A month ago, I have just completed my tax submission. There is something not right about our tax system. It seems that it is not working for lower income group and it doesn’t benefit them. Why do I say that?
Take for example: We get books rebates up to 1000.
If you are earning 2500 a year, basically the rebates don’t apply to you because you are not subjected to tax. You get no benefit from the book rebates.
If you are earning higher and after all the deduction, the taxable income is 10K. You are entitled to a 3% discount or rebate on books up to 1000 you spend.
If you are earning higher and after all the deduction, the taxable income is 70K. You are entitled to 24% discount or rebate on books up to 1000 you spend.
More than 250K, you get a 28% discount.
If you see the trend above, it means the more you earn, the more discount you get. Therefore the richer you are, the more money you save.
You then argue, hey I pay more % tax if I earn more. Regardless of the book rebates, you still pay the same %. You cannot say because I pay more tax, I should have more discount with books. Not right at all. My point is that the book rebates is not equal for every body.
It should be made that lower income earners should benefit more from it versus higher income earners. This is not the case. Someone ought to rethink of a better method. Don’t you think so?
totally agreed with u! that’s why i claim under hub’s acct.