Penalized for working.

[Machjo]

I should add another advantage with a resource tax such as a gas tax is that it also gives local businesses a slight advantage over businesses from farther afield, thus encouraging local business development without the need for artificial tariffs on imports.

 

[petros]

You are right our resource profits truly suck ass and when you add the lowest business taxes to the lowest resource royalties we end up giving our resources away for free after all the subsidies and tax breaks.

 

[AnnaG]

Why do we tolerate a tax system that penalizes working?

Sheeple.

Would you be willing to pay a 25% GST type consumption tax if income tax were eliminated?

Yup. Consume more, pay more. Makes sense to me.

At first thought it sounds harsh to pay but keep in mind producer and import taxes would plummet and so would retail goods thus having little impact on the poor and finally including them in the tax scheme.

Our current system discourages overtime for those willing to earn more. A large number of tradesmen only work 3/4 of the year because it's pointless in the long run..

What do you think?

Weird, aren't we? (that's rhetorical)

 

[ironsides]

Why do we tolerate a tax system that penalizes working?

Would you be willing to pay a 25% GST type consumption tax if income tax were eliminated?

At first thought it sounds harsh to pay but keep in mind producer and import taxes would plummet and so would retail goods thus having little impact on the poor and finally including them in the tax scheme.

Our current system discourages overtime for those willing to earn more. A large number of tradesmen only work 3/4 of the year because it's pointless in the long run..

What do you think?

Because to many people would rather not work and be supported by those who have a work ethic. In answer to your question: Yes

 

[YukonJack]

When I joined the Company I retired from after almost 38 years, I bought a number of shares that I could afford at the time. Bought more in subsequent years.

But since I had a stake, I never refused overtime. And I was proud to be called a scab by union pustules.

 

[petros]

Because to many people would rather not work and be supported by those who have a work ethic. In answer to your question: Yes

What people are these? Guys like you who got all they needed but refuse to give back?

 

[petros]

And I was proud to be called a scab by union pustules.

Were you there at the begining of the union movement having your teeth kicked out by hired company goons. You had no problem taking and accepting the benefits of someone elses blood but have the balls to call them pustiles as a Johnny come ****ing lately?

 

[SirJosephPorter]

What do I think? I recently opened an old pay stub, (I do that occasionally just to make sure they are actually paying me as much as they say they are), and this was a separate one for a small stipend of $425. The only deductions were for Federal and Provincial taxes, CPP and EI, my net was $198. WTF!!!!. I get less than half of what I worked for :angryfire:. Don't ask me what I think, and don't even dare claim I earn too much, (unless you want to try to do my job).

That does not sound right, bob. Which year was it? What you are saying is that with the income of 425 $ per month (or per week, whatever), you are paying 60% of your income in the form of taxes. That is not only unlikely, but outright impossible.

Today, even if you earned 100,000 $ per year, there is no way you will be paying 60% of that in the form of CPP. EI and tax. Something is wrong somewhere. Are you sure there were no other deductions? If not, they were clearly ripping you off. Don’t blame the government; blame your employer for essentially cheating you out of your money.

 

[YukonJack]

petros, I was there when when my tires were slashed by union goons, who wanted to deny my right to work.

Please show me where it says in any Canadian law, that the arrival date determines the value of one's opinion.

Being called a scab is far worse than being called a pustule.

 

[AnnaG]

That does not sound right, bob. Which year was it? What you are saying is that with the income of 425 $ per month (or per week, whatever), you are paying 60% of your income in the form of taxes. That is not only unlikely, but outright impossible.

That you can't comprehend what you read is not only entirely possible, but outright probable.
Nowhere does he say that that was his monthly salary. What he said was "and this was a separate one for a small stipend of $425."

Today, even if you earned 100,000 $ per year, there is no way you will be paying 60% of that in the form of CPP. EI and tax. Something is wrong somewhere. Are you sure there were no other deductions? If not, they were clearly ripping you off. Don’t blame the government; blame your employer for essentially cheating you out of your money.

^-- digging his hole deeper ...

 

[SirJosephPorter]

Machjo, since I am now retired (have been for seven years) I do not do any work to be taxed.

Yet, I am paying roughly 40% on my company pension, investment income and even on government provided Canada Pension and Old Age Security.

Again, on the face of it, that sounds like nonsense. 40% tax bracket kicks in at income of 80,000 $ per year. Anything more than 80,000 $ is taxed at 40%. Are you saying that your annual income is more than 80,000? Even if you do, the tax still will not come to 40% (it will be that much only for income over and above 80,000).

And here we are talking of salary or interest income. You claim you have investment income. Well capital gains is never taxed at 40%, even if you make a million $ of it in a year. Same with dividend, that is taxed at much lower rate than interest income or salary. That 40% sounds like wild exaggeration. Either that or they are ripping you off.

I looked up how much I deduct from my wife’s secretary (I look after the payroll). She earned around 22000 $ last year. Total deductions from her salary, CPP, EI and tax, came to 15%.

I have no idea why people bandy about such wild figures, whether 40% by you or 60% by Bob. Let us have some perspective here.

 

[bobnoorduyn]

Hi Bob,
Haven't seen you around in ages. How are things? We pay those taxes because we are the passive Canadians and - our government knows we will do little more than pay lip service to it.

Hi there, its been a while alright, but I've been around a bit but I've been pretty busy too. We pay those taxes too because we have no choice, and governments are greedy.

