ter the entry for “Charitable Dona- tions." The new budget makes pro- vision for deduction from the tax- able income of payments to doctors, dentist and nurses to the extent that they exceed five per cent of the taxpayerss lncome- but that is considered unusual and we have assumed our "sample" doesn't run into that situation.

There is provision, too, for deduc- tion b-y members of mining syndicates of limited sums of money spent to finance prospecting for base metals and strategic min- erals, but the averaging Canadian isn't interested in that.

so with deductions of $150 and $50 from the total income, of $3,- 000. the Taxable Income is $2,800. That ls the basic figure for the rest: of the calculating and is to be used under both Normal Tax and the Graduated Tex.

Now let's take the “normal tax" -equivaleut to last years National Defence Tax and calculated on the basis of taxable income if it ex- ceeds $660 in the case of single per- sons or $1.200 for married persons.

To get his gross normal tax our married sample puts down seven per cent of his $2,800 taxable in- come—$196. The rate applies to all maried men unless their wives earn more the $660 l1 year when each has to pay this tax.

A single man pays seven per cent of his taxable income if his total income is between $660 and $1,800: eight per cent with total income between $1,800 and $3,000; and nine pel- cent, if his income is Over $3,- 000. The normal tax in no case is allowed t0 reduce the taxpayer's in- come below the $660 or $1,200 levels.

Dependent Children

From the gross normal tax, a $28 deduction is allowed for each de- pendent child (up to 1B years in most cases but up to 2i on proof the child is still a. student) and $28 for each dependent relative as pro- vlded in the income war Tax Act Our sample deducting for one child reduces his net normal tax of $196. by $28, making it $168.

Now go to section "D" to calcu- late the gross graduated tax, The first $660 of income is not subject to tax. Above that the tax rate starts at 30 per cent and mounts rapidly. Our sample taxpayer has to pay graduated tax on taxable in- come of $2,800 less the 660 deduc- tion, or $2,140. The rst $500 is taxed at 30 per cent, or $150; the next $500 at 33 per cent, or $165; the next $1.000 at 37 per cent or $370; and the last $140 at 4i per cent or $57.40 -a gross total of $742.40, before deductions.

But for his wife a married tax- payer can deduct $150 and for each child $80. Our sample, wilth one child, deciucts $230 from the gross total 0f $742.40, leaving $512.40. I! s. taxpayer ls supporting other de- pendent relatives, as outlined the Income War Tax Act -includ- ing grandchildren, brothers, sisters,

arent, grandparent, 0r child Erouglht to Canada from Britain under a government -sponsored scheme, providing they are wholly depends it -he may deduct up to one fifth of his actual expenditures on such dependents, up to a tote‘. oi $80 each.

Once the net graduated tax is calculated, the next step (Section "F") is to odd it to the net normal tax figured previously. Our sample, with net normal tax of $108 and e net Braduated tax of $512.40 has a total tax before further allowable deductions amounting t0 $680.40.

Sections “G" and “l-i" of the chart outline the tricky part of the calculating job. The figures in the two eeotioxls are tied together, end

m Mary Boyian; Grade

the inbotlaseetinsshll tobe neonoe.

figures 10 per cent of his texsble income up to a maximum 01.000 and adds one per cent for etch de- pendent up to s maximum of 0100 each. For our sample taxpayer with one dependent child that amounts

to . The regulations provide that the maximum poet-WU‘ refund is the

the figures reached by the more involved percentage syment. The comparative figures or the sample liwlllyer are $34020 and $308 -end he Uses the $306.

Now across to section "O" on the

chart. m“‘°=l§’“"l§°‘ ' bis dawn”. m e x psya cover

lnenta into su rennustion fault and on life urance premiums and payments on mortg prin- cipal, pmviding the ins cc J»- licies were in effect on budget, s , June 23.

“We say to a taxpsyer," said one official, "that. our aim is to remove money from his pockets which he might otherwise spend on non- essentials. But we don't care whe- ther he saves through the com- pulsory savlngs portion of the in- come tax or inedpendently , . . . lust as ions as he saves."

In section "G" the deduction ll- lowable from the gmss total tax is the amount of the poet-war refund or the payments made for other forms of saving -whichever is less. But in no case may the deductions for superannuation fund, life in- surance or mortgage principal pey- mente exceed the maximum amounl of income tax which the govern- ment is going to repay after the

war, Toteiling Up

For section "G" our sample tex- peyer totals u? his available deduc- tions —$250 ife insurance premi- ums and $150 for eu rannuetion fund payments, atot of 8400.121“ figure exceeds his maximum post» war refund of $308 so he can not claim the full $400. instead he de- ducts from his total tax of $680.40 the maximum refund of $308 - leavlng a net tax gayeble to the government of $372. -and that is the amount the government will collect.

