Which country taxes you the most?

[Fozzie_DeBear]

Not to mention that the US has a few nice tax breaks as well....like mortgage interest

[TurnedTheCorner]

The chart does say it's for selected countries, I don't think it's trying to be a comprehensive listing.

[Bill Bumface]

Maybe Canada has a higher portion of people who chose not to work/unemployed and all those people are counted as 0?

I know if you are self employed you pay almost nothing in personal tax.

[EddyBeers]

They are clearly allowing a small percentage of deductions.

The combined tax rate in Ontario (provincial and federal) for someone earning 50,000 is 20.2%. They are saying it is somewhere between 16-17% in Canada, that means they must be allowing for average deductions.

As shown on page 8 of the document cited from Price Waterhouse, the guy paying 31.9% of his income in income taxes must be making somewhere north of 700,000 dollars a year, assuming they live in Alberta. That is very impressive.

[I-Hate-Hulse]

Originally Posted by EddyBeers

As shown on page 8 of the document cited from Price Waterhouse, the guy paying 31.9% of his income in income taxes must be making somewhere north of 700,000 dollars a year, assuming they live in Alberta. That is very impressive.

I think you're looking at the wrong page. Page 2 is what you should be looking at - so 32% puts him bang on for the $37,128 to $74,357 bracket (combinded Federal and Prov). Payroll types usually assume no credits, unless you file the specific T form to take that into consideration.

The Economist article specified "average income" which is far less than you think. I think it's in the $20,000's which is in the lowest bracket.

EDIT: I'd say average is about $30K based on this: http://www40.statcan.ca/l01/cst01/labor01a.htm

[Reaper]

Originally Posted by Fozzie_DeBear

Not to mention that the US has a few nice tax breaks as well....like mortgage interest

In Manitoba one can claim rent paid as a tax deduction. Personally, I'd love it if I could claim my mortgage interest as a tax deduction but then we'd be in the same situation as the US with an artificially propped up economy.

[EddyBeers]

Originally Posted by I-Hate-Hulse

I think you're looking at the wrong page. Page 2 is what you should be looking at - so 32% puts him bang on for the $37,128 to $74,357 bracket (combinded Federal and Prov). Payroll types usually assume no credits, unless you file the specific T form to take that into consideration.

The Economist article specified "average income" which is far less than you think. I think it's in the $20,000's which is in the lowest bracket.

EDIT: I'd say average is about $30K based on this: http://www40.statcan.ca/l01/cst01/labor01a.htm

In order to pay 31.9% tax, you would have to earn at least 400,000, I made a typo in the previous post. I agree that after 37,128 in Alberta you pay 32%, and then it goes up from there to 39% if you are above 74,357. But when you take into account the fact that the first 8929 is tax free federally and the first 15,435 is tax free provincially, to actually pay 31.9% you would have to earn north of 400,000.

As for average income, I agree that is probably the number they used

[HotHotHeat]

Sweden's tax bracket is up to 56%, which puts them at the top of the list.

[MoneyGuy]

Originally Posted by Fozzie_DeBear

Not to mention that the US has a few nice tax breaks as well....like mortgage interest

I hope we never have that up here.

And for the poster who said that CPP, EI and such are taxes, I don't see it that way. I see CPP more as forced savings for retirement and EI more as insurance against an injury that would cause a job loss.

[Ozy_Flame]

Originally Posted by MoneyGuy

I hope we never have that up here.

And for the poster who said that CPP, EI and such are taxes, I don't see it that way. I see CPP more as forced savings for retirement and EI more as insurance against an injury that would cause a job loss.

I see EI as necessary for a slumping economy, and CPP as a 'gift' to the government because Gen X and Y will probably never see that money again. I just consider it more deducted 'tax', and use RRSP's and other portfolio options for retirement savings.

[Slava]

Originally Posted by MoneyGuy

I hope we never have that up here.

And for the poster who said that CPP, EI and such are taxes, I don't see it that way. I see CPP more as forced savings for retirement and EI more as insurance against an injury that would cause a job loss.

You beat me to this point. I would rather not pay capital gains on my principal residence than have a tax break on mortgage payments.

[Sylvanfan]

Originally Posted by Reaper

In Manitoba one can claim rent paid as a tax deduction. Personally, I'd love it if I could claim my mortgage interest as a tax deduction but then we'd be in the same situation as the US with an artificially propped up economy.

Yeah, as harsh as our tax rules seem to be....it probably does force an average person to do a better job of wealth building as most people just make the payments on their house and contribute to RRSP's to get a tax break. Those who think of ways around this to get tax breaks generally know what they're doing and are good at wealth building/creating themselves. Tends to reign in people from running too far out of control with how they spend, and not save anything.

[Mccree]

Originally Posted by MoneyGuy

I hope we never have that up here.

And for the poster who said that CPP, EI and such are taxes, I don't see it that way. I see CPP more as forced savings for retirement and EI more as insurance against an injury that would cause a job loss.

