So, I’ve done the math.
Let’s take someone with twice the avg canadian salary.
They’re making $130k/year.
They pay about 29% tax. $38116/year.
Let’s say they own property in a HCOL area. Maybe $3k/year property tax.
That leaves them with $88k left.
Assuming worst case scenario - they don’t pay mortgage or rent or anything and spend every penny. So they’re paying about $13332 in sales tax.
That leaves 75550 that they’ve spent before tax.
Which is about 42% of their income going to tax paid, in total.
Again. That’s worst case scenario. In reality, they’re paying a mortgage and/or contributing to an RRSP or even paying rent. All of which would substantially reduce that percentage.
The idea that Canadians (on average) are paying 50% tax is just right wing propaganda bullshit designed to scare you in to cutting social programs in hope of getting a little trickle down action. Don’t fall for it.
For me, I’m paying about 35% tax, in total. Including sales tax, income tax, and property tax. And I think I’m far closer to the “normal” percentage most middle class Canadians pay.
There are many other taxes. There are luxury taxes, payroll taxes, land transfer taxes, estate taxes, import duties, tariffs, and many excise taxes just as examples. There are a lot of “registrations” and tolls that are really just taxes. And the GST and often Provincial taxes are not just charged to the end consumer but in fact multiple times along the supply-chain in practice.
If you live in BC, your property tax is likely more than you suggest. If you drink, your sales tax will be as well. If you rent, how much are you paying to cover your landlords income tax? And again, there are many other taxes. Again using BC, gasoline tax is 37 cents a litre of tax before you tack on the GST. That can be 50%. And the tax on cigarettes can be 250%. What is your total tax rate if you spend your $88k “after-tax” income on gas and cigs?
Ontario slashed their liquor tax in half. Now it is only 30%.
I am not sure that saying 50% is propaganda and then calculating it to be 42% is a total slam dunk anyway. But it is also far from the worst case scenario as you left a lot of stuff out.
And, if it was 42%, you land on June 8 which is exactly when the Fraser Institute says tax freedom day is anyway. Those lying bastards!
But I get your point.
And I am quite happy with the way Canada manages taxation (though perhaps not spending). I am not trying to scare anybody into anything.
So, I’ve done the math. Let’s take someone with twice the avg canadian salary.
They’re making $130k/year.
They pay about 29% tax. $38116/year.
Let’s say they own property in a HCOL area. Maybe $3k/year property tax.
That leaves them with $88k left.
Assuming worst case scenario - they don’t pay mortgage or rent or anything and spend every penny. So they’re paying about $13332 in sales tax.
That leaves 75550 that they’ve spent before tax. Which is about 42% of their income going to tax paid, in total.
Again. That’s worst case scenario. In reality, they’re paying a mortgage and/or contributing to an RRSP or even paying rent. All of which would substantially reduce that percentage.
The idea that Canadians (on average) are paying 50% tax is just right wing propaganda bullshit designed to scare you in to cutting social programs in hope of getting a little trickle down action. Don’t fall for it.
For me, I’m paying about 35% tax, in total. Including sales tax, income tax, and property tax. And I think I’m far closer to the “normal” percentage most middle class Canadians pay.
There are many other taxes. There are luxury taxes, payroll taxes, land transfer taxes, estate taxes, import duties, tariffs, and many excise taxes just as examples. There are a lot of “registrations” and tolls that are really just taxes. And the GST and often Provincial taxes are not just charged to the end consumer but in fact multiple times along the supply-chain in practice.
If you live in BC, your property tax is likely more than you suggest. If you drink, your sales tax will be as well. If you rent, how much are you paying to cover your landlords income tax? And again, there are many other taxes. Again using BC, gasoline tax is 37 cents a litre of tax before you tack on the GST. That can be 50%. And the tax on cigarettes can be 250%. What is your total tax rate if you spend your $88k “after-tax” income on gas and cigs?
Ontario slashed their liquor tax in half. Now it is only 30%.
I am not sure that saying 50% is propaganda and then calculating it to be 42% is a total slam dunk anyway. But it is also far from the worst case scenario as you left a lot of stuff out.
And, if it was 42%, you land on June 8 which is exactly when the Fraser Institute says tax freedom day is anyway. Those lying bastards!
But I get your point.
And I am quite happy with the way Canada manages taxation (though perhaps not spending). I am not trying to scare anybody into anything.