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Re: Canadian Tax structure (was Obama-Care: This Is What It Will Be Like)[Subject Prev][Subject Next][Thread Prev][Thread Next]
- To: <seaint(--nospam--at)seaint.org>
- Subject: Re: Canadian Tax structure (was Obama-Care: This Is What It Will Be Like)
- From: Paul Ransom <ad026(--nospam--at)hwcn.org>
- Date: Wed, 15 Jul 2009 08:38:22 -0400
For those who would like the real information: In Canada, we have a "progressive tax rate. Make more money, pay increasingly higher marginal taxes. Personal income tax rate is different in each province since the provincial rates are layered on the Federal rates and collected by the Federal gov't on one tax submission. Some Provinces have additional surtaxes that are targeted to programs such as health care. It should be noted that if you look at the TOTAL tax structure between US and Canada, the effects are not very different on the individual. On a case by case basis any family may be paying more "taxes" depending on their jurisdiction (e.g. Cities in Canada cannot levy employment taxes). Some forms of income are only taxed as a partial contribution to your taxable income (e.g. make $1, only add $0.50 to your TAXABLE income). So the actual marginal tax rates can be deceptive. Marginal tax rates in Ontario (2008) for an individual (Combined Federal and Provincial before surtaxes or rebate credits): On the first $38,000 of TAXABLE income; 21% (say $50,000 employee gross pay) on the portion over $38,000 but less than $76,000; 31% on the portion over $76,000 but less than $124,000; 37% on the portion over $124,000; 38% This has been incredibly simplified for presentation. Effects of currency exchange and income variances (e.g. buying power) have not been considered for useful comparison to US based wage earners. Spouses (religious, civil, common-law, or simply living as a Family unit) have some income portability between higher and lower wage earners. So the marginal tax rates can be even more deceptive at the family level. Simplistically, the marginal rates for an individual making $100,000 (as above) may be higher than the marginal rates for a 2 income Family making $100,000. My experience: Comparing the cost of living in disposable income after ALL effects of ALL taxes, purchasing services not supplied by Government and retained income purchasing power, I found that the cost of living in one US jurisdiction was almost penny for penny the same as in the Toronto area of Southern Ontario. One of the biggest influences was the higher cost of food partly due to sales taxes on basic groceries in the US stores in that state. YMMV. I have seen similar results from studies for small business, primarily considering Ontario vs New York state. I have not seen studies including the Cayman Islands but I am aware of certain financial and non-financial benefits of such a situation. Regards Paul -- Paul Ransom, P.Eng. ph 905 639-9628 fax 905 639-3866 ad026(--nospam--at)hwcn.org > From: Bill Polhemus <bill(--nospam--at)polhemus.cc> > Remember those are only Canadian FEDERAL taxes. My understanding that > Provincial and local taxes are also typically higher than their US > counterparts. > > William L. Polhemus, Jr. P.E. > Via iPhone 3G > > On Jul 14, 2009, at 12:02 PM, Mark Johnson <markajohn(--nospam--at)yahoo.com> wrote: > >> >> >> in Canada >> Single-Parent Household with $35,000 total income paid 59.6% total >> taxes >> Two-Parent Household with $65,000 total income paid 47.7% total taxes >> >> in the US >> Single Parent Household with $35,000 total income paid 31.25% total >> taxes >> Two-Parent Household with $65,000 total income paid 34.55% total taxes ******* ****** ******* ******** ******* ******* ******* *** * Read list FAQ at: http://www.seaint.org/list_FAQ.asp * * This email was sent to you via Structural Engineers * Association of Southern California (SEAOSC) server. To * subscribe (no fee) or UnSubscribe, please go to: * * http://www.seaint.org/sealist1.asp * * Questions to seaint-ad(--nospam--at)seaint.org. Remember, any email you * send to the list is public domain and may be re-posted * without your permission. Make sure you visit our web * site at: http://www.seaint.org ******* ****** ****** ****** ******* ****** ****** ********
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