Income Tax in Canada
May 22nd 2003, 6:02 am
#1
Forum Regular
Thread Starter
Joined: Dec 2002
Posts: 57
Income Tax in Canada
I have heard that in Canada, one payes around 45% of his income in taxes. In the US, one could buy real estate and deduct the interest. One could also deduct up to $12,000 in 401k. What kind of deductions one can make in Canada to reduce the amount of income tax one has to pay?
Thanks.
Thanks.
May 22nd 2003, 1:46 pm
#2
Guest
Posts: n/a
Re: Income Tax in Canada
did you think that every country gives you the same tax advantages?
on top of 45% income tax, that there is 15% sales tax.
welcome to canada!
"stats2000" wrote in message
news:[email protected]...
> I have heard that in Canada, one payes around 45% of his income in
> taxes. In the US, one could buy real estate and deduct the interest. One
> could also deduct up to $12,000 in 401k. What kind of deductions one can
> make in Canada to reduce the amount of income tax one has to pay?
> Thanks.
> --
> Posted via http://britishexpats.com
on top of 45% income tax, that there is 15% sales tax.
welcome to canada!
"stats2000" wrote in message
news:[email protected]...
> I have heard that in Canada, one payes around 45% of his income in
> taxes. In the US, one could buy real estate and deduct the interest. One
> could also deduct up to $12,000 in 401k. What kind of deductions one can
> make in Canada to reduce the amount of income tax one has to pay?
> Thanks.
> --
> Posted via http://britishexpats.com
May 22nd 2003, 2:04 pm
#3
Guest
Posts: n/a
Re: Income Tax in Canada
Atul Patel wrote:
>
> did you think that every country gives you the same tax advantages?
> on top of 45% income tax, that there is 15% sales tax.
> welcome to canada!
> "stats2000" wrote in message
> news:[email protected]...
> >
> > I have heard that in Canada, one payes around 45% of his income in
> > taxes. In the US, one could buy real estate and deduct the interest. One
> > could also deduct up to $12,000 in 401k. What kind of deductions one can
> > make in Canada to reduce the amount of income tax one has to pay?
> >
> > Thanks.
That number would *include* sales taxes, since the marginal tax rate for
most provinces is between 45 and 51%
You and Aikido/NorthernLigths make a good pair for cluelessness.
>
> did you think that every country gives you the same tax advantages?
> on top of 45% income tax, that there is 15% sales tax.
> welcome to canada!
> "stats2000" wrote in message
> news:[email protected]...
> >
> > I have heard that in Canada, one payes around 45% of his income in
> > taxes. In the US, one could buy real estate and deduct the interest. One
> > could also deduct up to $12,000 in 401k. What kind of deductions one can
> > make in Canada to reduce the amount of income tax one has to pay?
> >
> > Thanks.
That number would *include* sales taxes, since the marginal tax rate for
most provinces is between 45 and 51%
You and Aikido/NorthernLigths make a good pair for cluelessness.
May 22nd 2003, 5:30 pm
#4
Guest
Posts: n/a
Re: Income Tax in Canada
On Thu, 22 May 2003 09:46:46 -0400, "Atul Patel"
wrote:
>did you think that every country gives you the same tax advantages?
>on top of 45% income tax, that there is 15% sales tax.
>welcome to canada!
You forgot the "Welcome Tax" when one buys a place to live. tax for
Air Conditioning in new cars, higher property tax, plus school board
tax, school fees for lunch hour, transportation fees to school....the
list keeps going and going like the little bunny.
The only ones that really live good are either very rich or on
Welfare, hell the kids on welfare get into LaRound for free or that is
what I have heard, don't know, don't quantify for it.
>"stats2000" wrote in message
>news:[email protected]...
>> I have heard that in Canada, one payes around 45% of his income in
>> taxes. In the US, one could buy real estate and deduct the interest. One
>> could also deduct up to $12,000 in 401k. What kind of deductions one can
>> make in Canada to reduce the amount of income tax one has to pay?
