Winners and loses from TOP’s tax plan

I’ve calculated how better or worse off people might be under TOP’s innovative tax policy.

If you do not own a house (skipping over indirect effects such as rents for now), then you save money at every income level.

Those on $80,000 would save the most with a $4,320 reduction in their tax bill. The lowest income earners would benefit the most in percentage terms with someone on $40,000 having their tax bill drop 25%.

If you own a house it looks different. I’ve assumed the median land value is $500,000. Sometimes you may own with a partner so your share would be half. Broadly if you live on a median value section, then you will pay more in tax at almost every income level except $80,000 to $100,000.

If you own multiple sections, your tax bill would significantly increase (which is an intended consequence).