The Motley Fool Discussion Boards
Retirement Discussions / Retire Early Liberal Edition
|Subject: Re: End of the Health Care debate||Date: 6/8/2009 7:19 PM|
|Author: tecmo||Number: 19321 of 55726|
I wonder when intercst will realize that if folks make and spend $50K in Canada, everything they buy has a 15-19% tax.
Somehow, my math says that 19% tax on $50K income means you pay $9000 in VAT taxes a year.
I corrected your 15-19% number already; but you need to understand this is not applied to your income. It is a consumption tax; and it doesn't apply to everything.
if you have $50K income you are likely spending 1/3 of that on your mortgage; which is not going to be taxed.
Income: $50K (assume this is after income taxes)
Food: $7,500 (typically GST exempt)
That leaves $27.5K which would probably be taxes at that rate. In Alberta you would probably pay $1375, in Ontario it would be $3575.
PS: Don't most states have sales taxes as well?
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|