>> Thanks.
>> --
>> Posted via http://britishexpats.com
wrote:
>did you think that every country gives you the same tax advantages?
>on top of 45% income tax, that there is 15% sales tax.
>welcome to canada!
You forgot the "Welcome Tax" when one buys a place to live. tax for
Air Conditioning in new cars, higher property tax, plus school board
tax, school fees for lunch hour, transportation fees to school....the
list keeps going and going like the little bunny.
The only ones that really live good are either very rich or on
Welfare, hell the kids on welfare get into LaRound for free or that is
what I have heard, don't know, don't quantify for it.
>"stats2000" wrote in message
>news:[email protected]...
>> I have heard that in Canada, one payes around 45% of his income in
>> taxes. In the US, one could buy real estate and deduct the interest. One
>> could also deduct up to $12,000 in 401k. What kind of deductions one can
>> make in Canada to reduce the amount of income tax one has to pay?
>> Thanks.
>> --
>> Posted via http://britishexpats.com
May 22nd 2003, 6:39 pm
#5
Guest
Posts: n/a
Re: Income Tax in Canada
"stats2000" wrote:
> > > I have heard that in Canada, one pays around 45% of
> > > his income in taxes.
Atul Patel replied:
> > on top of 45% income tax, that there is 15% sales tax.
> > welcome to canada!
[email protected] replied:
> [long list of miscellaneous local taxes deleted . . .]
If stats2000's 45% figure was supposed to represent only income tax,
it's way off. He may have been confusing the "marginal rate" for
the top tax bracket (i.e., how much of the last dollar you earned
gets eaten up by income tax) with the total percentage of one's
entire income that goes to income tax.
In actual fact, most Canadians pay far, far less than 45% of their
entire gross income in income tax.
On the other hand, if stats2000 was talking about the total amount
of all taxes of all kinds (the "tax freedom day" idea), then 45%
is actually a bit low. For 2002, the average Canadian tax bill
(counting all taxes from all levels of government) was about 49%
("tax freedom day" = June 28). But this includes sales tax, prop-
erty tax, etc., etc.
If you're going to compare Canadian taxes with, say, US taxes, be
sure to take things like the following into account in order to get
a complete picture:
==> Payroll taxes -- such as US FICA (Social Security), or Canadian
CPP (Canada Pension Plan) and EI (Employment Insurance -- once
called UI or Unemployment Insurance). CPP+EI is significantly
less than FICA, by the way.
==> State income tax -- easy to overlook because most Canadians pay
both federal and provincial tax on a single combined return.
==> Health insurance -- built into the tax structure in Canada, but
not in the US; you should probably add health insurance premiums
to your US tax bill in order to get a fair comparison.
==> Sales tax -- Canadian typically pay about 15% (varies from one
province/territory to another), which is a lot more than any US
state.
Canada doesn't have a US-style mortgage interest deduction. On the
other hand, the tax credit in Canada for charitable donations is
more generous than in the US. First, most of the credit is computed
at the top marginal tax rate, even for low- and middle-income tax-
payers. Also, since Canada doesn't have a "standard deduction",
even a modest charitable donation will help most taxpayers.
Canada has an income deduction for retirement savings plans called
RRSP's. These are similar to US IRA's, but the contribution limit
is much higher, and there are far fewer restrictions on withdrawing
the money (e.g., no penalty for "premature" withdrawals).
I understand "tax freedom day" in the US is around April 19 (30%
total taxes at all levels of government). I assume, though, that
this calculation does not treat health insurance premiums as if
they were taxes (see the above discussion of Canadian vs. US tax).
Rich Wales [email protected] http://www.richw.org
*NOTE: I've lived in both Canada and the US and have dual citizenship.
*DISCLAIMER: I am not a lawyer, professional immigration consultant,
or consular officer. My comments are for discussion purposes only and
are not intended to be relied upon as legal or professional advice.
