Comments on: Income Tax – The Canadian Tax Bracket System

By: Gregory Peck

Gregory Peck — Fri, 27 Apr 2012 17:35:59 +0000

Huh? Speak English, I don’t understand what you are trying to say.

By: AdeoluSanyaolu

AdeoluSanyaolu — Sun, 22 Apr 2012 00:24:37 +0000

Ok assuming with your tax calculation someone making $130,000 goes home with Net of about 88k. Now remember that in this 88k the person still have to pay additional 13% on every cent you spend afterwards in Ontario. That leaves him $77,281.23 eventually.

So basically Total Tax Bill / $130,000 Total Income = 31.67% Average Tax Rate + 13%HST making it a Total Combine tax of rate of 44.67% Then you will need to add property tax on the balance Net you have. So clearly Govt is collecting way more than 50% of your income at anytime giving.

By: I

Tue, 20 Mar 2012 12:27:00 +0000

You won’t get taxed until you’ve made over $10 320

By: I

Tue, 20 Mar 2012 12:23:18 +0000

Apparently, the poor guys in the $12 270 – $15 658 range have to pay more than everyone else making less than $40 727. =P

By: jenn

jenn — Thu, 15 Mar 2012 00:19:29 +0000

And why is that fair? You’ve left out any reasoning behind your syllogism.

By: jenn

jenn — Thu, 15 Mar 2012 00:13:07 +0000

Public health care is actually a lower standard than private health care.

If I earn 300,000 – and in Canada – I pay the income tax on this – about $119,000. Compare to Florida, where there is no state income tax, there is only Federal Income Tax (which, for this tax bracket, is 33%). Therefore in Florida, I would only pay $99,000. This is a difference of $20,000 a year in income. Forget about the fact that the sales tax there is only 6% compared to Canada’s 13%.

Are you saying that health care premiums in the US are more than 20,000 a year?? That’s utterly ridiculous. Even if premiums were as high as $1,000 (which they aren’t), that would only be $12,000. For the $12,000 – you are getting the best health care the world has to offer. Much shorter waiting times, more advanced medicine, beautiful hospitals, and the best doctors in the world. In Canada, you pay $20,000, and what do you get? “Free Health Care”??? Hardly. You get second rate, public health care, long waiting lists, and almost no return for your money.

I have a chronic illness and have been a patient in four health care systems – Canada, the US, Ireland and England. England’s two-tier system was probably my favourite (I was in the public branch, and it still far exceeded Canada’s health care). In Canada, I was subject to negligence, malpractice, waiting times so long it was extremely detrimental to my health, and a poor standard of health care in general. When I lived in San Francisco, I called up a specialist, got an appointment 7 days later (I had to wait 9 months in Canada. Nine months), paid $250, got the prescriptions I needed, and had three tests ordered over the next two weeks that would have taken about a year to get, altogether, in Canada.

If you think Canada has a wonderful health care system, you’ve either never been sick (i.e. know nothing about it, except in theory), or you’ve never been a patient in any other health care system.

By: jenn

jenn — Thu, 15 Mar 2012 00:02:02 +0000

*humanly

By: jenn

jenn — Wed, 14 Mar 2012 23:59:30 +0000

I see a loop-hole in your logic. Perhaps you can explain it? Why would you be so gung-ho to introduce tax strategies that drive the highest income earners, the brightest of the human resource pool, to emigrate? Remember, Canada is very close to the US, and the US is more than happy to take Canada’s most intelligent, most educated, white/english-speaking professionals.

I, for example, am a third year law student in one of Canada’s best law schools. I also hold a law degree from London (England). I plan to immigrate to the US as soon as humanely possible – for the same reasons most of the other professionals leave – higher salaries, lower taxes, significantly better climate (I am going to California), and superior services (i.e. Private Health care in the US has been shown to be much better quality than standard-Canadian health care, and easily affordable to my tax bracket, if not covered by your employer). So, what is the benefit to Canada to “raise the tax bracket for the rich”? The US have made it so easy to get a professional-TN visa (it took me 30 mins), so it’s easier than ever before for Canadians to leave the huge tax-burden (without equivalent return of services) of Canada and move to the US. Raise taxes, making the hard work of professionals even less beneficial to them, and they will leave. Why would they stay? What I would like you to explain is what you perceive the incentive of the highest-income earners (who you are so keen to tax) to be in staying in Canada. I’ve already planned my emigration (and I am far from the only one), so obviously I didn’t see any incentive.

By: jenn

jenn — Wed, 14 Mar 2012 23:49:17 +0000

Well…individuals have been able to “income split” for a long time now. This is not a “new” idea. High income earners have always been able to split their income between themselves and their spouses to put themselves in a lower tax bracket. If you’re really smart, you can also incorporate your profession. This is a wonderful new tax savings mechanism – a doctor, for example, who earns (for the sake of this example) $300,000 – can declare this as “gross” income to the corporation, and allot themselves a salary FROM that money (say, $50,000, to put them in a very low tax bracket) – all the other money just goes into the corporation and is available to be spent! Beautiful way to avoid taxes!!

By: JustinVN

JustinVN — Tue, 14 Feb 2012 23:28:53 +0000

@jkro There is never a scenario in which a higher salary actually nets you less money after tax. You’re only taxed the higher percentage on the amount above the bracket. If your salary moves from $76,000 to $80,500 then you’re paying the same tax that you originally were on the first $76,000. On top of that, you’re earning $4,500 taxed at 39.41%. So you have to ask yourself – is the part-time job worth a net income of roughly $2,700 after tax? You’re not losing any money, you’re just not earning as much as somebody else could have if they also took on that $4,500 part time job.