My point was to state that although Canadian Taxes are higher than most countries once you factor in "forces savings and insurance" As Canadian we pay alot less than other countries do for those same programs.

[Iowa_Flames_Fan]

A number of people have asked about taxation in the U.S.--so I'll address that, having paid tax in both countries on roughly the same amount of income.

There is no question that under 50,000 dollars, taxpayers in the U.S. pay way more tax than Canadians. Don't underestimate the value of that first 8929. In the U.S. there's a standard deduction, but it just doesn't add up to the same tax benefit--I don't know why, I only know that the bottom line is I pay more tax in the U.S. than I ever did at home.

In Canada, we basically pay provincial and federal tax. Taxation varies in the U.S. but generally there's federal and state tax, and in some cities (Philadelphia is one) there's also a city tax, which is approximately the same as your state tax, or around 12% of your income. And you can't file a city tax return, so you don't get any of that back. Then there's Social Security and Medicare taxes, which are both substantial. Basically, the tax burden here is unconscionably high, especially given the very limited services provided by government.

[Clever_Iggy]

Originally Posted by Iowa_Flames_Fan

A number of people have asked about taxation in the U.S.--so I'll address that, having paid tax in both countries on roughly the same amount of income.

There is no question that under 50,000 dollars, taxpayers in the U.S. pay way more tax than Canadians. Don't underestimate the value of that first 8929. In the U.S. there's a standard deduction, but it just doesn't add up to the same tax benefit--I don't know why, I only know that the bottom line is I pay more tax in the U.S. than I ever did at home.

Iowa - do you have an idea of how that changes for a higher tax bracket? Do tax payers in the US pay less tax than Canadians once the taxpayers income reaches a certain level?

[psicodude]

Originally Posted by Iowa_Flames_Fan

A number of people have asked about taxation in the U.S.--so I'll address that, having paid tax in both countries on roughly the same amount of income.

There is no question that under 50,000 dollars, taxpayers in the U.S. pay way more tax than Canadians. Don't underestimate the value of that first 8929. In the U.S. there's a standard deduction, but it just doesn't add up to the same tax benefit--I don't know why, I only know that the bottom line is I pay more tax in the U.S. than I ever did at home.

In Canada, we basically pay provincial and federal tax. Taxation varies in the U.S. but generally there's federal and state tax, and in some cities (Philadelphia is one) there's also a city tax, which is approximately the same as your state tax, or around 12% of your income. And you can't file a city tax return, so you don't get any of that back. Then there's Social Security and Medicare taxes, which are both substantial. Basically, the tax burden here is unconscionably high, especially given the very limited services provided by government.

Very interesting. We are always fed the line in Canada that we are way over taxed, and that average Joe American pays half the tax that his buddy in Canada would. Personally, I always accepted a higher tax rate in exchange for universal health care.

So, this begs the question...where is all of that money in the U.S. going? The military?

[burn_baby_burn]

Originally Posted by EddyBeers

In order to pay 31.9% tax, you would have to earn at least 400,000, I made a typo in the previous post. I agree that after 37,128 in Alberta you pay 32%, and then it goes up from there to 39% if you are above 74,357. But when you take into account the fact that the first 8929 is tax free federally and the first 15,435 is tax free provincially, to actually pay 31.9% you would have to earn north of 400,000.

As for average income, I agree that is probably the number they used

Are you sure about that? I thought the highest tax bracket was above $106,000.00, or close to it?

[sixpacked]

Originally Posted by Ford Prefect

Ya, me too. I wonder how comprehensive that list is therefore. Perhaps some countries have been left out. What about India, New Zealand, Scotland and a whack of others. You'd think there would be a least one South American country there too. Maybe Chile or Argentina? It doesn't look very comprehensive to me.

GST rate in NZ is 12.5% and 10% in Australia.

[Dan02]

Originally Posted by fotze

Something doesn't look right there, I've already paid the taxman $31k this year and its only March.

see your problem is you're making to much money. If you don't wanna pay taxes quit earning so much, it's really quite simple.

[Cowboy89]

Originally Posted by psicodude

Very interesting. We are always fed the line in Canada that we are way over taxed, and that average Joe American pays half the tax that his buddy in Canada would. Personally, I always accepted a higher tax rate in exchange for universal health care.

So, this begs the question...where is all of that money in the U.S. going? The military?

Actually yes. Incidently we're free riders on the issue of self-defence and in terms of new health care drugs and procedures. Americans put in the R&D in healthcare due to large pharma companies and private hospitals, and when they make a break-through as a result of billions of US dollars spent we copy them and make generic drugs and provide such procedures without bearing any of the development cost. It's big reason why our Socialized Health Care system costs less (The other being that medical labor and capital is rationed as opposed to being used when needed). On the issue of defence a lot of what the American's do to protect their interests abroad, also as a side effect protect our interests. Same thing goes for R&D, American companies and government develop military implements and we buy them years later for a fraction of the cost.