> > > I have heard that in Canada, one pays around 45% of
> > > his income in taxes.
Atul Patel replied:
> > on top of 45% income tax, that there is 15% sales tax.
> > welcome to canada!
[email protected] replied:
> [long list of miscellaneous local taxes deleted . . .]
If stats2000's 45% figure was supposed to represent only income tax,
it's way off. He may have been confusing the "marginal rate" for
the top tax bracket (i.e., how much of the last dollar you earned
gets eaten up by income tax) with the total percentage of one's
entire income that goes to income tax.
In actual fact, most Canadians pay far, far less than 45% of their
entire gross income in income tax.
On the other hand, if stats2000 was talking about the total amount
of all taxes of all kinds (the "tax freedom day" idea), then 45%
is actually a bit low. For 2002, the average Canadian tax bill
(counting all taxes from all levels of government) was about 49%
("tax freedom day" = June 28). But this includes sales tax, prop-
erty tax, etc., etc.
If you're going to compare Canadian taxes with, say, US taxes, be
sure to take things like the following into account in order to get
a complete picture:
==> Payroll taxes -- such as US FICA (Social Security), or Canadian
CPP (Canada Pension Plan) and EI (Employment Insurance -- once
called UI or Unemployment Insurance). CPP+EI is significantly
less than FICA, by the way.
==> State income tax -- easy to overlook because most Canadians pay
both federal and provincial tax on a single combined return.
==> Health insurance -- built into the tax structure in Canada, but
not in the US; you should probably add health insurance premiums
to your US tax bill in order to get a fair comparison.
==> Sales tax -- Canadian typically pay about 15% (varies from one
province/territory to another), which is a lot more than any US
state.
Canada doesn't have a US-style mortgage interest deduction. On the
other hand, the tax credit in Canada for charitable donations is
more generous than in the US. First, most of the credit is computed
at the top marginal tax rate, even for low- and middle-income tax-
payers. Also, since Canada doesn't have a "standard deduction",
even a modest charitable donation will help most taxpayers.
Canada has an income deduction for retirement savings plans called
RRSP's. These are similar to US IRA's, but the contribution limit
is much higher, and there are far fewer restrictions on withdrawing
the money (e.g., no penalty for "premature" withdrawals).
I understand "tax freedom day" in the US is around April 19 (30%
total taxes at all levels of government). I assume, though, that
this calculation does not treat health insurance premiums as if
they were taxes (see the above discussion of Canadian vs. US tax).
Rich Wales [email protected] http://www.richw.org
*NOTE: I've lived in both Canada and the US and have dual citizenship.
*DISCLAIMER: I am not a lawyer, professional immigration consultant,
or consular officer. My comments are for discussion purposes only and
are not intended to be relied upon as legal or professional advice.
May 22nd 2003, 7:15 pm
#6
Guest
Posts: n/a
Re: Income Tax in Canada
Tax calculator is here:
http://www.ey.com/global/Content.nsf...2_Personal_Tax
As you can see there is no way to pay 45% in total (federal and Provincial)
income tax unless one earns above $500,000 in Quebec and Newfoundland.
Average earners ($75,000 or so) pay less than or slightly above 30% in total
income tax.
--
../..
Andrew Miller
Immigration Consultant
Vancouver, British Columbia
email: [email protected]
(delete REMOVE from the above address before sending email)
________________________________
"Rich Wales" wrote in message
news:[email protected]...
> "stats2000" wrote:
> > > > I have heard that in Canada, one pays around 45% of
> > > > his income in taxes.
> Atul Patel replied:
> > > on top of 45% income tax, that there is 15% sales tax.
> > > welcome to canada!
> [email protected] replied:
> > [long list of miscellaneous local taxes deleted . . .]
> If stats2000's 45% figure was supposed to represent only income tax,
> it's way off. He may have been confusing the "marginal rate" for
> the top tax bracket (i.e., how much of the last dollar you earned
> gets eaten up by income tax) with the total percentage of one's
> entire income that goes to income tax.
