UKCamaroSS

Hi,

I have seen the UK Tax Freedom Day for 2008 was yesterday (June 02nd).

This means for 155 days of the year, every penny earned by the average UK resident was taken to support government expenditures. Overall, the government takes more than 40% of national income.

Tax Freedom Day is calculated by taking the UK's net national income and calculating how much of that is taken away in taxes. These taxes include not just income tax, but VAT, inheritance tax, stamp duty, car and fuel taxes, excise taxes on alcohol and cigarettes, taxes on companies and employment, and many more.

According to the Fraser Institute, Canada's Tax Freedom Day for 2007 was on June 20th... not sure of the date of 2008 - Some dispute the calculations used by Fraser Institute though.

I am amazed at these figures, I thought the taxes were cheaper in Canada.... so, are people in Canada complaining about their high tax rates? Do they feel the tax burdon is too great?

Just for comparison, USA Tax Freedom was on April 23rd 2008, Australia was April 24 2008...

bootlecat

Depends on how much you earn, no hard and fast rule for someone on a low salary tax is similar, someone in the middle income bracket may have it slightly better in Canada, over $100K and the tax in Canada is far higher than the UK

dbd33

No, they're hoppy to sopport the many wonderful initiatives of the various levels of government.

mandymoochops

hohohohoho

dbd33

Well, really, what does UKCamaroSS think, that no one ever complains? Taxes are higher in Canada than the US or Australia because, in Canada, they include, among other things, healthcare, education and maternity benefits. Generally people in Canada support that trade off, otherwise we'd have different governments, but do they love paying taxes, do they 'eck as like.

mandymoochops

No one likes to pay taxes but they are here and we pay them, I think the blow is softened somewhat with a bit of refund once a year here though.

They taketh away and they giveth some back

JonboyE

A friend of mine works for a very well known computer company in San Jose. He has a very comprehensive medical insurance as part of his remuneration. One day his 3 year old daughter was not well so he took her to the local emergency room. The ER doctor said that he couldn't see anything particularly wrong with her but, with my friends permission, he would like to do some more tests.

What parent would say no?

Anyway, the tests were done and all clear, and my friend was presented with a bill for $5,000. This was after his medical plan had kicked in its 80%.

Me? I'm happy to pay my taxes.

JonboyE

Whilst it is true that the top marginal taxes rates on income over $123k in some provinces is as high as 48.25%, very few people pay this.

These rates are generally in the provinces with lower incomes (and lower real estate prices) where $123k is a very significant income and some simple tax planning, like RRSP contributions will keep income in much lower tax brackets.

UKCamaroSS

Well, what a surprise comment eh!

I never for a minute suggested anyone "Loves paying taxes"....

It seems you missed the point about the UK taxes Vs Canada - as this is a forum for UK expats, that was my main point...


In the UK every moans like hell about the taxes. Everyday you hear story's of too much petrol tax, alcohol duty, strikes being called, blockades talked about.... so, what I was getting at was, the level of taxation in Canada appears to be higher than the UK, but I do not hear of mass protests in Canada re their tax.

I also wondered how many UK expats knew prior to moving that taxation was going to be higher...

Your statement "Generally people in Canada support that trade off" answered my question because, you see, in the UK it seems people do not support the trade off.

dbd33

I think they do, otherwise they'd vote for "low tax, low benefit" politicians. I think the majority of people in the UK do value the NHS.

jimf

This link gives a comparison between UK and Canadian income tax for 2006/07 and 2007/08. Suggests there isn't a huge difference for middling incomes.

http://canadianfinancialdiy.blogspot...dated-for.html

The other deduction in the UK is national insurance. Between approx £5k to £35k 11% of income over £5k is deducted and above £35k 1% of income of £35k deducted. This is effectively a tax. Is there an equivalent in Canada to add on to Canadian tax %ages?

UKCamaroSS

Perhaps your right.

UKCamaroSS

Thanks for the link - it seems to have a much better comparison after having a quick look.

JonboyE

There is the Canadian Pension Plan and Employment insurance. These are based on earnings but the maximum contributions are $2,760.33 in 2008 on $45k income.

When you factor in NI the rates between the UK and Canada are much more comparable. Don't forget that each Province has different tax rates. In Alberta and BC rates are lower than Ontario. In Quebec and the Maritimes they are higher.

pretz

interesting thread, I googled this from the fraser institute for 2007, didn't realise it varied so much. There must be a typo on this, how can quebec be las low as alberta?

Tax Freedom Day - Province by Province
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Province AB NB PEI BC MB ON NS SK QC NL Canada
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2007
Tax June June June June June June June June June July June
Freedom 1 14 14 16 16 19 19 22 26 1 20
Day
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