KFRCanuk Posted June 25, 2010 Share Posted June 25, 2010 I read today that in the UK, the VAT will rise to 20% from 17.5%. Which let me to the Wikipedia article. It seems that most euro countries have a rate arround 20% http://en.wikipedia.org/wiki/Value_added_tax#Tax_rates Wow people complain in Canada about the HST/GST/PST. I ain't complaining any more ::) Link to comment Share on other sites More sharing options...
returnonmycapital Posted June 25, 2010 Share Posted June 25, 2010 Very few Canadians have a right to complain about our tax system, especially if you are a small business owner. I have done my taxes by the book since moving here 11 years ago and have paid about half the rate I would have paid had I stayed in the US/UK, where ease of doing business is on par with Canada. That includes income and property taxes. Few appreciate how good we have it. Link to comment Share on other sites More sharing options...
roundball100 Posted June 26, 2010 Share Posted June 26, 2010 How social services are handled is certainly different (healthcare, school taxes, etc.), but what I hear fellow Canadians complain about most is income tax (compared to low-tax U.S. states), and lack of the U.S. tax incentives related to housing (interest on mortgages tax deductible). Link to comment Share on other sites More sharing options...
nodnub Posted June 26, 2010 Share Posted June 26, 2010 How social services are handled is certainly different (healthcare, school taxes, etc.), but what I hear fellow Canadians complain about most is income tax (compared to low-tax U.S. states), and lack of the U.S. tax incentives related to housing (interest on mortgages tax deductible). One of my Canadian friends moved from British Columbia to Oregon for a promotion and a raise. His new salary was higher even when you ignored exchange rates. However, he told me that even with a higher salary, his take home pay was lower in Oregon than it was while he was in Canada. (Oregon does have the benefit of no state sales tax though) Link to comment Share on other sites More sharing options...
Rabbitisrich Posted June 26, 2010 Share Posted June 26, 2010 Really? My cousin and her family moved to Montreal a couple of years ago, and they make it seem as if the taxation is tyrannical. Link to comment Share on other sites More sharing options...
beerbaron Posted June 26, 2010 Share Posted June 26, 2010 I live in Montreal a 50k single person salary without deduction is about 38% tax rate. A lot lower is you take advantage of all deductions tough. BeerBaron Link to comment Share on other sites More sharing options...
nodnub Posted June 26, 2010 Share Posted June 26, 2010 I live in Montreal a 50k single person salary without deduction is about 38% tax rate. A lot lower is you take advantage of all deductions tough. BeerBaron This is the marginal tax rate at 50K. A much more representative figure would be the total % tax paid. If you go to Taxtips.ca you can see that someone earning 50K in Quebec, pays a total of $11,759 federal and provincial tax. When you add in the mandatory govt pension and Employment insurance taxes then the total is $14,703. This makes total tax paid only 29.4% of income (ignoring impact of sales tax/VAT) In BC, that same 50K salary would only be taxed a total of $11,091 for a total tax, pension, and EI tax of only 22.2% of income. http://taxtips.ca/calculators/taxcalculator.htm Can anyone add detail on how that compares to various states in the US? Link to comment Share on other sites More sharing options...
ERICOPOLY Posted June 26, 2010 Share Posted June 26, 2010 I live in Montreal a 50k single person salary without deduction is about 38% tax rate. A lot lower is you take advantage of all deductions tough. BeerBaron This is the marginal tax rate at 50K. A much more representative figure would be the total % tax paid. If you go to Taxtips.ca you can see that someone earning 50K in Quebec, pays a total of $11,759 federal and provincial tax. When you add in the mandatory govt pension and Employment insurance taxes then the total is $14,703. This makes total tax paid only 29.4% of income (ignoring impact of sales tax/VAT) In BC, that same 50K salary would only be taxed a total of $11,091 for a total tax, pension, and EI tax of only 22.2% of income. http://taxtips.ca/calculators/taxcalculator.htm Can anyone add detail on how that compares to various states in the US? A single person earning $50k in the US pays $8,688 in federal tax -- 17.376%. There is an additional 15.3% tax that covers social security and medicare programs -- 1/2 of that tax is paid by the employer. One might be tempted to say that the combined tax is 32.676%, but the employer takes a deduction for 1/2 of that social security and medicare tax... So total tax paid probably comes to roughly 30% or so. Here in Washington state, there is no state income tax (we have property and sales taxes). Most states have income taxes. Link to comment Share on other sites More sharing options...
shalab Posted June 28, 2010 Share Posted June 28, 2010 Eric, per the withholding calculator in http://www.irs.gov, I get a tax rate of 11.9% federal tax for 50K income without any deductions like IRA, 401k etc. The FICA taxes will apply. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted June 28, 2010 Share Posted June 28, 2010 I think that must be right Shalab. Link to comment Share on other sites More sharing options...
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