> In actual fact, most Canadians pay far, far less than 45% of their
> entire gross income in income tax.
> On the other hand, if stats2000 was talking about the total amount
> of all taxes of all kinds (the "tax freedom day" idea), then 45%
> is actually a bit low. For 2002, the average Canadian tax bill
> (counting all taxes from all levels of government) was about 49%
> ("tax freedom day" = June 28). But this includes sales tax, prop-
> erty tax, etc., etc.
> If you're going to compare Canadian taxes with, say, US taxes, be
> sure to take things like the following into account in order to get
> a complete picture:
> ==> Payroll taxes -- such as US FICA (Social Security), or Canadian
> CPP (Canada Pension Plan) and EI (Employment Insurance -- once
> called UI or Unemployment Insurance). CPP+EI is significantly
> less than FICA, by the way.
> ==> State income tax -- easy to overlook because most Canadians pay
> both federal and provincial tax on a single combined return.
> ==> Health insurance -- built into the tax structure in Canada, but
> not in the US; you should probably add health insurance premiums
> to your US tax bill in order to get a fair comparison.
> ==> Sales tax -- Canadian typically pay about 15% (varies from one
> province/territory to another), which is a lot more than any US
> state.
> Canada doesn't have a US-style mortgage interest deduction. On the
> other hand, the tax credit in Canada for charitable donations is
> more generous than in the US. First, most of the credit is computed
> at the top marginal tax rate, even for low- and middle-income tax-
> payers. Also, since Canada doesn't have a "standard deduction",
> even a modest charitable donation will help most taxpayers.
> Canada has an income deduction for retirement savings plans called
> RRSP's. These are similar to US IRA's, but the contribution limit
> is much higher, and there are far fewer restrictions on withdrawing
> the money (e.g., no penalty for "premature" withdrawals).
> I understand "tax freedom day" in the US is around April 19 (30%
> total taxes at all levels of government). I assume, though, that
> this calculation does not treat health insurance premiums as if
> they were taxes (see the above discussion of Canadian vs. US tax).
> Rich Wales [email protected] http://www.richw.org
> *NOTE: I've lived in both Canada and the US and have dual citizenship.
> *DISCLAIMER: I am not a lawyer, professional immigration consultant,
> or consular officer. My comments are for discussion purposes only and
> are not intended to be relied upon as legal or professional advice.
http://www.ey.com/global/Content.nsf...2_Personal_Tax
As you can see there is no way to pay 45% in total (federal and Provincial)
income tax unless one earns above $500,000 in Quebec and Newfoundland.
Average earners ($75,000 or so) pay less than or slightly above 30% in total
income tax.
--
../..
Andrew Miller
Immigration Consultant
Vancouver, British Columbia
email: [email protected]
(delete REMOVE from the above address before sending email)
________________________________
"Rich Wales" wrote in message
news:[email protected]...
> "stats2000" wrote:
> > > > I have heard that in Canada, one pays around 45% of
> > > > his income in taxes.
> Atul Patel replied:
> > > on top of 45% income tax, that there is 15% sales tax.
> > > welcome to canada!
> [email protected] replied:
> > [long list of miscellaneous local taxes deleted . . .]
> If stats2000's 45% figure was supposed to represent only income tax,
> it's way off. He may have been confusing the "marginal rate" for
> the top tax bracket (i.e., how much of the last dollar you earned
> gets eaten up by income tax) with the total percentage of one's
> entire income that goes to income tax.
> In actual fact, most Canadians pay far, far less than 45% of their
> entire gross income in income tax.
> On the other hand, if stats2000 was talking about the total amount
> of all taxes of all kinds (the "tax freedom day" idea), then 45%
> is actually a bit low. For 2002, the average Canadian tax bill
> (counting all taxes from all levels of government) was about 49%
> ("tax freedom day" = June 28). But this includes sales tax, prop-
> erty tax, etc., etc.
