4 ms·

Wait until you hear that the marginal income tax rate is about the same BC Canada as it is in California and you don't have a +$500/month health insurance payme

by novok 6y ago

Wait until you hear that the marginal income tax rate is about the same BC Canada as it is in California and you don't have a +$500/month health insurance payment to make yourself or through your employer. The bad deal that american's get for their taxes is really sad.

refurb 6y ago
Just for clarity on marginal rates ($250k income, single filer, no deductions). Yes, I just arbitrarily picked $250k. No I ignored SSI+OAIS (US) because it phases out at $137,000. CA: 35% (fed) + 9.3% (state) + 1.45% (Medicare) = 45.75% BC: 33% (fed) + 20.5% (province) = 53.5%
natcombs 6y ago
+500/month health insurance payment? I heard it was more like $1400-2000 for CA startup founders and their families
- adanto6840 6y ago
  Can confirm. I'm a healthy 30-something that's married with two kids in Nevada. No state income tax here, but we pay ~$1.6k/mo for what is considered mediocre-to-poor health insurance coverage. My youngest (2.5 year old) is at the ER with my wife right now getting an x-ray (insurance & the pediatric urgent-cares all referred us to ER, no one else would x-ray <3yr olds) -- I'd guess it'll cost us at least $2-3k, assuming they say it's "not broken". Substantially more if it "is broken". Yay USA.
some_guy_there 6y ago
From what I can find online[1,2], for a dual-income family earning 250k CAD/ 250k USD, tax in BC Canada[1,2] is 33% Federal + 16.80 % State = 49.8%. For California it is 24% Federal + 9.3% State = 33.3%. Is there a big difference in other taxes (like Payroll/Social Security) between California and BC that makes the overall marginal tax same? [1] https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html#federal https://www.canada.ca/en/revenue-agency/services/tax/individ... [2] https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/tax-rates https://www2.gov.bc.ca/gov/content/taxes/income-taxes/person...
- cperciva 6y ago
  Top tax bracket in BC is 53.5%. (The "proposed new tax bracket" is happening.) Sales tax is 12% (5% federal, 7% provincial) on most products; basic groceries and rent are the most significant exemptions. Federal payroll taxes are 10.2% (pension) + 3.8% (unemployment) on the first ~$55k. BC has a 1.95% payroll tax (nominally earmarked for health care) with a small-business exemption.
- divbzero 6y ago
  Sales tax is worth considering but doesn’t contribute much to the delta: 12% HST in British Columbia [3] vs. ~8% sales tax in California [4]. [3]: https://en.wikipedia.org/wiki/Sales_taxes_in_British_Columbia https://en.wikipedia.org/wiki/Sales_taxes_in_British_Columbi... [4]: https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_Stat...
- ceejayoz 6y ago
  Health insurance (USA; upstate New York) costs me $2,300/month in premiums plus $4,000 annually in copays for a family of four. I'd happily take the higher Canadian taxes.
  - zaroth 6y ago
    That’s just because you’re in a higher income bracket. If your family of four earned less than ~$50k/year you would pay about 10% that amount for healthcare premiums and have lower deductibles. The ACA is effectively an extremely large tax on the middle class.
  - refurb 6y ago
    Sure, but most people get it through their employer and have a premium of a few hundred a month (yes, some jobs it's much higher). And yes, if you get a significant amount of care, the out of pocket can be several thousand.
  - kevindong 6y ago
    The health insurance offered by American tech companies tend to be very generous. To the point where health care costs are essentially trivial for most employees/families.
alyx 6y ago
As a Canadian living and working in the US, I encourage all those that think Canada is somehow better than US, to go give living in Canada (and paying their taxes) a try. US is a much more competitive and diverse market in every respect (even with it's shortcomings). My parents (and other immediate family), would move to the US if they could.
- xyzzy_plugh 6y ago
  Okay, I'll bite. My partner and I lived in the US for 10 years, and decided to move back. We're very glad we did. The US is much more competitive, I'll give you that, but it's not necessarily a good thing. I don't miss it. It's dog-eat-dog, every person for themselves. I'm not sure how long you've lived in the US, but the first few years we were there were pretty peachy. But the problems just keep piling up. I don't really have the patience to list everything, but the health care system _alone_ is reason enough to stick around in Canada. It's awesome. The US is a complete disaster. And I say this as someone who benefited from probably the best quality healthcare in the world during my time there.
  - refurb 6y ago
    I get a bit annoyed at which is "best". It really depends on what you're looking for. The US is great if you want a high-paying career working for world-leading company. Typically you'd make enough so that things like healthcare are an annoyance, not a financial nightmare. Canada is great if your career is not #1 and you want a government that will provide a comprehensive social safety net. Different stroke for different folks I guess.
koolba 6y ago
The trick is not to live or work in California.

