U.S. Distribution of Wealth Now Worse Than Banana Republics

[gopher]

''If the government is powerful enough to give you everything you want, it is powerful enough to take everything you have.''

The government gives everything to the corporations but takes nothing from them.

 

[ironsides]

True enough, that is what some of us are trying to change. Just have to get the right person/persons into power. (there must be some who cannot be corrupted by Washington) We shall see what this new group of rookie politicians handle it. If not there is always 2012, a lot of people still believe that the government is the people.

 

[Trotz]

We should not be relying on character when we can do one simple thing: audit all the purchases of politicians.

I know in my province, most accountants should be able to put 1 + 1 together and realize that someone like Gordon Campbell couldn't afford all those properties on a premier's salary!


It's a crooked system isn't it? If you're smart enough to bring an end to all the systematic theft and corruption than the system itself will probably offer you a job and enough money to remain silent.

 

[Bar Sinister]

The 29% is the top federal tax rate. The second figure represets the provincial component.

The original question you posted was a requet for a North American jurisdiction where hey pay 59% (or along these lines). In the end, the provincial income tax rate (at the top end) in Quebec is 24%... These 2 figures ar applied independently to the income of an individual. That said, a person that is making $1 million per year will pay in excess of 50% of their total income towards the federal component (29%) and an additional 24% to the province. Considering that in excess of 9/10ths of that tol income (1 million) is well into the top threshold, their applicable (combined) income tax rate is still over 50%.

I realize that this amount is not = to 59%, however, factor in other taxes like PST, VAT, GST and property taxes, that overall practical rate is into the 60%'s.

In terms of the link you provided, I'm confounded how they came up with 30.2%... My only guess is that it is the federal rate plus some margin or error. To my knowledge, teh least expensive provincial tax rate in Canada is in Alberta at 10%.. Combine that with the fed rate and the top tax (combined) braket in AB is 39%.






The point I was making re: Japan is that when the Japanese gvt increased rates, a significant amount of that expansion occurred outside of Japan; the Yen fled Japan to invest elsewhere.





Your comment is fair, particluarly the point of monopolies and/or oligarchies... However, the catch-22 on that practice is that the middle class corporations like mom & pop shops, or small(ish) local franchises are ought up in these high taxes and makes it difficult tfor them to grow into the next stage.

I suspect you are misinterpreting the tax rates. Even taking federal, provincial, and municipal taxes into account there is no number close to 59%. Even the Fraser Institute, which tends to exaggerate tax rates, gives Tax Freedom Day as sometime in June. That would make the average tax burden far less than 59%. I think you are confusing marginal rates with the average rate. Just curious, why did you select $1,000,000 as your example? That is an income hardly typical of the average Canadian.

Going back to Japan. I'm not sure what your point is. Japanese firms still pay tax on overseas earnings and in any case I was referring to taxes on individuals in Japan, not corporations.

I have no problem with your comment on mom and pop operations. Obviously if corporations were restricted in their business programs smaller businesses would have a better chance. The question is whether the powers that be will restrict companies like Walmart in favour of the corner store or much smaller domestic enterprises. That has not happened so far, which is why Canada no longer has an Eaton's or Woodward's and why the Bay is now owned by an American.

 

[captain morgan]

I suspect you are misinterpreting the tax rates. Even taking federal, provincial, and municipal taxes into account there is no number close to 59%. Even the Fraser Institute, which tends to exaggerate tax rates, gives Tax Freedom Day as sometime in June. That would make the average tax burden far less than 59%. I think you are confusing marginal rates with the average rate. Just curious, why did you select $1,000,000 as your example? That is an income hardly typical of the average Canadian.

I suppose that we have to agree to disagree.... For the record, I I used an example of a $1 million income to illustrate my position that it is possible to pay in excess of 50% of income in taxes

 

[DaSleeper]

Federal and provincial tax rates in Canada.....

What are the income tax rates in Canada?

 

[Bar Sinister]

Federal and provincial tax rates in Canada.....

What are the income tax rates in Canada?

Thanks, D. I think that table confirms my point about it being impossible to pay taxes in excess of 50% unless you play a lot of lotteries.

 

[captain morgan]

You still have to ad in the provincial rate.

If you go to the Revenu Quebec website, you will see that the top marginal rate for those that earn inexcess of $76,770 pay a 24% provinial tax rate on top of the fed rate... The fed rate (29%) and Quebec's rate (24%) combine to 53%.

