6 ms·

You don't know much about Vancouver if you think this is a realistic possibility. Vancouver, BC has barely any tech industry (a few software companies like Bus

by kjackson2012 14y ago

You don't know much about Vancouver if you think this is a realistic possibility. Vancouver, BC has barely any tech industry (a few software companies like Business Objects, and EA Sports are up there, but nothing meaningful), and the taxes are high. British Columbia has one of the highest tax rate in Canada. One of my Canadian friends told me that the 50% marginal tax rate started around $65k, although I haven't double-checked this for accuracy. You can't compete between Washington State, with no state income tax, and Vancouver, BC.

jmtulloss 14y ago
According to this, it's pretty comparable to the US if you live in California. Higher than the US if you live in Washington under their current tax laws. http://2vancouver.com/en/articles/vancouver-bc-taxes-on-income http://2vancouver.com/en/articles/vancouver-bc-taxes-on-inco...
enraged_camel 14y ago
High taxes aren't an issue, since healthcare is free and there is a very strong social safety net.
- redthrowaway 14y ago
  Also, taxes aren't high.
  - refurb 14y ago
    It's all relative, no? Long ago, when I moved to the US from Canada, I figure out what I'd owe in tax in Canada vs. what I was paying in the US. Keep in mind that I owed a home (mortgage interest deduction) and maxed out my 401k (which isn't a % of income like Canada). I was only making $50K/yr, but I was taking home an extra $5K by living in the US and not Canada. 10% more income is pretty good, no?
    - redthrowaway 14y ago
      Depends how long ago you were here, but we've been seeing tax rates fall pretty consistently for a decade.
      - refurb 14y ago
        Add it all depends on what state/provinces you're comparing. I would fathom to guess that the lowest in Canada vs. the highest in the US isn't all that different, especially if you don't take advantage of country specific deductions.
        redthrowaway 14y ago
        Well, for example, Albertans pay less tax (federal and provincial combined) than Californians, but more than Washingtonians (who pay no tax, but also have to pay for their own healthcare). Keep in mind, raw salaries tend to be higher in Canada, as is cost of living. It'd be pretty complicated to actually sit down and puzzle out real take-home wages as compared to PPP, but I doubt there'd be a massive difference.
- deleted 14y ago
  [deleted]
run4yourlives 14y ago
I live in Vancouver. Have you ever actually lived in Canada? >Vancouver, BC has barely any tech industry http://en.wikipedia.org/wiki/Economy_of_Vancouver http://en.wikipedia.org/wiki/Economy_of_Vancouver Let's just ignore the fact that MS has a development centre in Vancouver, specifically because its easier to hire game developers here. Halo is being written here. > British Columbia has one of the highest tax rate in Canada. You may want to tell that to BC: http://www.bcjobsplan.ca/?facts=b-c-lowest-personal-taxes http://www.bcjobsplan.ca/?facts=b-c-lowest-personal-taxes >One of my Canadian friends told me that the 50% marginal tax rate started around $65k, although I haven't double-checked this for accuracy. Your friend is either an idiot, or hasn't lived here in a long, long time. http://www.knv.com/cms-assets/documents/40364-256654.bcpersonaltaxrate.pdf http://www.knv.com/cms-assets/documents/40364-256654.bcperso... >You can't compete between Washington State, with no state income tax, and Vancouver, BC How's your health care? How much does that cost your employer? There are many great things about WA. I love it. However if the state is going to retroactively go after companies, BC starts to become very, very attractive. We are not that different, tax wise. We obviously need to stay competitive.
- doktrin 14y ago
  > How's your health care? How much does that cost your employer? This point is significant in and of itself. It's no coincidence that health insurance is a central point in just about every major recent union dispute. Health insurance is wildly expensive, and the cost to private corporations is not to be underestimated. Anyone who's ever had to provide health insurance to employees is acutely familiar with these costs.
- kjackson2012 14y ago
  My friend worked for EA Sports, so I trusted the information he provided, but I guess he was wrong. The marginal tax rates are 43% at 135k. Yes, Vancouver has some tech companies, but I wouldn't call it anything like a tech hub like Ottawa or Toronto. Also, UBC and SFU do not have a strong tech program. I'm sure it's average compared to most cities, but you won't find the same amounts of tech people in Vancouver like you will in Seattle or Silicon Valley. In fact, I'd bet that most above average developers in Vancouver would move to a more tech-oriented city. He also mentioned that the cost of housing in Vancouver is twice the amount of Seattle. Not sure how accurate that is either.
Maascamp 14y ago
The corporate tax rate is actually lower than it is in the US though.
- Benferhat 14y ago
  How much does Microsoft actually pay in corporate taxes to the US? [0] https://encrypted.google.com/search?q=microsoft+tax+avoidance https://encrypted.google.com/search?q=microsoft+tax+avoidanc...
c1u 14y ago
"50% marginal tax rate started around $65k" I think your friend has very poor math skills. http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2012-Personal-Tax http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2012-Pe... $65K gross income in BC nets nearly $52K; a ~20% average tax rate. This is before any eligible deductions. Even if your friend was making $1,000,000 gross salary, they'd still pay less than 42% tax on average, and that's ignoring several legal tax shelters available to all Canadians.
- refurb 14y ago
  Note, he said "marginal" not "overall" tax rate. Don't forget that BC has 12% sales tax and monthly premiums for health insurance. Income tax is only one of the many taxes.
  - run4yourlives 14y ago
    BC has (or rather will return to) a variable sales tax that floats around 7% normally. There is also a 5% GST everywhere in Canada. (Like a VAT) Correct on MSP (Medical Services Plan). Personally, I'd love to abolish this and roll it into general revenues. It's a nightmare.
  - c1u 14y ago
    ok, the highest marginal tax rate for a $65K gross salary is ~30%. Everyone gets the first ~10K tax-free, then it's ~20% (in BC) off the next ~$40K, then ~30% off the next ~$40K. Only the last ~$15K gets taxed at 30%, and you can easily reduce that to zero with available legal tax-shelters/deductions/credits. BC health premiums are $65/month for a single person. Sales tax is a consumption tax and not really relevant.
  - vacri 14y ago
    Sales tax is not a 'marginal' tax, and is certainly not unique to BC.
    - refurb 14y ago
      No, it's not a marginal tax, I was just referring to the fact that total tax burden has to include more than just income tax.

