APPENDIX 1 - ESTIMATED COST OF POLICY FOR FEDERAL GOVERNMENT, ONTARIO AND

STEP 3: CALCULATE TAXES PAYABLE FOR VARYING LEVELS OF THE EARNINGS DISTRIBUTION WITH AND WITHOUT THE POLICY RESET Table A2, below, outlines the calculations forming the basis for the estimated revenue loss attributed to the policy. [...] The tax calculations use the midpoints of these categories and incorporate the basic personal exemptions for the year 2022. [...] Column 5, “Tax on Secondary Earnings (No Reset),” is calculated as the difference between the tax on combined main and secondary earnings (Column 4) and the tax on main job earnings alone (Column 3). [...] It is calculated by subtracting the tax on secondary earnings with the reset applied (Column 7) from the tax on secondary earnings without the reset (Column 5). [...] * Estimated taxes on secondary earnings “With Reset” are computed from the beginning of the progressive tax scale, applying the basic personal tax credits as if these were the initial earnings of the year.