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User:DoktorTom4tune

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New income and wage tax model

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I discovered by chance a new income and wage tax model.

The new thing is the calculation of the monthly income tax on salaries. I use a new base for estimation of the tax percentage. This algorithm gives the governments a control instrument to influence the economy more qualitative.

I will give you further information of the algorithm.  


The existing income tax models are a link between gross income from employment and wage rate. The following relationship shows that as a different kind of wage tax rate calculation is.


     (1)  
          


The equation (1) indicates that the income can be spent and saved. The income is calculated from the gross income and the wage tax rate.


     (2)  
          


  (2a)

          


Gross income' is a fictitious gross income. Social contributions are the sum of unemployment contribution, pension contribution and health insurance contributions.

Determining the wage tax rate of (2):


     (3)  

            

          


Using equation (3) results in a wage tax rate calculating that dependent on the 3 variables expenditures, saving and gross income'.

So we obtain a quadratic equation for x, the next equation (5).


      (5)  


With income I mean all forms of income. Just as unemployment benefits, pensions.

A tax increase or tax cut which is oriented to the consumption ratio. The expenditure for the next year are calculated on the wage tax curve.