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* (Edit: Leaving original for traceability, but note my math was incorrect as per subsequent comment:) * Depends on where and depends how you're counting it.
by NikolaNovak 6y ago
* (Edit: Leaving original for traceability, but note my math was incorrect as per subsequent comment:) *
Depends on where and depends how you're counting it.
In Ontario, Canada, and I'm not an accountant so very approximately based on GoC website:
At ~~$150k CAD you are at 29% federal + 12 % Provincial tax.
On anything you buy though you get another 13% VAT
So now we are at 54%, plus CPP and EI.
Plus any other taxes - property, land transfer, etc - overall it's well above 50% for what would be ~100k USD
- drpgq 6y agoAs an Ontarian it is frustrating how the marginal tax rate has risen over 50% over the last decade, but ignorant people think things are the same as in the US. Of course capital gains on primary residences is taxed at 0% so it isn't really surprising that real estate and its financialization is Ontario's main industry.
- NikolaNovak 6y agoI'm actually with the OP - taxes as such don't offend me; I'm more concerned to get value out of them / their efficiency and purpose, rather than what they are in absolute terms. But wanted to point out that 50% is not unheard of and doesn't have to be in "millionaire" category of income.
- amscanne 6y agoI don’t think it’s just that it has risen over 50%, the increases over the last ~6 years are quite rapid. Consider BC [1]: Top income tax bracket in BC in 2013: 43.7% Top income tax bracket in BC in 2014 and 2015: 45.8% Top income tax bracket in BC in 2016 and 2017: 47.7% Top income tax bracket in BC in 2018 and 2019: 49.8% Top income tax bracket in BC starting in 2020: 53.5%. I believe that there have been similar effects in ON from increases & new brackets, on both the federal and provincial level. [1] https://twitter.com/cperciva/status/1229900065726054400?s=21 https://twitter.com/cperciva/status/1229900065726054400?s=21
- deleted 6y ago[deleted]
- sandworm101 6y agoDon't forget the tax brackets: 2015 top bracket: "over $151,050" 2019 top bracket: "over $205,842" So anyone anywhere near that bracket, despite the increased percentages, is probably paying less tax overall.
- drpgq 6y agoHow would they be paying less overall? They just added new brackets.
- drpgq 6y agoThe rapidity is similar in Ontario. I think that's why the public still thinks that the top rates are around the 2013 values and say we need to raise the top rates higher.
- gorgoiler 6y agoWouldn’t operating real estate as a financial market all involve secondary or fund-owned residences, and therefore be subject to capital gains tax?
- cecilpl2 6y agoYou are confusing marginal and effective tax rate, a very common mistake. At $150k you pay only 29%+12% on each additional dollar, but your earlier dollars were taxed much less. https://www.taxtips.ca/calculators/basic/basic-tax-calculator.htm https://www.taxtips.ca/calculators/basic/basic-tax-calculato... is a good resource - it shows that your effective tax rate in Ontario on $150k gross is 30.3%. You probably also contribute 18% to your RRSP on that huge salary, which drops your effective tax rate to about 27.4%. Also, you aren't paying 13% VAT on everything you buy - lots is exempt like food and your mortgage/rent. Even if you spend every dollar of your net income, VAT is probably closer to 8% of your total net income (which is 72.6% of your gross, so 5.8% of your gross going to VAT). CPP and EI total $3754 in 2020, so that's another 2.5% total. So that's a total of 35.8% tax on your gross salary. Also note it's much less if you have any common deductions, like children, dependents, education expenses, etc.
- NikolaNovak 6y agoFair point and I stand corrected :)