Comments on: The Canadian Tax Bracket System http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/ A personal finance blog written by Preet Banerjee Thu, 09 Sep 2010 05:57:13 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Michael MacDonald http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-6498 Michael MacDonald Tue, 03 Aug 2010 14:49:45 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-6498 this is misleading the tax rate and health care benefits depend on the province. there is a common myth now a days that, canadians are taxed to death because of our health care system this is not true.. you end up paying a lot less in totality than if you were an american with health insurance that's a fact this myth is being created in order to discredit public health care please be careful not to be part of this this is misleading
the tax rate and health care benefits depend on the province.

there is a common myth now a days
that, canadians are taxed to death because of our health care system
this is not true..
you end up paying a lot less in totality than if you were an american with health insurance
that’s a fact
this myth is being created in order to discredit public health care
please be careful not to be part of this

]]> By: Sean Williams http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-94 Sean Williams Wed, 21 Apr 2010 16:34:16 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-94 Wow, I see they've finally eliminated the incidious little line on the return called "surtax", where you figure out the tax amount using the brackets, and then add an additional 50% to it. That made the rate WAYYYY more than advertised. They still do the trick where they don't reduce your taxable income using your deductions (which would reduce the number of dollars in the highest bracket) but rather they "give" you non-refundable tax credits, which reduce the tax dollars under the lowest rate. Don't forget about each additional bucket the Feds keep for CPP, EI, and then every other level of tax you pay such as municipal property taxes, federal GST, and then provincial taxes, surtaxes, fees, and hidden taxes in gas, etc. You are still quite readily being RAPED by the government as a whole. Anything that any level of government takes from you is part of "taxes". There is a constant shift of money transferred between levels of government as "transfer payments". If city "X" doesn't dance like a monkey for the Feds/Prov, they cut the flow of transfer payments, and they city turns around and raises fees, mill rates, and ups the value of properties. In the end there is only one taxpayer - you. Wow, I see they’ve finally eliminated the incidious little line on the return called “surtax”, where you figure out the tax amount using the brackets, and then add an additional 50% to it. That made the rate WAYYYY more than advertised.

They still do the trick where they don’t reduce your taxable income using your deductions (which would reduce the number of dollars in the highest bracket) but rather they “give” you non-refundable tax credits, which reduce the tax dollars under the lowest rate.

Don’t forget about each additional bucket the Feds keep for CPP, EI, and then every other level of tax you pay such as municipal property taxes, federal GST, and then provincial taxes, surtaxes, fees, and hidden taxes in gas, etc. You are still quite readily being RAPED by the government as a whole.

Anything that any level of government takes from you is part of “taxes”. There is a constant shift of money transferred between levels of government as “transfer payments”. If city “X” doesn’t dance like a monkey for the Feds/Prov, they cut the flow of transfer payments, and they city turns around and raises fees, mill rates, and ups the value of properties. In the end there is only one taxpayer – you.

]]> By: ZDude http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-93 ZDude Wed, 07 Apr 2010 16:06:25 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-93 For any who are confused, this is exactly how to calculate your marginal tax rate using his original example of an income of $130,000. I rounded off the tax rate percentages for simpler calculations. There are no taxes for the initial $10,320 so we'll start with the next bracket: ($12,269-$10,321)15% = $292.20 ($15,658-$12,270)28% = $948.64 ($36,848-$15,659)22% = $4661.58 ($40,726-$36,849)25% = $969.25 ($64,881-$40,727)31% = $7487.74 ($73,698-$64,882)33% = $2909.28 ($76,442-$73,699)35% = $960.05 ($81,452-$76,443)39% = $1953.51 ($126,264-$81,453)43% = $19268.73 ($130,000-$126,265)46% = $1718.10 Add those numbers up and you get $41,169.08 Taxes are not difficult or complex. It just has to be explained correctly. Here's a good link about marginal and average tax rates. http://www.maxi-pedia.com/marginal+average+tax+rate+difference For any who are confused, this is exactly how to calculate your marginal tax rate using his original example of an income of $130,000. I rounded off the tax rate percentages for simpler calculations. There are no taxes for the initial $10,320 so we’ll start with the next bracket:

