Tax brackets hit middle income earners

Those on the minimum wage now pay the 17.5% tax rate on two-thirds of their income, compared to about half of it in 2010. (Image: Getty)

Andy Fyers

Fri, 18 Mar 2022

Income tax brackets have not been adjusted for more than a decade.Since then, wages and prices have increased significantly. The upshot is that – without any adjustment to tax brackets – people at all points on the income curve are paying an increasing share of their earnings in tax.In 2010, the last time PAYE tax brackets were adjusted for wage and salary earners, the average worker (someone on the median wage/salaried income) earned $40,000 a year before tax.About one-third of that was taxed at the newly introduced bottom tax rate...

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