3 ms·

I'm in the 45-49 age bracket this year. In BC (Canada), a 95th percentile income for that age is $126,000 (2021 Census). Before any deductions (specifically ret

I'm in the 45-49 age bracket this year. In BC (Canada), a 95th percentile income for that age is $126,000 (2021 Census). Before any deductions (specifically retirement investments that reduce taxable income) I'd be looking at a 26.85% tax rate, with a marginal rate of 38%. So pretty much the same rate here. Not to say that Canada's overall economy is particularly any better than the UK's, and especially Trump's tariff threats will do a number on us.

bruce511 2y ago
>> especially Trump's tariff threats will do a number on us. There will be losers certainly, but I'm not 100% sure that tarrifs for Canada are bad in the long run. Firstly, there are already reports of Canadians buying local over US goods. If that sentiment hrows, and becomes entrenched that's good. Secondly, at least gor some goods, suppliers are incentivised to explore other export markets. Again, long term, that diversification is good. Thirdly, for at least some goods, the US cannot simply ramp up production. So they'll still be buying, but their consumers will pay more. Canadian suppliers can simply increase prices as well, since any US consumer increase will be ascribed to the tarrifs. This though is somewhat balanced by Canadian oversupply. Fourthly it encourages producers to diversify somewhat to reduce over supply. In the long run a varied economy is better than one dependant on any one sector. Ultimately Canada and Mexico could come out of this stronger. While the US consumer gets used to higher prices. (Which Canada et al can take advantage of whe tarrifs are removed.)
benmmurphy 2y ago
the UK has a 20% VAT as well. I don't think the person you were replying to was taking that into account. Also, they are probably not taking into account employer NICs which are effectively the same in terms of tax incidence as employee NICs but people incorrectly treat them differently because the employer nominally pays them. But if you think about it for a second, your employer makes two payments to the government one of them is called employee NICs and one of them is called employer NICs and both of them are based on the employee's wage so it is silly to treat them differently. Though, I'm guessing Canada probably has employer payroll taxes as well. Employer NICS can get up to almost 14% so it is a significant tax in the UK.

bruce511 2y ago

>> especially Trump's tariff threats will do a number on us. There will be losers certainly, but I'm not 100% sure that tarrifs for Canada are bad in the long run. Firstly, there are already reports of Canadians buying local over US goods. If that sentiment hrows, and becomes entrenched that's good. Secondly, at least gor some goods, suppliers are incentivised to explore other export markets. Again, long term, that diversification is good. Thirdly, for at least some goods, the US cannot simply ramp up production. So they'll still be buying, but their consumers will pay more. Canadian suppliers can simply increase prices as well, since any US consumer increase will be ascribed to the tarrifs. This though is somewhat balanced by Canadian oversupply. Fourthly it encourages producers to diversify somewhat to reduce over supply. In the long run a varied economy is better than one dependant on any one sector. Ultimately Canada and Mexico could come out of this stronger. While the US consumer gets used to higher prices. (Which Canada et al can take advantage of whe tarrifs are removed.)

benmmurphy 2y ago

the UK has a 20% VAT as well. I don't think the person you were replying to was taking that into account. Also, they are probably not taking into account employer NICs which are effectively the same in terms of tax incidence as employee NICs but people incorrectly treat them differently because the employer nominally pays them. But if you think about it for a second, your employer makes two payments to the government one of them is called employee NICs and one of them is called employer NICs and both of them are based on the employee's wage so it is silly to treat them differently. Though, I'm guessing Canada probably has employer payroll taxes as well. Employer NICS can get up to almost 14% so it is a significant tax in the UK.