by novok 6y ago

refurb 6y ago

Just for clarity on marginal rates ($250k income, single filer, no deductions). Yes, I just arbitrarily picked $250k. No I ignored SSI+OAIS (US) because it phases out at $137,000. CA: 35% (fed) + 9.3% (state) + 1.45% (Medicare) = 45.75% BC: 33% (fed) + 20.5% (province) = 53.5%

natcombs 6y ago

+500/month health insurance payment? I heard it was more like $1400-2000 for CA startup founders and their families

adanto6840 6y ago
Can confirm. I'm a healthy 30-something that's married with two kids in Nevada. No state income tax here, but we pay ~$1.6k/mo for what is considered mediocre-to-poor health insurance coverage. My youngest (2.5 year old) is at the ER with my wife right now getting an x-ray (insurance & the pediatric urgent-cares all referred us to ER, no one else would x-ray <3yr olds) -- I'd guess it'll cost us at least $2-3k, assuming they say it's "not broken". Substantially more if it "is broken". Yay USA.

some_guy_there 6y ago

From what I can find online[1,2], for a dual-income family earning 250k CAD/ 250k USD, tax in BC Canada[1,2] is 33% Federal + 16.80 % State = 49.8%. For California it is 24% Federal + 9.3% State = 33.3%. Is there a big difference in other taxes (like Payroll/Social Security) between California and BC that makes the overall marginal tax same? [1] https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html#federal https://www.canada.ca/en/revenue-agency/services/tax/individ... [2] https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/tax-rates https://www2.gov.bc.ca/gov/content/taxes/income-taxes/person...

cperciva 6y ago
Top tax bracket in BC is 53.5%. (The "proposed new tax bracket" is happening.) Sales tax is 12% (5% federal, 7% provincial) on most products; basic groceries and rent are the most significant exemptions. Federal payroll taxes are 10.2% (pension) + 3.8% (unemployment) on the first ~$55k. BC has a 1.95% payroll tax (nominally earmarked for health care) with a small-business exemption.
divbzero 6y ago
Sales tax is worth considering but doesn’t contribute much to the delta: 12% HST in British Columbia [3] vs. ~8% sales tax in California [4]. [3]: https://en.wikipedia.org/wiki/Sales_taxes_in_British_Columbia https://en.wikipedia.org/wiki/Sales_taxes_in_British_Columbi... [4]: https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_Stat...
ceejayoz 6y ago
Health insurance (USA; upstate New York) costs me $2,300/month in premiums plus $4,000 annually in copays for a family of four. I'd happily take the higher Canadian taxes.
- zaroth 6y ago
  That’s just because you’re in a higher income bracket. If your family of four earned less than ~$50k/year you would pay about 10% that amount for healthcare premiums and have lower deductibles. The ACA is effectively an extremely large tax on the middle class.
- refurb 6y ago
  Sure, but most people get it through their employer and have a premium of a few hundred a month (yes, some jobs it's much higher). And yes, if you get a significant amount of care, the out of pocket can be several thousand.
- kevindong 6y ago
  The health insurance offered by American tech companies tend to be very generous. To the point where health care costs are essentially trivial for most employees/families.

alyx 6y ago

As a Canadian living and working in the US, I encourage all those that think Canada is somehow better than US, to go give living in Canada (and paying their taxes) a try. US is a much more competitive and diverse market in every respect (even with it's shortcomings). My parents (and other immediate family), would move to the US if they could.

xyzzy_plugh 6y ago
Okay, I'll bite. My partner and I lived in the US for 10 years, and decided to move back. We're very glad we did. The US is much more competitive, I'll give you that, but it's not necessarily a good thing. I don't miss it. It's dog-eat-dog, every person for themselves. I'm not sure how long you've lived in the US, but the first few years we were there were pretty peachy. But the problems just keep piling up. I don't really have the patience to list everything, but the health care system _alone_ is reason enough to stick around in Canada. It's awesome. The US is a complete disaster. And I say this as someone who benefited from probably the best quality healthcare in the world during my time there.
- refurb 6y ago
  I get a bit annoyed at which is "best". It really depends on what you're looking for. The US is great if you want a high-paying career working for world-leading company. Typically you'd make enough so that things like healthcare are an annoyance, not a financial nightmare. Canada is great if your career is not #1 and you want a government that will provide a comprehensive social safety net. Different stroke for different folks I guess.

koolba 6y ago

The trick is not to live or work in California.