Tax on TAX

[cybercoma]

On Sun News Network they said the average family, which I think they said makes 70 odd thousand, would pay 40%+ between provincial/federal income taxes and municipal taxes. I guess they probably include sales taxes as well.

That's the median family income (in 2009 it was $68,000). The tax rate depends on how the couple transfers their income between each other and what tax bracket they are in. In any case there isn't a chance that a family that makes about $70,000 per year is paying 20% federal and 20% provincial income tax.

[cybercoma]

Yep, and in BC that person would pay about $6,633 in combined federal/BC income taxes.

Even if one included EI and CPP we are talking about 21% being paid out in income taxes and CPP and EI premiums.

I do have a client who made $626,000 last year. His tax bill was about $248,000 which is pretty close to 40%.

But he's pretty rare - a guy making the top 0.3% of income and it happens to be T4 income.

Including all monies (CPP, EI) and being self-employed a person in NB that has an income of $45,000/year pays $8500. That's 18.9% combined federal (incl. self-employed EI and CPP rates, which are higher) and provincial. Municipal taxes depend where you live, but are typically another couple thousand. Then you have to consider 15% on income that you spend, including excise taxes on gasoline, alcohol, and tobacco (for smokers). So we're at $10,500. Deduct the things that don't include HST like most groceries and your mortgage, and deduct money that is saved and you're not left with much as a disposable income. So you need to add 15% on top of that. Let's say hypothetically that you pay consumption tax on $10,000. That's another $1500 in taxes during the year at 15% (an estimate to include 13% HST, plus excise taxes on things like fuel, alcohol, and tobacco). So combined you're looking at $8500 (NB has one of the highest provincial tax rates too) + $2000 (municipal property tax) + $1500 (consumption taxes). All tolled that's $12,000 on $45,000 for someone that is self-employed, so they pay double for EI and CPP. At that you're looking at 27% of gross. I'm really not sure how they get to 40%.

[Newfoundlander]

That's the median family income (in 2009 it was $68,000). The tax rate depends on how the couple transfers their income between each other and what tax bracket they are in. In any case there isn't a chance that a family that makes about $70,000 per year is paying 20% federal and 20% provincial income tax.

Just going by what they said. They're not just looking at income taxes though, they are looking at sales/sin taxes and municipal taxes.

Edited May 1, 2012 by Newfoundlander

[Tilter]

Vote them out.

Tell your friends.

Vote WHO out?????

Every government in existence has laid on taxes--- it is their only product & it's the type of thing that is self-generating. If it were possible to fire every government that has added taxes to the citizen's life burden all laws would be void, all treaties would be void & there would be NO countries, country boundaries,laws, property(which we don't own anyway) or TAXES

[Smallc]

Just going by what they said.

And they were wrong. I'm guessing it was the Fraser institute doing the analysis for them.

[cybercoma]

Just going by what they said. They're not just looking at income taxes though, they are looking at sales/sin taxes and municipal taxes.

I broke it down in the next post.

[msj]

I always find these threads funny.

As a guy who just looked at/did hundreds of personal income taxes these past two months I know that most people don't know what taxes they are paying never mind what their friends pay.

Hell, most people are clueless as to whether they are paying HST/PST on this or that item.

The amount of financial illiteracy in our society is shocking.

Yet that's how the Fraser Institute gets away with reporting their usual BS report about June being "tax freedom."

[Newfoundlander]

And they were wrong. I'm guessing it was the Fraser institute doing the analysis for them.

Yes, they must have lied.

[Smallc]

Yes, they must have lied.

I agree, they must have.

[Guest Peeves]

And they were wrong. I'm guessing it was the Fraser institute doing the analysis for them.

And why would you jump to that conclusion. Do you take issue with the Canadian Taxpayers Federation spokesman's statements in the video? If so. enlighten us with facts to the contrary on the issues he speaks to. (not tax freedom day per se)

[Bonam]

I think there would be less outrage and discontent at paying high taxes if the government was perceived to be using the money wisely and efficiently. Instead, the government (of whatever party) is seen to be wasting money year after year, scandal after scandal, inefficiency after inefficiency. Whether your particular beef is social spending or F35s, whether you're on the right or the left, I haven't heard anyone claim that overall government spending is well thought out and efficient.

When the government learns to run a balanced budget, use money wisely, and not have billions burnt on corruption, scandals, and unnecessary programs, then we'll stop complaining about paying taxes.

Edited May 1, 2012 by Bonam

[Smallc]

When the government learns to run a balanced budget, use money wisely, and not have billions burnt on corruption, scandals, and unnecessary programs, then we'll stop complaining about paying taxes.

Except that governments seem to be better at spending money (wisely) than most people do. The problem is, people are idiots.

Edited May 1, 2012 by Smallc

[punked]

And why would you jump to that conclusion. Do you take issue with the Canadian Taxpayers Federation spokesman's statements in the video? If so. enlighten us with facts to the contrary on the issues he speaks to. (not tax freedom day per se)

I am just going on record here to say the Canadian Taxpayers Federation don't know how to count. I heard one of them on the radio the other day spouting off some crazy number about MP pensions like for every dollar they put in the tax payers put in 30. When asked at how he arrived at that number he had factored in how much will be paid to these MPs over time calculating inflation in terms of those dollars as they would be calculated in 2000 dollars, he used a quote on MPs who have reached full pension even though most MPs don't along with a bunch of other misleading stats to come up with that number.

So yes I tax issue with him because the Canadian Tax Payer Federation. I believe most of their people were people who were in governments themselves sucking off the public tet.