Citizens income calculations

	A	B	C	D	F	G
1	Calculations for citizens income in UK		income tax	Nat ins
2	First estimate
3	Average UK salar	2016	£27,500.00
4	threshold		£11,000.00	8060	employed	31500000
5	high rate threshold		£43,000.00		ESA	1320000
6	Taxable		£16,500.00	£19,440.00	economically inactive	8729885.057
7	Base rate		20%	0.12	% inactive on esa	0.15120474
8	Current tax or NI paid		£3,300.00	£2,332.80	% inactive who get new money	0.84879526
9	Assumed citizens income per week		£150.00
10		per year	£7,800.00
11	New pre tax income		£35,300.00
12	New taxable income		£24,300.00
13	Assume that average earner just breaks even on the citizens income
14	Additional tax		£7,800.00
15	Total income tax		£11,100.00
16	New base rate of tax		46%	0.12
17	New higher rate		66%	0.12
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19	However this is an underestimate since it fails to account for economically innactive
20	Percent economically inactive		21.7%
21	Pecent active		78.3%
22	So each worker will have to fund citizens income for		0.28	of another person
23	but only this fraction is new money due to esa		0.2352344463
24	which is		£1,834.83
25	% unemployed		0.048
26	JSA		78
27	increase for each unemployed		£3,744.00
28	Number of unemployed per employed		0.061
29	Cost per employed		£229.52
30	So total additional tax		£9,864.35
31	Total tax		£13,164.35
32	New Tax rate		54.2%	0.12
33	total marginal tax+ni		66.2%
34	New upper tax rate		74.2%	0.12
35	New upper marginal rate tax +NI		86.2%
36	Note that the upper rate will cut in at a salary of		£35,200.00
37	Take home pay now of person on average wage		£21,867.20
38	Take home pay with citizens income and higher tax		£19,802.85
39	Position of a worker on median income
40	Median salary	2013	£22,000.00
41	estimate for 2016		£23,500.00
42	add citizens income		£31,300.00
43	taxable income		£20,300.00
44	Additional tax paid		£6,937.38
45	net gain per week		£16.59
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