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I-am-me
Joined: 21 Feb 2006
Location: Hermit Kingdom
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 Posted: Sun Apr 15, 2012 8:53 pm Post subject: |
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| It's odd Canada advertises for overseas workers, but keeps wages low for its own citizens. With a shortage of workers you would think wages would be higher.. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Apr 15, 2012 9:04 pm Post subject: |
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| Stan Rogers wrote: |
| Weigookin74 wrote: |
| The Cosmic Hum wrote: |
| wylies99 wrote: |
| Captain Corea wrote: |
| wylies99 wrote: |
| I love it when Canadians claim that taxes are low in Canada. Reality says otherwise. |
Odd. In my entire life I don't recall a Canadian saying that. |
I've heard it mumbled more than once in Seoul Pub and Rocky Mountain Tavern. |
Well...the sources that mumbled it to you probably never held jobs in Canada...right from getting drunk in university to getting drunk in Itaewon.
One pretty common thing that working Canadians do complain about a fair bit is the high taxes that they pay compared to say the States. |
The country has changed a lot in recent years, ever since our debt crisis in the 1990's. We cut spending and then taxes. If you live in Western Canada, taxes are much lower. If you live in the east or Quebec, they are much higher. But they have come down everywhere. One only need compare the rates on wikipedia or elsewhere between the US, Canada, Europe, etc. Canada's tax rates are comparible to the US and lower in some cases depending on where you live. In Canada, first 10 K of income is not taxed. US, you're taxed on first dollar you make.
I was 28 K income several years back in Canada, I recalled total deductions including pension, taxes, etc were about 12 or 13 per cent of my total income. I spoke to some Americans, maybe one from New York and another from North Carolina. They both claimed to have lost almost 25 per cent of their income from deductions. The were around 24 or 25 K income maybe.
I make the same or even less here. But the lower taxes and lower cost of livign make me best off here. Plus living in the west doesn't appeal to me. The higher exchange rate made it easier to pay debts than now. But, I guess it's still ok compared to back home. |
12-13%? Really? What tax cuts? To my knowledge, income tax is still the same as it's always been, unless your a corporation. I recall taxes being much higher in Canada. Let's not forget the double digit sales taxes there too.
I often have heard Canadians say there is no middle class in Canada. Most people there are part of a massive working class in debt to their eyeballs. |
Don't know where you were working. I was in the maritimes. My federal income tax, my provincial income tax, my employment insurance, and Canada pension plan totalled around 12 % of my paycheck every two weeks. |
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The Cosmic Hum
Joined: 09 May 2003
Location: Sonic Space
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| Posted: Sun Apr 15, 2012 9:20 pm Post subject: |
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| Weigookin74 wrote: |
| Don't know where you were working. I was in the maritimes. My federal income tax, my provincial income tax, my employment insurance, and Canada pension plan totalled around 12 % of my paycheck every two weeks. |
I won't argue with your numbers...taxation is a complex animal.
But according to the latest tax rates
The federal tax alone is a basic 15%
Then add to that provincial taxes and the rest.
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html
The other ouch is the sales tax...except for Alberta...cruising in at 5%...most provinces go from 10-15%....ouch...double up...ouch ouch!! |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Apr 15, 2012 9:59 pm Post subject: |
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| The Cosmic Hum wrote: |
| Weigookin74 wrote: |
| Don't know where you were working. I was in the maritimes. My federal income tax, my provincial income tax, my employment insurance, and Canada pension plan totalled around 12 % of my paycheck every two weeks. |
I won't argue with your numbers...taxation is a complex animal.
But according to the latest tax rates
The federal tax alone is a basic 15%
Then add to that provincial taxes and the rest.
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html
The other ouch is the sales tax...except for Alberta...cruising in at 5%...most provinces go from 10-15%....ouch...double up...ouch ouch!! |
The first 10,000 is tax free. If you make 25,000, you pay tax on 15,000 of income. Americans pay tax on 25,000 of income. The reason everyone has this basic deduction is to help poorer people. EI ans CPP premiums are so much per hundred dollars of income. Many provinces charge 9 per cent income taxes at the lowest rate. But the first 8 to 10 grand is also exempt from taxes depending on which province you live in. So, total if you are under 30 or even 25 K as a single person works out to around 12 per cent of your total pay check gone. But, in the 90's was much higher per centage as Canada was fighting a huge national debt. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Apr 15, 2012 11:29 pm Post subject: |
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Scroll down to marginal rates table.