 

[AnnaG]

Again, on the face of it, that sounds like nonsense. 40% tax bracket kicks in at income of 80,000 $ per year. Anything more than 80,000 $ is taxed at 40%. Are you saying that your annual income is more than 80,000? Even if you do, the tax still will not come to 40% (it will be that much only for income over and above 80,000).

And here we are talking of salary or interest income. You claim you have investment income. Well capital gains is never taxed at 40%, even if you make a million $ of it in a year. Same with dividend, that is taxed at much lower rate than interest income or salary. That 40% sounds like wild exaggeration. Either that or they are ripping you off.

I looked up how much I deduct from my wife’s secretary (I look after the payroll). She earned around 22000 $ last year. Total deductions from her salary, CPP, EI and tax, came to 15%.

I have no idea why people bandy about such wild figures, whether 40% by you or 60% by Bob. Let us have some perspective here.

wow Another display of incomprehension. Fascinating.
English is your 2nd language and you keep flunking lessons?

 

[bobnoorduyn]

That does not sound right, bob. Which year was it? What you are saying is that with the income of 425 $ per month (or per week, whatever), you are paying 60% of your income in the form of taxes. That is not only unlikely, but outright impossible.

It was last month!!!. I was a little off since I was working from memory - Total earnings = $412.50 - CPP (20.42) - EI (7.14) - Fed Tax (186.56) = $198.28. Regular pay stubs won't reflect how much we are getting ripped off. This was a separate earning, as if it were an hour of overtime paid out between pay periods. It shows that if you work harder you get penalized more. If the stub didn't have all sorts of private info on it I would post it here.

Today, even if you earned 100,000 $ per year, there is no way you will be paying 60% of that in the form of CPP. EI and tax. Something is wrong somewhere. Are you sure there were no other deductions? If not, they were clearly ripping you off. Don’t blame the government; blame your employer for essentially cheating you out of your money.

CPP and EI take a large chunk of our money, but at least I'm almost paid off for the rest of the year. But we always get a nice X-mas gift each year, the return of those deductions. Remember too, I live in one of the most highly taxed at source jurisdictions too. I know it is correct, it just isn't right.

 

[YukonJack]

SirJosephPorter, my income is my business, which you don't know anything about.

BTW, I would not trust any doctor whose annual earning was only $22.000.00.

 

[bobnoorduyn]

I looked up how much I deduct from my wife’s secretary (I look after the payroll). She earned around 22000 $ last year. Total deductions from her salary, CPP, EI and tax, came to 15%.

I have no idea why people bandy about such wild figures, whether 40% by you or 60% by Bob. Let us have some perspective here.

I bandy around those figures because that is what is staring me in the face right now. For perspective, on that particular pay stub I am looking at, (which is from last month yet), I have already paid more than half in income tax alone than your wife's secretary grossed last year. I've also paid almost $1900 in CPP and $700 in EI, and we were only 3 1/2 months into the year, and not even the busy season. The harder you work the more, and more, and more you pay, great Canadian incentive eh?

 

[bobnoorduyn]

SirJosephPorter, my income is my business, which you don't know anything about.

BTW, I would not trust any doctor whose annual earning was only $22.000.00.

That was my first read too, but read closer, it is her secretary, a bit closer to the bottom end.

 

[TenPenny]

Many people don't understand how payrolls are computed.

The important thing to note is that, at the end of the year, the tax, EI, and CPP that you owe is based on the total you make, and it all works out in the end. If you do a lot of overtime, and one pay period shows large deductions, it gets balanced out when you do your taxes, and get a refund.

There is, for example, a maximum CPP premium payable, once you reach the limit, your employer (if they use proper payroll procedures) is supposed to stop deducting it, or you get it refunded anyway.

Taxes and EI premiums are deducted each pay period based on the assumption that each pay period is typical, so for example, if you work a lot of OT one period, the taxes deducted will be high, because the taxes are deducted based on the idea that you make this income every pay period, but at the end of the year, you only pay the taxes based on your actual income, and you get the rest back.

 

[SirJosephPorter]

SirJosephPorter, my income is my business, which you don't know anything about.

BTW, I would not trust any doctor whose annual earning was only $22.000.00.

It doesn't matter, YJ. I gave the secretary simply as an example. However, even if you are earning 10,000 $ a month (and plainly you are earning less than that, otherwise your old age security will be clawed back 100%), the deductions still do not come to 40%.

If they are deducting 40% from your income, somebody is clearly cheating you.

 

[SirJosephPorter]

It was last month!!!. I was a little off since I was working from memory - Total earnings = $412.50 - CPP (20.42) - EI (7.14) - Fed Tax (186.56) = $198.28. Regular pay stubs won't reflect how much we are getting ripped off. This was a separate earning, as if it were an hour of overtime paid out between pay periods. It shows that if you work harder you get penalized more. If the stub didn't have all sorts of private info on it I would post it here.

Plainly they deducted an outrageous amount of tax, bob. Anyway, i assume you got most of that 198.28 back at the end of the year.

CPP and EI take a large chunk of our money, but at least I'm almost paid off for the rest of the year. But we always get a nice X-mas gift each year, the return of those deductions. Remember too, I live in one of the most highly taxed at source jurisdictions too. I know it is correct, it just isn't right.

It is not good planning to get a refund. Ideally you should owe taxes at the end of the year. If you get say, 10,000 $ refund that means government has been using your money for one year and not giving you any return for it. But if you owe government 10,000 $ per year (and I always try to arrange it so that I owe them money, not other way around), that means you have been using government's 10,000 $ for a year to earn more money.

Particularly if you get a large refund year after year, that denotes poor financial planning.