Here’s some rare good news: The average household will save $30 per week starting Wednesday, thanks to the first income tax cut in almost 14 years. The change to brackets will reduce the tax bill by 1.5% for minimum wage earners, 6.9% for median wage earners, 5.3% for average wage earners, and 4.4% for high wage earners. A worker earning $70,000 in 2010, when tax brackets were last changed, paid an effective tax rate of 20%. Willis has legislated an 11.5% increase in the brackets, reducing our hypothetical worker’s effective tax rate to 22.5%, the rate they paid at the start of 2022. The question for the Coalition is whether the tax cuts feel worth it?

Source: Stuff July 29, 2024 00:07 UTC