Quote:
Originally Posted by MarchHare
Let's imagine a low-income Canadian who makes $35k/year. Assuming the tax rates and personal exemption amounts provided by you and Red above are both accurate, that person would pay the following amount of provincial tax in Ontario, BC, and Alberta:
Ontario: $1,267.55 (5.05% of $35k - $9.9k)
Alberta: $1,700.00 (10% of $35k - $18k)
BC: $1,270.06 (5.06% of $35k - $9.9k)
So yes, low income Albertans do indeed pay more provincial income tax than low income Canadians in other provinces with progressive tax rates but lower personal exemption amounts.
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fair enough, though I don't really believe that 35k is really low income, I would class that as lower to middle. I believe that the higher exemption rate helps low income earners.
If you adjust to lets say $24,000
Alberta 24k exempt 10% = 600
Ontario 5.05 = 1267
BC 5.06 = 1271
But like I mentioned, if you raised the exemption rate in Alberta to lets say 24k
Then on a 35k line
Alberta would be $1100.00
Ontario 1267 at their current plan
BC 1270.00
You could even increase the flat tax rate by a 1 or 2% to compensate and it would still be a fairer system to the poor at or below the exemption point then the other taxes.