<IS YOUR HOUSEHOLD INCOME FAIR?

Evaluating the Fairness of Household Income

Benchmark ratio for a Country's Gross Domestic Product (GDP) and Gross Domestic Tax (GDT)

CALCULATING: Tax to Income Ratio of a Country. That is GDT to GDP ratio.
Nominal GDP (or GDP at current prices) (A)

Tax Inequality book: Subsection 3-1-1

Gross Domestic Tax (GDT) (B)

Tax Inequality book: Subsection 3-1-2

(GDT is the total tax revenue of a country which is the sum of all governments tax revenues (e.g. federal, national, state, municipal, local)
GDT-to-GDP Ratio is equal to (C = B / A): NaN
GDP per capita (current prices) (D)

Tax Inequality book: Subsection 3-1-2

(GDT is the total tax revenue of a country which is the sum of all governments tax revenues (e.g. federal, national, state, municipal, local)
CALCULATING: Tax to Income Ratio of a Household.

Households' Income and Households' Total Tax Burden

Household's net income (F)

Tax Inequality book: Subsection 3-1

(Household's total net income from all of its members)
Household's tax on income (G)

(e.g. for profit income income tax social security tax (SST), health service tax (HST), and so on; for wage income both employee and employer shares of social security tax (SST), health service tax (HST), unemployment tax (UET), income tax, and so on.)
Household's income is equal to (H): 0
Household's subsidy incomes from governments and nonprofit entities (J)

Tax Inequality book: Subsections 2-1-2 and 2-1-3

(Household members receive subsidy income from governments in the form of direct financial assistance (cash) or as food stamps, housing allowances, rental assistance payments, educational aids, clothing, child bonuses, childcare benefits, home childcare allowances, eldercare allowances, and so on. Nonprofit entities (foundations, charities, and voluntary associations) provide public benefits in terms of in-kind aids, different types of assistance payments, allowances, and supplementary benefits to households in need. The monetary equivalent of these in-kind aids, and any direct payments should be added to subsidies from government. That sum gives the "Household's subsidy incomes from governments and nonprofit entities (J)")
Household's Total income is equal to (K): 0
Number of household's member (parents, teenagers, kids, babies) (L)

Household's Income per capita (M): NaN
Tax on net income declared by households (N)

Tax Inequality book: Subsection 2-4-1

(PILOT fees, dues, and taxes paid to government. Yearly paid Property tax, motor vehicle tax, traffic insurance fees, all type of custom related dues, fees, and taxes for goods Imported by households themselves, yearly Licenses for TV, broadcasting, radio communication, hunting, Other Taxes, and so on.)
Tax on net income households (visible on sales records) (O)

Tax Inequality book: Subsection 2-4-2

(Some tax on sale (TOS) is visible on sales records; all of these records (receipt, invoices, etc.) should be gathered for a GDP period and the VAT, sales tax, stamp tax, motor fuel tax, motor vehicle purchase tax, tobacco tax, alcoholic beverage tax, carbonated drink tax, communication tax, amusement tax, insurance premium tax, public utility tax, and wager or bet tax, and so on written on these records should be summed up and entered here as (O) value. You should include real estate taxes you paid as purchaser or as seller (if any); they are tax on sale as well.)
Tax on net income households (Embedded in sales records) (P)

Tax Inequality book: Subsections 3-5-1 and 3-5-2 gives two estimation methods for finding (P) in your country.

(This tax burden is invisible on sales records, invoices, receipts, etc. Therefore it cannot be calculated. However, average of G20 countries in OECD database is 18%. That is, on the average, the sum of (N + O + P) is the 18% of Household's net income (F) ; it could be used as a rough estimate. You can calculate (P) amount by using estimations and enter here. Please note that, even without entering (P) amount, the sum of your (N) and (O) could be higher than 18% of your household tax on net income (F).)
Total tax refund received by household (if any) (R)

(If any tax paid back to household in the GDP period)
Household's Total Tax on net income burden is equal to (S): 0
Household Total tax Burden is equal to (U): 0
Household's Tax-to-Income ratio (T = U / H): NaN

FAIRNESS of HOUSEHOLD INCOME

If T = C then household has fair income.

If T > C then household experiences tax inequality that is overloaded tax burden and, as a consequence, income inequality.

If T < C then household experiences tax inequality that is tax percentage is lower than average, as a consequence, income inequality.

COMPARING HOUSEHOLD'S AVERAGE INCOME with COUNTRY'S AVERAGE INCOME

If M = D then household earns average income.

If M > D then household earns more than average income.

If M < D then household earns less than average income, and household's total income should be (L * (D - M)) NaN more to reach average income level of the country.