> If you're going to compare Canadian taxes with, say, US taxes, be
> sure to take things like the following into account in order to get
> a complete picture:
> ==> Payroll taxes -- such as US FICA (Social Security), or Canadian
> CPP (Canada Pension Plan) and EI (Employment Insurance -- once
> called UI or Unemployment Insurance). CPP+EI is significantly
> less than FICA, by the way.
> ==> State income tax -- easy to overlook because most Canadians pay
> both federal and provincial tax on a single combined return.
> ==> Health insurance -- built into the tax structure in Canada, but
> not in the US; you should probably add health insurance premiums
> to your US tax bill in order to get a fair comparison.
> ==> Sales tax -- Canadian typically pay about 15% (varies from one
> province/territory to another), which is a lot more than any US
> state.
> Canada doesn't have a US-style mortgage interest deduction. On the
> other hand, the tax credit in Canada for charitable donations is
> more generous than in the US. First, most of the credit is computed
> at the top marginal tax rate, even for low- and middle-income tax-
> payers. Also, since Canada doesn't have a "standard deduction",
> even a modest charitable donation will help most taxpayers.
> Canada has an income deduction for retirement savings plans called
> RRSP's. These are similar to US IRA's, but the contribution limit
> is much higher, and there are far fewer restrictions on withdrawing
> the money (e.g., no penalty for "premature" withdrawals).
> I understand "tax freedom day" in the US is around April 19 (30%
> total taxes at all levels of government). I assume, though, that
> this calculation does not treat health insurance premiums as if
> they were taxes (see the above discussion of Canadian vs. US tax).
> Rich Wales [email protected] http://www.richw.org
> *NOTE: I've lived in both Canada and the US and have dual citizenship.
> *DISCLAIMER: I am not a lawyer, professional immigration consultant,
> or consular officer. My comments are for discussion purposes only and
> are not intended to be relied upon as legal or professional advice.
May 22nd 2003, 7:32 pm
#7
Forum Regular
Joined: Feb 2003
Posts: 45
One thing that you forgot to mention is that in Canada, the top top marginal income bracket starts at $100,000, which is significantly lower than the U.S. As a result, a lot more Canadians have to pay elevated tax levels.
May 22nd 2003, 11:30 pm
#8
Guest
Posts: n/a
Re: Income Tax in Canada
Taxes may sound higher than in the United States... but the health care
factor is one thing that's often left out of the math in making the
comparison...
Mortgage interest is not deductible from taxes in Canada but we have a
tax-deferral vehicle called a Registered Retirement Savings Plan -
contributions to an RRSP are deductible up to a limit (currently the lesser
of $13,500 or 18% of earned income per year) and the tax deferred until
withdrawal.
There are a number of deductible items such as tuition at post-secondary or
other approved courses, medical expenses which exceed 3% of gross income in
any given one-year period, etc etc etc.
"stats2000" wrote in message
news:[email protected]...
> I have heard that in Canada, one payes around 45% of his income in
> taxes. In the US, one could buy real estate and deduct the interest. One
> could also deduct up to $12,000 in 401k. What kind of deductions one can
> make in Canada to reduce the amount of income tax one has to pay?
> Thanks.
> --
> Posted via http://britishexpats.com
factor is one thing that's often left out of the math in making the
comparison...
Mortgage interest is not deductible from taxes in Canada but we have a
tax-deferral vehicle called a Registered Retirement Savings Plan -
contributions to an RRSP are deductible up to a limit (currently the lesser
of $13,500 or 18% of earned income per year) and the tax deferred until
withdrawal.
There are a number of deductible items such as tuition at post-secondary or
other approved courses, medical expenses which exceed 3% of gross income in
any given one-year period, etc etc etc.
"stats2000" wrote in message
news:[email protected]...