Here's the link: Revenu Québec - Income tax rates - Income Tax - Citizens

 

[Tonington]

If you go to the Revenu Quebec website, you will see that the top marginal rate for those that earn inexcess of $76,770 pay a 24% provinial tax rate on top of the fed rate... The fed rate (29%) and Quebec's rate (24%) combine to 53%.

Here's the link: Revenu Québec - Income tax rates - Income Tax - Citizens

Technically it's only 53% for those who make more than $127,021. Someone who makes $76,771 pays 24% to Quebec, and 22% to Ottawa.

Also, it's not always the case that those who earn the most pay the largest percentage of their income in taxes. I started a thread on this back in the summer, http://forums.canadiancontent.net/canadian-politics/95402-federal-income-tax-regressive-not.html

 

[Bar Sinister]

You still have to ad in the provincial rate.

If you go to the Revenu Quebec website, you will see that the top marginal rate for those that earn inexcess of $76,770 pay a 24% provinial tax rate on top of the fed rate... The fed rate (29%) and Quebec's rate (24%) combine to 53%.

Here's the link: Revenu Québec - Income tax rates - Income Tax - Citizens

Let's see how those figures actually work using your million dollar salary. Using the link below you can see that you would pay tax of $466,276. Try it. Just put the number in the space and it is calculated for every province.

Of course, that is assuming you have absolutely no deductions. If the one million is your net income after deductions, then the rate would be much lower as your starting figure would be much higher.

http://lsminsurance.ca/calculators/canada/income-tax

 

[ironsides]

This need no commenting, we all knew the left would get around to it sooner or later. This is one way Obama hard core supporters want to clean up the economic problem.

Economist and New York Times columnist Paul Krugman says the only way the U.S. will get its debt crisis under control is by the use of "death panels" and a national sales tax.

The national sales tax, referred to as VAT (value-added tax) and widely used by governments across Europe, will help cut the U.S deficit, Krugman argues.

Krugman made his comments on ABC's “This Week with Christiane Amanpour” during a roundtable discussion about the economy and the recent findings of the U.S. Debt Reduction Commission.

Here's the key excerpt:

"Some years down the pike, we're going to get the real solution, which is going to be a combination of death panels and sales taxes. It's going to be that we're actually going to take Medicare under control, and we're going to have to get some additional revenue, probably from a VAT. But it's not going to happen now."

Krugman: Death Panels, VAT Will Fix Debt Crisis

 

[Bar Sinister]

This need no commenting, we all knew the left would get around to it sooner or later. This is one way Obama hard core supporters want to clean up the economic problem.

Economist and New York Times columnist Paul Krugman says the only way the U.S. will get its debt crisis under control is by the use of "death panels" and a national sales tax.

The national sales tax, referred to as VAT (value-added tax) and widely used by governments across Europe, will help cut the U.S deficit, Krugman argues.

Krugman made his comments on ABC's “This Week with Christiane Amanpour” during a roundtable discussion about the economy and the recent findings of the U.S. Debt Reduction Commission.

Here's the key excerpt:

"Some years down the pike, we're going to get the real solution, which is going to be a combination of death panels and sales taxes. It's going to be that we're actually going to take Medicare under control, and we're going to have to get some additional revenue, probably from a VAT. But it's not going to happen now."

Krugman: Death Panels, VAT Will Fix Debt Crisis

The sad truth is that someone has to pay the bills. In the US the middle class is pretty much tapped out. That leaves any government with only a few limited choices: raise taxes on those who can afford to pay; cut services; or a combination of the two. The alternative is to simply let the US national debt continue to rise until it reaches levels that will eventually cripple US society. The "Death Panels" Krugman was referring to are not really death panels at all. They are the same sort of thing that exist in any nation with a medicare system. Choices have to be made as to what medical services will be provided to the population as providing everything is simply too costly.

 

[petros]

YouTube - Quantitative Easing Explained

 

[ironsides]

The sad truth is that someone has to pay the bills. In the US the middle class is pretty much tapped out. That leaves any government with only a few limited choices: raise taxes on those who can afford to pay; cut services; or a combination of the two. The alternative is to simply let the US national debt continue to rise until it reaches levels that will eventually cripple US society. The "Death Panels" Krugman was referring to are not really death panels at all. They are the same sort of thing that exist in any nation with a medicare system. Choices have to be made as to what medical services will be provided to the population as providing everything is simply too costly.

Right now the choices are open with little or no restrictions. The so called old people have paid their dues to a goverment that made a contract with them. If they want changes without causing problems with those noworking, they have to come up with a new Social Security program that begins on the day they rewrite and get it signed into law. I do not think there will be any changes anytime soon.

 

[petros]

A mortgage if you still have one will soon become your cheapest payment when the inflation hits.