4 ms·
Ah gotcha. I included NI but not the other two. Based on the tax I'm paying currently your figures do seem about right. EDIT: actually your income tax figure
by ErrantX 17y ago
Ah gotcha. I included NI but not the other two.
Based on the tax I'm paying currently your figures do seem about right.
EDIT: actually your income tax figure might be a bit high. I'd say it's about 4.5-5K
- gjm11 17y agoPersonal allowance is ~£6.5k, leaving £23.5k. Then basic rate is 20% of that which is, er, £4.7k. I have absolutely no idea where I got £7k from. Sorry about that. So yes, my numbers are too high by ~£2k. So presumably it matters that I didn't include some other more obscure taxes -- inheritance tax, stamp duty, import duties, etc. Key point: there are lots and lots of taxes, and what Mankiw is looking at is the ratio of total tax revenue to GDP, or population, or whatever.
- ErrantX 17y agoOh yes, sorry, I wasn't querying the total :) just thinking out loud as it were. (thinking tangentially are we including employers contribution to NI as individuals tax? because that could account for any defecit)
- gjm11 17y agoI was deliberately not including it, because I was thinking the employer's contribution is quite a bit smaller than the employee's. But I was wrong; they're about the same size.
- ErrantX 17y agoYeh that surprised me too. I found a nifty tool to help work it all out actually: http://listentotaxman.com/ http://listentotaxman.com/