Follow Your Money: Taxes II; The Uninvited Guests of Personal Finance.
Issue 8: Personal Income Taxes: "Hey thanks for hustling, now hand over your share"
Hi friends,
Happy Tuesday 👋🏾. Welcome to Issue 8! Last week, we talked about consumption taxes.
This week, we dive deep into personal income taxes. 🎯🚀
TAXES II
Personal Income Taxes: “Hey thanks for hustling, now hand over your share."
Not to sound like a broken record but let’s face it 🙅🏾♂️. No matter the size of your personal income, it’s for sure not small enough to be untaxed and definitely not big enough to be untaxed. 😋
Either way, it’s one of those cases where you can’t have your cake and eat it or eat your cake and have it (whichever one is correct). 😌
So let's talk about Personal Income Tax, shall we?
TLDR: Personal Income Tax is that slice of your hard-earned dough that the government just can't resist taking. 🙅🏾♂️😩
Personal Income Tax is the money the government collects from your earnings. It's their way of saying, "Hey, thanks for hustling, now hand over your share." 🎯😩
Good news: when it comes to personal income tax, not all income is taxed equally.🎯
The amount you pay in Personal Income Tax depends on your income level. The more you make, the more they take. It's like a never-ending game of financial hide-and-seek.🎯
The concept of taxable income refers to the portion of your earnings that is subject to taxation after deducting eligible expenses and allowances.🎯
Now, there are tax brackets. The government categorizes your income into different brackets, each with its own tax rate allowing you to get deductions and exemptions. 🎯
As you earn more, you move into higher tax brackets, resulting in a higher percentage of your income owed in taxes.🎯
Deductions and exemptions are like little treats the government gives you to ease the pain of paying taxes. Think of them as rewards for being a responsible citizen.
It's like finding a dollar bill in your pocket when doing laundry – a small victory.🎯
There's more to it. Personal Income Tax is not just about giving away your hard-earned cash. It's also an opportunity for you to contribute to society. 🎯
Personal Income Tax is like being a superhero, except your power lies in funding schools, hospitals, and public infrastructure. 🎯
Final Takeaway🤌🏾: With your personal income taxes, you likely do not have control over how much taxes you pay on your income but you, my friend🙂, for sure have control over how much taxes you pay on your consumption. 💯
With you being taxed on both ends, there’s one way to avoid the double taxation though. Last time I checked? By sticking to your budget!
In Issue 2, we talked about ways to slay your bills and maintain your vibes. 👈🏾✨
FINANCIAL NEWS IN AFRICA.
connecting dots across frontier markets in Africa.
Takeaway: The short version of this is that the country's central bank has increased the cost of borrowing money for banks and individuals 🙅🏾♂️. By doing so, the central bank aims to reduce the amount of money circulating in the economy and lower the effects of inflation. 👌🏾
👉🏾No doubt, this is a bitter-sweet situation but below is a reframed version of the situation, hopefully the sweet one.
Borrowing money is now an expensive hobby and focusing on your credit scores alone has consequences 🙂. T’s the time to start saving and budgeting like never before, the time to start building your debit score. 👌🏾✨
Mauritius maintains steady interest rates as inflation slows down.🫡
Takeaway: The country's central bank has neither increased nor decreased the cost of borrowing money for banks and individuals🤌🏾. Steady interest rates contribute to overall economic stability as well as ensure that borrowing costs remain relatively constant.👌🏾
Mauritius is truly crushing its economic goals and if the country maintains the pace, good days lie ahead.✨
Takeaways: Due to the expensive hobbies of the government 😩, there are talks to double the VAT on fuel to 16% and impose new taxes on digital media content, transfer of virtual assets, and personal income tax.🙂
This increase is a result of multiple things but this is one of those cases where again we are inspired to build credit scores 😩, motivated to increase our spending habits 🥲, and rewarded by the system through high VAT. 🙅🏾♂️
Only those who are crazy enough to stick to their debit score are the ones who truly control personal finance. 💯
MONEY TRIVIA
The total income an individual earns before deductions is called ____🤔
Most countries use a _____ tax system, where the tax rate increases as the taxable income increases.🤔
An amount of money that is subtracted directly from the tax owed.🤔
RESOURCE LIBRARY
Opportunities
Carnegie Mellon University announced $275 million in funding from Mastercard. The funding is geared towards providing “educational and career experiences for students across the continent." 🚀🚀
Win $10,000 at the Yale Drama Series. The Yale Drama Series is seeking submissions for its 2024 playwriting competition.
👉🏾According to the website, the winner of this annual competition will be awarded the David Charles Horn Prize of $10,000, publication of their manuscript by Yale University Press, and a celebratory event. ✨🫡
From Waste to Art: Apply for the 2023 RCE YOUTH ART CHALLENGE 🎨🚀
Apply for the Social Shifters Global Innovation Challenge 2023 and a chance to win up to $10,000. 🫡 🚀
TRIVIA ANSWERS💯
Gross Income
Progressive
Tax Credits
👉🏾 Finally, here’s our quote of the week.
“When they go low, we go high.”
-Michelle Obama.
Until next time,
Dulra ❤️
Founder/CEO, Dot.