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Table D -3 Procedure for Calculating Taxes <br />Tax <br />Tax Paid <br />Payroll Tax <br />(Change in Annual Income) x (Payroll Tax Rate) <br />Federal Income Tax <br />(Change in Annual Income ) x (Federal Income Tax Rate) <br />State Income Tax <br />(Change in Annual Income) x (State Income Tax Rate) <br />Sales Tax <br />(Change in Annual Income) x (Fraction Spent on Taxable Goods) x <br />(Sale Tax Rate) <br />The values for various tax rates and parameters, applicable to Santa Ana WORK Center <br />9 <br />clients, in Table F -4 were taken from the Phase I and Phase H ROI study and are as follows: <br />Table <br />D.2 <br />As in <br />from <br />Parameter <br />Rate <br />Payroll Tax <br />15.3 <br />Additional Tax Revenue-from the Co <br />m ni <br />Federal Income Tax <br />7.4% <br />State Income Tax the case for Santa Ana WORK Cente <br />• tell <br />respondents, for calculating the total <br />ddiT4�al <br />Sales Tax the community, the additional tax re <br />enul'ofrom <br />)ondents <br />survey <br />ix revenue <br />he <br />wrrie � ity l�gc. c ' �d it vice income ed by each <br />qualified respon enof as irs c cu a e ese in ivi ua ax revenues wile then summed. <br />The steps involved in calculating additional tax revenue from the community due to a <br />single respondent are given below. <br />(a) Annualize the income information This calculation is the same as that described in step <br />(a) in section F.1. <br />(b) Calculate change in annual income This calculation is the same as that described in step <br />(b) in section F.1. <br />(c) Calculate time at new job This calculation is the same as that described in step (c) in <br />section F.1. <br />(d) Calculate cumulative additional income earned This calculation is the same as that <br />described in step (d) in section F.1. <br />(e) Calculate cumulative additional income earned by the community As discussed <br />previously in sections 2.2.2 and 2.2.3, because clients spend their income within their <br />communities, a change in income among clients leads to a change in income of the providers <br />of the various taxable goods and services that the clients purchase. This change in income of <br />the community then leads to a change in taxes paid by the community to the government, and <br />[U <br />is estimated using an income multiplier. <br />9 <br />It is assumed that the tax rates and the fractional spending on taxable goods and services <br />remain constant. <br />l�'i01•1•J <br />