> I have heard that in Canada, one payes around 45% of his income in
> taxes. In the US, one could buy real estate and deduct the interest. One
> could also deduct up to $12,000 in 401k. What kind of deductions one can
> make in Canada to reduce the amount of income tax one has to pay?
> Thanks.
> --
> Posted via http://britishexpats.com
May 25th 2003, 3:15 am
#9
Guest
Posts: n/a
Re: Income Tax in Canada
[email protected] (Rich Wales) wrote:
>I understand "tax freedom day" in the US is around April 19 (30%
>total taxes at all levels of government). I assume, though, that
unless you're rich, then tax freedom day is everyday, especially with
the latest bush tax cut plan passed! i heard next time, he's gonna
push giving them money each year.
( modify address for return email )
www.numbersusa.com
www.americanpatrol.com
>I understand "tax freedom day" in the US is around April 19 (30%
>total taxes at all levels of government). I assume, though, that
unless you're rich, then tax freedom day is everyday, especially with
the latest bush tax cut plan passed! i heard next time, he's gonna
push giving them money each year.
( modify address for return email )
www.numbersusa.com
www.americanpatrol.com
Jun 3rd 2003, 7:55 am
#10
Guest
Posts: n/a
Re: Income Tax in Canada
with BUSH tax cuts - incomes $$ 40,000 USD or below would pay
little or no tax at all
NURSES, PHARMS, DOCS leaving for USA by the bus loads
"Rich Wales" wrote in message
news:[email protected]...
> "stats2000" wrote:
> > > > I have heard that in Canada, one pays around 45% of
> > > > his income in taxes.
> Atul Patel replied:
> > > on top of 45% income tax, that there is 15% sales tax.
> > > welcome to canada!
> [email protected] replied:
> > [long list of miscellaneous local taxes deleted . . .]
> If stats2000's 45% figure was supposed to represent only income tax,
> it's way off. He may have been confusing the "marginal rate" for
> the top tax bracket (i.e., how much of the last dollar you earned
> gets eaten up by income tax) with the total percentage of one's
> entire income that goes to income tax.
> In actual fact, most Canadians pay far, far less than 45% of their
> entire gross income in income tax.
> On the other hand, if stats2000 was talking about the total amount
> of all taxes of all kinds (the "tax freedom day" idea), then 45%
> is actually a bit low. For 2002, the average Canadian tax bill
> (counting all taxes from all levels of government) was about 49%
> ("tax freedom day" = June 28). But this includes sales tax, prop-
> erty tax, etc., etc.
> If you're going to compare Canadian taxes with, say, US taxes, be
> sure to take things like the following into account in order to get
> a complete picture:
> ==> Payroll taxes -- such as US FICA (Social Security), or Canadian
> CPP (Canada Pension Plan) and EI (Employment Insurance -- once
> called UI or Unemployment Insurance). CPP+EI is significantly
> less than FICA, by the way.
> ==> State income tax -- easy to overlook because most Canadians pay
> both federal and provincial tax on a single combined return.
> ==> Health insurance -- built into the tax structure in Canada, but
> not in the US; you should probably add health insurance premiums
> to your US tax bill in order to get a fair comparison.
> ==> Sales tax -- Canadian typically pay about 15% (varies from one
> province/territory to another), which is a lot more than any US
> state.
> Canada doesn't have a US-style mortgage interest deduction. On the
> other hand, the tax credit in Canada for charitable donations is
> more generous than in the US. First, most of the credit is computed
> at the top marginal tax rate, even for low- and middle-income tax-
> payers. Also, since Canada doesn't have a "standard deduction",
> even a modest charitable donation will help most taxpayers.
> Canada has an income deduction for retirement savings plans called
> RRSP's. These are similar to US IRA's, but the contribution limit
> is much higher, and there are far fewer restrictions on withdrawing
> the money (e.g., no penalty for "premature" withdrawals).
