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URL:  http://boards.fool.com/i-wonder-when-intercst-will-realize-that-if-folks-27733502.aspx

Subject:  Re: End of the Health Care debate Date:  6/8/2009  7:19 PM
Author:  tecmo Number:  19321 of 59653

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)
Mortgate: $15K
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.

tecmo
...

PS: Don't most states have sales taxes as well?
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