jmtulloss 14y ago

According to this, it's pretty comparable to the US if you live in California. Higher than the US if you live in Washington under their current tax laws. http://2vancouver.com/en/articles/vancouver-bc-taxes-on-income http://2vancouver.com/en/articles/vancouver-bc-taxes-on-inco...

enraged_camel 14y ago

High taxes aren't an issue, since healthcare is free and there is a very strong social safety net.

redthrowaway 14y ago
Also, taxes aren't high.
- refurb 14y ago
  It's all relative, no? Long ago, when I moved to the US from Canada, I figure out what I'd owe in tax in Canada vs. what I was paying in the US. Keep in mind that I owed a home (mortgage interest deduction) and maxed out my 401k (which isn't a % of income like Canada). I was only making $50K/yr, but I was taking home an extra $5K by living in the US and not Canada. 10% more income is pretty good, no?
  - redthrowaway 14y ago
    Depends how long ago you were here, but we've been seeing tax rates fall pretty consistently for a decade.
    - refurb 14y ago
      Add it all depends on what state/provinces you're comparing. I would fathom to guess that the lowest in Canada vs. the highest in the US isn't all that different, especially if you don't take advantage of country specific deductions.
      - redthrowaway 14y ago
        Well, for example, Albertans pay less tax (federal and provincial combined) than Californians, but more than Washingtonians (who pay no tax, but also have to pay for their own healthcare). Keep in mind, raw salaries tend to be higher in Canada, as is cost of living. It'd be pretty complicated to actually sit down and puzzle out real take-home wages as compared to PPP, but I doubt there'd be a massive difference.
deleted 14y ago
[deleted]