> I understand "tax freedom day" in the US is around April 19 (30%
> total taxes at all levels of government). I assume, though, that
> this calculation does not treat health insurance premiums as if
> they were taxes (see the above discussion of Canadian vs. US tax).
> Rich Wales [email protected] http://www.richw.org
> *NOTE: I've lived in both Canada and the US and have dual citizenship.
> *DISCLAIMER: I am not a lawyer, professional immigration consultant,
> or consular officer. My comments are for discussion purposes only and
> are not intended to be relied upon as legal or professional advice.
little or no tax at all
NURSES, PHARMS, DOCS leaving for USA by the bus loads
"Rich Wales" wrote in message
news:[email protected]...
> "stats2000" wrote:
> > > > I have heard that in Canada, one pays around 45% of
> > > > his income in taxes.
> Atul Patel replied:
> > > on top of 45% income tax, that there is 15% sales tax.
> > > welcome to canada!
> [email protected] replied:
> > [long list of miscellaneous local taxes deleted . . .]
> If stats2000's 45% figure was supposed to represent only income tax,
> it's way off. He may have been confusing the "marginal rate" for
> the top tax bracket (i.e., how much of the last dollar you earned
> gets eaten up by income tax) with the total percentage of one's
> entire income that goes to income tax.
> In actual fact, most Canadians pay far, far less than 45% of their
> entire gross income in income tax.
> On the other hand, if stats2000 was talking about the total amount
> of all taxes of all kinds (the "tax freedom day" idea), then 45%
> is actually a bit low. For 2002, the average Canadian tax bill
> (counting all taxes from all levels of government) was about 49%
> ("tax freedom day" = June 28). But this includes sales tax, prop-
> erty tax, etc., etc.
> If you're going to compare Canadian taxes with, say, US taxes, be
> sure to take things like the following into account in order to get
> a complete picture:
> ==> Payroll taxes -- such as US FICA (Social Security), or Canadian
> CPP (Canada Pension Plan) and EI (Employment Insurance -- once
> called UI or Unemployment Insurance). CPP+EI is significantly
> less than FICA, by the way.
> ==> State income tax -- easy to overlook because most Canadians pay
> both federal and provincial tax on a single combined return.
> ==> Health insurance -- built into the tax structure in Canada, but
> not in the US; you should probably add health insurance premiums
> to your US tax bill in order to get a fair comparison.
> ==> Sales tax -- Canadian typically pay about 15% (varies from one
> province/territory to another), which is a lot more than any US
> state.
> Canada doesn't have a US-style mortgage interest deduction. On the
> other hand, the tax credit in Canada for charitable donations is
> more generous than in the US. First, most of the credit is computed
> at the top marginal tax rate, even for low- and middle-income tax-
> payers. Also, since Canada doesn't have a "standard deduction",
> even a modest charitable donation will help most taxpayers.
> Canada has an income deduction for retirement savings plans called
> RRSP's. These are similar to US IRA's, but the contribution limit
> is much higher, and there are far fewer restrictions on withdrawing
> the money (e.g., no penalty for "premature" withdrawals).
> I understand "tax freedom day" in the US is around April 19 (30%
> total taxes at all levels of government). I assume, though, that
> this calculation does not treat health insurance premiums as if
> they were taxes (see the above discussion of Canadian vs. US tax).
> Rich Wales [email protected] http://www.richw.org
> *NOTE: I've lived in both Canada and the US and have dual citizenship.
> *DISCLAIMER: I am not a lawyer, professional immigration consultant,
> or consular officer. My comments are for discussion purposes only and
> are not intended to be relied upon as legal or professional advice.
Jun 3rd 2003, 4:27 pm
#11
Guest
Posts: n/a
Re: Income Tax in Canada
> with BUSH tax cuts - incomes $$ 40,000 USD or below would pay
> little or no tax at all
>
Can you site the actual specifics (tax rates)?
Also, keep in mind that the tax cuts do not effect
FICA or Medicare taxes. Nor do they change state
income tax rates.