http://en.wikipedia.org/wiki/Income_tax_in_Canada
Scroll down to yearly tables.
http://en.wikipedia.org/wiki/Income_tax_in_America
Top rate in Canada is 29% while USA is 35%, But we don't know the deductions. Corporate taxes are lower in Canada. My province has 13% HST. (Sales tax) Many US states have 8 or 9 per cent sales tax. Not too far behind. But our income taxes are lower. Also, in US many cities and counties charge additional tax to people who work there. (An extra type of income tax.) I believe that sort of thing is illegal in all Canadian provinces.
I'm not trying to brag about Canada, but since the 90's have quietly become a more capitalist and lower taxes country compared to other G7 countries. Many business magazines, such as Forbes, praise Canada for it's business climate.
We use to be heavily taxed and socialist with high unemployment. Our debt crises in the 90's forced a change in direction. Now, we are more free enterprise. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Apr 15, 2012 11:30 pm Post subject: |
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| Americans also have state and federal death taxes, which we do not have in Canada. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Apr 15, 2012 11:31 pm Post subject: |
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| Weigookin74 wrote: |
| Americans also have state and federal death taxes, which we do not have in Canada. |
So far as I know, our sales taxes and gasoline exise taxes are a little higher than the USA, but most other things are lower. |
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Weigookin74
Joined: 26 Oct 2009
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Weigookin74
Joined: 26 Oct 2009
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Hugo85
Joined: 27 Aug 2010
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| Posted: Mon Apr 16, 2012 12:01 am Post subject: |
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| Max federal-only rate is 29%, but you need to add your provincial tax, which is anywhere from 4 to 24% depending on income and province. The rate of 24% belonging to the retarded province of Quebec (which I hail from) for a maximum total rate of 53%. |
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The Cosmic Hum
Joined: 09 May 2003
Location: Sonic Space
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| Posted: Mon Apr 16, 2012 12:15 am Post subject: |
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| Weigookin74 wrote: |
| The Cosmic Hum wrote: |
| Weigookin74 wrote: |
| Don't know where you were working. I was in the maritimes. My federal income tax, my provincial income tax, my employment insurance, and Canada pension plan totalled around 12 % of my paycheck every two weeks. |
I won't argue with your numbers...taxation is a complex animal.
But according to the latest tax rates
The federal tax alone is a basic 15%
Then add to that provincial taxes and the rest.
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html
The other ouch is the sales tax...except for Alberta...cruising in at 5%...most provinces go from 10-15%....ouch...double up...ouch ouch!! |
The first 10,000 is tax free. If you make 25,000, you pay tax on 15,000 of income. Americans pay tax on 25,000 of income. The reason everyone has this basic deduction is to help poorer people. EI ans CPP premiums are so much per hundred dollars of income. Many provinces charge 9 per cent income taxes at the lowest rate. But the first 8 to 10 grand is also exempt from taxes depending on which province you live in. So, total if you are under 30 or even 25 K as a single person works out to around 12 per cent of your total pay check gone. But, in the 90's was much higher per centage as Canada was fighting a huge national debt. |
hmm...
Americans also get standard deductions and personal exemptions...which come pretty close to the $10,000 mark...$9,500.
When you add the lowest highest-level provincial tax...again Alberta at 10%...then the total tax would be roughly 39%...not sure what the state tax is.
When you add the provincial sales taxes...things really add up and overall Canadian taxes take a hefty bite out of wallet.
But, and this is a pretty big but...basically, my original point was, along with the Captain,
I have never once heard a Canadian speak of low tax rates....until now that is.
By the way...in keeping with big butts. 
http://www.youtube.com/watch?v=reTx5sqvVJ4 |
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Hugo85
Joined: 27 Aug 2010
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| Posted: Mon Apr 16, 2012 4:44 am Post subject: |
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| The Cosmic Hum wrote: |
| Weigookin74 wrote: |
| The Cosmic Hum wrote: |
| Weigookin74 wrote: |
| Don't know where you were working. I was in the maritimes. My federal income tax, my provincial income tax, my employment insurance, and Canada pension plan totalled around 12 % of my paycheck every two weeks. |
I won't argue with your numbers...taxation is a complex animal.
