I've always loved the usa and believed in the American dream

But after I saw the difference in income tax difference, it doesn't make sense anymore



12.2 vs 2.4%

Change my mind misc

Uwot?

My buddy makes close to 150k as an employee and losesaround halfa good chunk* of his income to taxes. Married, two kids.


edit: Just saw single earner. Still, 2.4%? Is that the federal tax?

edit 2: *buddy might have exaggerated

people who make millions in the US make money through capital gains and not with income

Also any upper middle class american is getting taxed close to 40-45% between local, state and federal taxes, that 12% is irrelevant given it is justone of the taxes to be paid

/thread

What country is he in

These out the tax brackets in Canada.

https://turbotax.intuit.ca/tips/an-o...-tax-rates-286

That’s just federal. You also pay provincial income tax another 5-15% depending on your province.

About 35% of what I make is gone to taxes before I ever see it. Then add a 15% sales tax on everything I purchase.

No you don't. Where do you live?

In Ontario you pay 29.85% average tax on 120k income. It's similar for most provinces, some are less.

https://www.wealthsimple.com/en-ca/tool/tax-calculator/

Don't get confused by looking at your highest marginal tax bracket. You have to look at your average tax rate... or take the total amount of tax you pay and divide it by your total income.

Canada, province of Quebec.

edit: my buddy might have exaggerated his "almost half goes to taxes"

Not worth selling your soul for. Your balls will freeze right off living here in Cucknada

I dont understand any of this chit though but tax refunds are awesome

Ok I'll tell you

Canada's income tax rates are comparable to those of the US

We also have a weaker dollar, one of the worst housing markets in the world, expensive groceries, the highest auto insurance rates in the developed world (cars are also more expensive since we don't manufacture our own), a telecomm monopoly which leads to the highest cell phone and cable bills in the world, and it's basically the epicentre of clown world (a strong case could also be made for NYC).

Shall I continue?

cos 1,000,000 cnd = 350 us

On this episode of miscers can't do math..

Spoken like a true tradie

Respeck

lol

Please doIt's even worse that his country probably don't even allocate those paid taxes justly

In Canada capital gains are taxed significantly lower as well. Regular capital gains are taxed at 50% of the same tax rate as income tax. So that 120k i just mentioned would only be taxed at 15% (that's combined federal and provincial) (may even qualify for exemptions to lower/reduce this)

Combine this with the small business corporate tax rate in canada and the taxation rate is pretty low for rich people as well. You can pay as little as 9-13% (depending on province) for corporate tax rate.... if you qualify as small business you also get an exemption on those capital gains taxes up to ~900k of capital gains related to closure/selling of your business. That means you can run a business produce 1m of profit pay 100k in corporate tax... and get a full exemption when you sell your shares or shut down your business... Meaning take home 900k into your personal account after everything is paid on 1 million in profit for a ~10% effective tax rate.

Anyway that's just one example.

Taxes are higher in Canada. They just call them different things. It isn't just 'income tax.'

Hmmmm

If that's the case why aren't major corporations in the world headquartered in CanadaYea, that's the way they fund their social benefits and health care for their people

Because they are too large to qualify for small business tax deduction. I wasn't trying to say that canada's tax environment is friendly for large corporations. I don't believe that it is but for small businesses it's great, can't complain. For capital gains it's not too bad either....

but for regular salaried employee making 200k a year yeah it's not great....

but like what's been alluded too in this thread several times its not just income tax. Income tax is not that much more in Canada vs US and for some people it might be the same or even less in Canada... but it's not just about income tax, we get taxed so much higher on so many other things in Canada. Consumption based taxes are very high in Canada plus we have government corporations which is some more covert taxation.. and we have mandated monopolies and just lots of things that drive up other costs. Plus lower wages which has already been mentioned.

***** and PR mogg any North American country

Theres like 3 cities and everything else is wilderness

I grew up in ***** and now I'm blacklisted from there , family still there.

It's ok man. What makes me u think it's so special

Let me debunk it for u