Stephen
> little or no tax at all
>
Can you site the actual specifics (tax rates)?
Also, keep in mind that the tax cuts do not effect
FICA or Medicare taxes. Nor do they change state
income tax rates.
Stephen
Jun 3rd 2003, 7:03 pm
#12
Guest
Posts: n/a
Re: Income Tax in Canada
kurakot wrote:
>
>
> NURSES, PHARMS, DOCS leaving for USA by the bus loads
To do what ? Do you have any idea of what is costs in terms
of time, money and energy to validate your non-us medical
credentions here ?
>
>
> NURSES, PHARMS, DOCS leaving for USA by the bus loads
To do what ? Do you have any idea of what is costs in terms
of time, money and energy to validate your non-us medical
credentions here ?
Jun 4th 2003, 5:21 am
#13
Guest
Posts: n/a
Re: Income Tax in Canada
not a problem at all
"Chorbalan" wrote in message
news:[email protected]...
> kurakot wrote:
> >
> >
> > NURSES, PHARMS, DOCS leaving for USA by the bus loads
> To do what ? Do you have any idea of what is costs in terms
> of time, money and energy to validate your non-us medical
> credentions here ?
"Chorbalan" wrote in message
news:[email protected]...
> kurakot wrote:
> >
> >
> > NURSES, PHARMS, DOCS leaving for USA by the bus loads
> To do what ? Do you have any idea of what is costs in terms
> of time, money and energy to validate your non-us medical
> credentions here ?
Jun 4th 2003, 5:21 am
#14
Guest
Posts: n/a
Re: Income Tax in Canada
national post - 2 days ago
"Stephen Gallagher" wrote in message
news:[email protected]...
> > with BUSH tax cuts - incomes $$ 40,000 USD or below would pay
> > little or no tax at all
> >
> Can you site the actual specifics (tax rates)?
> Also, keep in mind that the tax cuts do not effect
> FICA or Medicare taxes. Nor do they change state
> income tax rates.
> Stephen
"Stephen Gallagher" wrote in message
news:[email protected]...
> > with BUSH tax cuts - incomes $$ 40,000 USD or below would pay
> > little or no tax at all
> >
> Can you site the actual specifics (tax rates)?
> Also, keep in mind that the tax cuts do not effect
> FICA or Medicare taxes. Nor do they change state
> income tax rates.
> Stephen
Jun 6th 2003, 5:01 pm
#15
Guest
Posts: n/a
Re: Income Tax in Canada
"kurakot" wrote in message news:...
> with BUSH tax cuts - incomes $$ 40,000 USD or below would pay
> little or no tax at all
Not quite. The National Post article said:
" A typical family of four earning less than
US$40,000 will now pay no federal income tax at all."
That's not the same as saying incomes of $40,000 or below
would pay little or no tax at all. That's because of the
exemptions and deductions that the US gives for
dependants, and the fact that there are different tax
rates for people who are married and who file
joint returns versus the rates for single people.
Also, the article refers only to federal income taxes. Most
states (and even some cities) have an income tax and those
rates are not changed.
It also does not take into account US Social Security (FICA)
or Medicare taxes.
Still, it's an eye-opener for Canadians.
Stephen Gallagher
> with BUSH tax cuts - incomes $$ 40,000 USD or below would pay
> little or no tax at all
Not quite. The National Post article said:
" A typical family of four earning less than
US$40,000 will now pay no federal income tax at all."
That's not the same as saying incomes of $40,000 or below
would pay little or no tax at all. That's because of the
exemptions and deductions that the US gives for
dependants, and the fact that there are different tax
rates for people who are married and who file
joint returns versus the rates for single people.
Also, the article refers only to federal income taxes. Most
states (and even some cities) have an income tax and those
rates are not changed.
It also does not take into account US Social Security (FICA)
or Medicare taxes.
Still, it's an eye-opener for Canadians.
Stephen Gallagher