But according to the latest tax rates
The federal tax alone is a basic 15%
Then add to that provincial taxes and the rest.
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html
The other ouch is the sales tax...except for Alberta...cruising in at 5%...most provinces go from 10-15%....ouch...double up...ouch ouch!! |
The first 10,000 is tax free. If you make 25,000, you pay tax on 15,000 of income. Americans pay tax on 25,000 of income. The reason everyone has this basic deduction is to help poorer people. EI ans CPP premiums are so much per hundred dollars of income. Many provinces charge 9 per cent income taxes at the lowest rate. But the first 8 to 10 grand is also exempt from taxes depending on which province you live in. So, total if you are under 30 or even 25 K as a single person works out to around 12 per cent of your total pay check gone. But, in the 90's was much higher per centage as Canada was fighting a huge national debt. |
hmm...
Americans also get standard deductions and personal exemptions...which come pretty close to the $10,000 mark...$9,500.
When you add the lowest highest-level provincial tax...again Alberta at 10%...then the total tax would be roughly 39%...not sure what the state tax is.
When you add the provincial sales taxes...things really add up and overall Canadian taxes take a hefty bite out of wallet.
But, and this is a pretty big but...basically, my original point was, along with the Captain,
I have never once heard a Canadian speak of low tax rates....until now that is.
By the way...in keeping with big butts.
http://www.youtube.com/watch?v=reTx5sqvVJ4 |
That is a maximum tax rate for the money earned over 132,406$ though, if one earns 132k a year in alberta then they pay 28,020 to federal and 13,241$ to provincial which works out to 31.16% of income.
Although Quebec really does pay high taxes it isn't so bad in the rest of Canada, especially when you consider health care is included. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Mon Apr 16, 2012 4:59 am Post subject: |
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| Hugo85 wrote: |
| Max federal-only rate is 29%, but you need to add your provincial tax, which is anywhere from 4 to 24% depending on income and province. The rate of 24% belonging to the retarded province of Quebec (which I hail from) for a maximum total rate of 53%. |
Maximum tax is only on a certain percentage of income. If you make 140,000 a year, you pay 29% on any amount over $132,406. So, you're paying 29% on $7,594. From $85,414 - $132,405, you pay 26% ($46991). From $42,707 - $85,413, you pay 22% ($42706). From $10,823 - $42,706, you pay 15% ($32,706). Your first $10,000 you pay nothing.
So, doing the math:
29% 2206.26
26% 12217.66
22% 9395.32
15% 4905.90
Total federal tax bill on $140,000 income is $28,725.14.
You're paying 20.5 % of your income in taxes to the Federal government. Provincial taxes work the same way. Quebec is the highest, while Eastern Canada is higher than Western Canada.
Add EI ad CPP premiums which cap off at around $100,000. (But don't quote me on that. I didn't look it up.) If you make millions or billions of dollars, you are obviously paying much much more of your income at the 29% rate. Which means you are paying a much higher per centage of your income to the Federal government. In a progressive tax system, the more you make, the more you pay. Of course there are deductions and such that rich folks use to pay less.
As for Americans there may be a tax credit on your first 9 grand, but you may have to file for it. In Canada, the deductio is automatic and made the income tax filing much more easy for individuals. People in ower incomes could simply file their taxes by themselves if they knew how to read. Richer people would rely on accountants to get their taxs down every year.
I think the US is more complicated. In America, you must file all taxes seperately (state, county, and Federal). In Canada, the province you live in includes a form within the Federal tax forms. The Feds collect both from you and remit the provincial portion to the provinces. Much more simple and convenient. Just follow the tables and calculation instructions. I did my own taxes every year. Screw giving money to H&R block for something I could do myself. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Mon Apr 16, 2012 5:04 am Post subject: |
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| If you make 25,000 a year, you pay 15 % on 15,000 which is $2250.00. Your Federal income taxes are 9% of your income. My province was around 9% in the lowest bracket, maybe? can't remember that exactly. So, 1350 for prov taxes under similiar formula. Total about 14%, plus some small amount of EI and CPP deductions. Maybe 15% total deductions. But I always claimed some minor things. So, it seemed I paid 12 or 13 % of my income when I lived there. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Mon Apr 16, 2012 5:05 am Post subject: |
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| Canada's taxes are better than many other western countries. But Korean taxes are a much lower rate and are therefore a much better deal for us. |
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