Now back to section "H" for just a minute to find out how much you get back after the war. Our sample taxpayer ts nothing, since he has already t n credit forthe full e- mount of his compulsory so. s. In moat cases the deductions or life insurance, superannuation pay- ments end payments on mortgage principal will be less than the post- war refund. To find out how much comes back-disregarding the two- per-cent interest -subtrect the e~ mount deducted from your total tax for the alternative forms of saving --and there you have it.

AUBURN SCHOOL CLOSING

Tool: place June 30 with quite I munber of parents and visitors . The pupils were examined by their teacher assisted l7! Mrs. Angus A. MacNell-l. The following gmldlirlg diplomas were awarded as follows: Grade VII-Catherine Boylan 439. Grade VIL-Louls McKenzie and Theresa Corrighan. Grade Ill-Richard MsoNeill and Elizabeth MeioClaughef, Certificates for wrting wen as

follows.

Progress: Mwoitieill, Jr., Joseph MoOaug ey, (Lara McEn- tree, Elizabeth McCaughey, Richard MacNeill, Louie A. McKenzie.

Junior: Catherine Boylen, Georgi McKenzie, Themes Corrigan, 11n- esa McBn .

Senior: Mary Boyien, Rite. Call ghnn, Frances McCa-rron, R0: MacNelll.

P;izes were awarded as follc for highest aggregetm- Grads x IX-Rol MacNelll; Grade VIII - Cstherhe Boylan; Grade VII-Therese. cor"- ghan; Grade IV-litldtsrd M’ Neill; Guide III-AXlB‘ill Mach” Jr.; Grade I Biz-Charles l‘ Oaughey; Grade I lit-Vernon l t Caughey,

Prizes for number cl srsra were swa ed to Grade U ~ Clara Mcllntce; Grade Iii-Ill:- beth McCaugtiey.

After the serving of candy h"- merks were mode to the teschc. Miss L. Whslen by Mrs. A. A. Mao-- Neill on the great plosives made by the pupils durins the previous year. who also tendered a vote of thanks to the teacher for her splendid work end untiring enera

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By deem Methane

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OLD HOME WEEK

AND . PROVINCIAL LIVE STOCK EXHIBITION CHARLOTPETOWN

UGUST 11,12, l3, 14,1942

THE "MARIHMES GREATEST HOLIDAY

. UPWARDS 0F $10,000.00 m PRIZES, PREMIUMS, PURSES and swarms

AN OUTSTANDING ENTERTAINMENT PROGRAM

9 VAUDEVILLE ACTS including z of the wollurs GREATEST THRILLERS

GRAND GALA REVUE with Beautlf

COMEDIANS andBEAUTIFUL LADY smcnn. INTERNATIONAL swan DANCING TEAM

atEVUE FEATURED WITH GORGE

scrrmcs AND MODERN LIGHTING EFFECTS

BIG UP T0 DATE MIDWAY wrr LATEST MECHANICAL RlDgsNglyMlltllNn

OVER 100 of the Beat Horses ln the Mari

4 afternoons with VAUDEVILLE ACTS interspersed

Attractive Evening Show; w REVUE with Magnificent

ith Vaudeville, SINGING Lighting, Effects, FIREWEEEEDEEAL‘

Provincial Live Stool: Exhibition Featuring PRINCE EDWARD ISLAND’S finest

HORSES

ROADSTERS CLYDESDALES PERCHERONS and DRAFT

C A TT LE- DAIRY BREEDS

AYRSHIRES HOLSTEINS GUERNSEYB JERSEYS

BEEF BREEDS

SHORTHORNS end Otiler Beef Breeds.

S W I N E YORKSHIRES

‘POULTRY

PRODUCTION CLASSES

TURKEYB GEESE.

Plan this for your Holiday Week. Write year friends. COIN‘

Provincial Exhibition Association

SHEEP

OXFORDB SI-IROPSHIRES SOUTHDOWNS HAMPSHIRE!

Charlottetown, PRINCE EDWARD ISLAND

J. W. BOULTER, Secretary‘.

ul GLAMOROUS GIRLS, suvcnvo

OUS COSTUMES, ATTRACTIVE

ACTIONS including FAIR GROUNDS

"D188 battling for hung]; 0n

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