Workers' Income Tax
It is not surprising that there should have been a good deal of misunderstanding about the operations of income-tax among the wage-earners who have only recently become liable to it Even hardened salary-earners who have been filling up forms for years find its complications baffling enough, and it is all the more likely to cause doubts in the minds of wage-earners, now for the first time liable, whose tax is deducted by their employers, some- times in amounts that appear to vary capriciously. Such persons (and perhaps others) would do well to study the booklet issued by the Ministry of Information, " Income Tax Quiz for Wage Earners," from which they may learn in simple language all about earned income, personal, children's and expenses allowances ; and also the system under which tax is deducted from wages. The questions and answers given at the end of the pamphlet should serve to clear up many misunderstandings. There are some workers who really believe that they lose money by working overtime. That fallacy is dispelled. Others fear that if they have been working on short time one week the tax may take away all their wages the next week. That, in fact, is impossible Then again, the operation of the system by which extra tax due and the reductions of allowances is put to a post-war credit is fruitful source of misunderstanding. The tax-payer is told hero that in due course he will be informed of the amount put to his credit, though he may have to be patient in waiting for this information. It would be well if employers themselves well careful to master the facts and be prepared to explain them to their workers. One thing that every employee should fully appreciate is that the extra tax will never be equal, or anythul lake equal, to the extra money he earns.
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