run4yourlives 14y ago

I live in Vancouver. Have you ever actually lived in Canada? >Vancouver, BC has barely any tech industry http://en.wikipedia.org/wiki/Economy_of_Vancouver http://en.wikipedia.org/wiki/Economy_of_Vancouver Let's just ignore the fact that MS has a development centre in Vancouver, specifically because its easier to hire game developers here. Halo is being written here. > British Columbia has one of the highest tax rate in Canada. You may want to tell that to BC: http://www.bcjobsplan.ca/?facts=b-c-lowest-personal-taxes http://www.bcjobsplan.ca/?facts=b-c-lowest-personal-taxes >One of my Canadian friends told me that the 50% marginal tax rate started around $65k, although I haven't double-checked this for accuracy. Your friend is either an idiot, or hasn't lived here in a long, long time. http://www.knv.com/cms-assets/documents/40364-256654.bcpersonaltaxrate.pdf http://www.knv.com/cms-assets/documents/40364-256654.bcperso... >You can't compete between Washington State, with no state income tax, and Vancouver, BC How's your health care? How much does that cost your employer? There are many great things about WA. I love it. However if the state is going to retroactively go after companies, BC starts to become very, very attractive. We are not that different, tax wise. We obviously need to stay competitive.

doktrin 14y ago
> How's your health care? How much does that cost your employer? This point is significant in and of itself. It's no coincidence that health insurance is a central point in just about every major recent union dispute. Health insurance is wildly expensive, and the cost to private corporations is not to be underestimated. Anyone who's ever had to provide health insurance to employees is acutely familiar with these costs.
kjackson2012 14y ago
My friend worked for EA Sports, so I trusted the information he provided, but I guess he was wrong. The marginal tax rates are 43% at 135k. Yes, Vancouver has some tech companies, but I wouldn't call it anything like a tech hub like Ottawa or Toronto. Also, UBC and SFU do not have a strong tech program. I'm sure it's average compared to most cities, but you won't find the same amounts of tech people in Vancouver like you will in Seattle or Silicon Valley. In fact, I'd bet that most above average developers in Vancouver would move to a more tech-oriented city. He also mentioned that the cost of housing in Vancouver is twice the amount of Seattle. Not sure how accurate that is either.

Maascamp 14y ago

The corporate tax rate is actually lower than it is in the US though.

Benferhat 14y ago
How much does Microsoft actually pay in corporate taxes to the US? [0] https://encrypted.google.com/search?q=microsoft+tax+avoidance https://encrypted.google.com/search?q=microsoft+tax+avoidanc...

c1u 14y ago

"50% marginal tax rate started around $65k" I think your friend has very poor math skills. http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2012-Personal-Tax http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2012-Pe... $65K gross income in BC nets nearly $52K; a ~20% average tax rate. This is before any eligible deductions. Even if your friend was making $1,000,000 gross salary, they'd still pay less than 42% tax on average, and that's ignoring several legal tax shelters available to all Canadians.

refurb 14y ago
Note, he said "marginal" not "overall" tax rate. Don't forget that BC has 12% sales tax and monthly premiums for health insurance. Income tax is only one of the many taxes.
- run4yourlives 14y ago
  BC has (or rather will return to) a variable sales tax that floats around 7% normally. There is also a 5% GST everywhere in Canada. (Like a VAT) Correct on MSP (Medical Services Plan). Personally, I'd love to abolish this and roll it into general revenues. It's a nightmare.
- c1u 14y ago
  ok, the highest marginal tax rate for a $65K gross salary is ~30%. Everyone gets the first ~10K tax-free, then it's ~20% (in BC) off the next ~$40K, then ~30% off the next ~$40K. Only the last ~$15K gets taxed at 30%, and you can easily reduce that to zero with available legal tax-shelters/deductions/credits. BC health premiums are $65/month for a single person. Sales tax is a consumption tax and not really relevant.
- vacri 14y ago
  Sales tax is not a 'marginal' tax, and is certainly not unique to BC.
  - refurb 14y ago
    No, it's not a marginal tax, I was just referring to the fact that total tax burden has to include more than just income tax.