($12,269-$10,321)15% = $292.20
($15,658-$12,270)28% = $948.64
($36,848-$15,659)22% = $4661.58
($40,726-$36,849)25% = $969.25
($64,881-$40,727)31% = $7487.74
($73,698-$64,882)33% = $2909.28
($76,442-$73,699)35% = $960.05
($81,452-$76,443)39% = $1953.51
($126,264-$81,453)43% = $19268.73
($130,000-$126,265)46% = $1718.10

Add those numbers up and you get $41,169.08

Taxes are not difficult or complex. It just has to be explained correctly. Here’s a good link about marginal and average tax rates.

http://www.maxi-pedia.com/marginal+average+tax+rate+difference

]]> By: Preet http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-92 Preet Tue, 23 Mar 2010 04:34:41 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-92 @wow - please read the post again. The third bracket is not wrong, it just looks wrong - explanations provided in the comments. And 46.41% is the MTR not the average tax rate for a $130,000 income. @wow – please read the post again. The third bracket is not wrong, it just looks wrong – explanations provided in the comments. And 46.41% is the MTR not the average tax rate for a $130,000 income.

]]> By: wow http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-91 wow Mon, 22 Mar 2010 19:09:39 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-91 wow not understanding, the third bracket is the wrong % and 46.41% of $130 000 is $56 433 not 41k who does the math you better do it again wow not understanding, the third bracket is the wrong % and 46.41% of $130 000 is $56 433 not 41k who does the math you better do it again

]]> By: The Canadian Tax Bracket System « CTYA`s Blog http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-90 The Canadian Tax Bracket System « CTYA`s Blog Tue, 02 Mar 2010 17:12:44 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-90 [...] http://www.wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/ var addthis_pub = ''; var addthis_language = 'en';var addthis_options = 'email, favorites, digg, delicious, myspace, google, facebook, reddit, live, more'; [...] [...] http://www.wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/ var addthis_pub = ''; var addthis_language = 'en';var addthis_options = 'email, favorites, digg, delicious, myspace, google, facebook, reddit, live, more'; [...]

]]> By: Patrick http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-89 Patrick Mon, 22 Feb 2010 18:04:58 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-89 Patrick: so u don't think it is theft? What is your definition of the word theft?! Patrick: so u don’t think it is theft? What is your definition of the word theft?!

]]> By: Patrick http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-88 Patrick Mon, 22 Feb 2010 17:24:27 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-88 Jeez... I just want everyone to notice that there are at least two different "Patricks" posting here. I'm not so naive as to think that taxation is theft! Jeez… I just want everyone to notice that there are at least two different “Patricks” posting here. I’m not so naive as to think that taxation is theft!

]]> By: Patrick http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-87 Patrick Mon, 22 Feb 2010 15:42:56 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-87 Taxation is theft. <blockquote>"<i>Only</i> the State obtains its revenue by coercion, by threatening dire penalties should the income not be forthcoming. That coercion is known as "taxation," although in less regularized epochs it was often known as "tribute." Taxation is theft, purely and simply, even though it is theft on a grand and colossal scale which no acknowledged criminals could hope to match. It is a compulsory seizure of the property of the State's inhabitants, or subjects." - Murrray N. Rothbard</blockquote> Taxation is theft.

“Only the State obtains its revenue by coercion, by threatening dire penalties should the income not be forthcoming. That coercion is known as “taxation,” although in less regularized epochs it was often known as “tribute.” Taxation is theft, purely and simply, even though it is theft on a grand and colossal scale which no acknowledged criminals could hope to match. It is a compulsory seizure of the property of the State’s inhabitants, or subjects.” – Murrray N. Rothbard

]]> By: Chris http://wheredoesallmymoneygo.com/the-canadian-tax-bracket-system/#comment-86 Chris Mon, 22 Feb 2010 15:21:24 +0000 http://symbiantcapital.com/2007/10/15/the-canadian-tax-bracket-system/#comment-86 You forgot PST, GST and the soon to come HST. That is why it is over 50% for those making incomes greater than $100,000! You forgot PST, GST and the soon to come HST. That is why it is over 50% for those making incomes greater than $100,000!

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