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http://ca.news.yahoo.com/canada-aims-balance-budget-2015-eye...

Canada wants to balance budget in 2015, may invest to grow economy

The plan will not include tax hikes and the government will continue to look for ways to cut spending, he said.

"From the experience of Greece and beyond, Canadians know that the consequences of unsustainable finances are all too painful," he said.


Can I become a Canadian?
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Can I become a Canadian?

Yes.
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Can I become a Canadian?

Only if you accept our socialist health care.
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"Can I become a Canadian? "

Not a bad idea. I teased my son by telling him that if Obama was re elected, he may want to move to Australia, or at least Canada:)
Sully
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Canada wants to balance budget in 2015, may invest to grow economy

While spending cuts play a role, do you think the higher than US tax rates in Canada might also be a factor? More revenue helps to balance the budget.

You can read about Canadian income tax rates here:

http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

High income earners (generally over about $132,000) play 29% to federal government and 10% (Alberta) or more to the province. So the overall income tax rate varies from 39% (Alberta) to 50% (Nova Scotia).

http://www.taxrates.cc/html/canada-tax-rates.html

Further, these tax rates apply to Canadian resident's worldwide income.

Then, there is a national value added tax, i.e. sales tax, and all provinces other than Alberta add a provincial value added tax. The three territories do not have a territorial sales tax. In Canada these are referred to as federal GST (Goods & Services Tax) and provincial PST (provincial sales tax). Some provinces combine the two into a HST (harmonized sales tax). The total sales tax ranges from a low of 5% (lowest - GST only) in Alberta, 10% (second lowest) in Saskatchewan, to 15.5% (highest) in Prince Edward Island.

http://en.wikipedia.org/wiki/Taxation_in_Canada#Sales_taxes

Also, there are federal and provincial/territorial payroll taxes.

What else will help Canada balance their budget? Less spending on defense. While the US spends 4.7% of GDP on defense, Canada spends 1.4% of GDP on defense.

So if one were to hold up Canada as an example of what the US should do, one would conclude that the US should cut spending - particularly defense spending - and increase taxes.

Chris

PS. Canadian also enjoy universal health coverage.
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While spending cuts play a role, do you think the higher than US tax rates in Canada might also be a factor? More revenue helps to balance the budget.

You can read about Canadian income tax rates here:
___________________

Hi Chris

as long as you are an expert on Canadian taxes, I have a few question that will make this easier to consider

Does Canada have a seperate social security tax that is not part of the income tax? What about Medicare? Why did the corporate tax cut to far lower than here happen to coincide with so much getting better?

What kind of deductions are made by Canadian taxpayers?

Are there taxes on things like electricity, and a lot of other items that go into general revenue that no one really sees but are there?

I have a few hundred other questions before I am sure they are paying a lot more taxes than me, but those will be a good start

thanks
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I have a few hundred other questions before I am sure they are paying a lot more taxes than me, but those will be a good start

The answer, as usual, is: it depends.

http://www.investopedia.com/financial-edge/0411/do-canadians...

orinjade
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You can read about Canadian income tax rates here:

High income earners (generally over about $132,000) play 29% to federal government and 10% (Alberta) or more to the province. So the overall income tax rate varies from 39% (Alberta) to 50% (Nova Scotia).


In the U.S. a married couple pays 25% federal on taxable income over $70,700 and 28% over $142,700.

In Oregon, state tax is 9% of everything over $15,500 for a couple. Total income tax would be 34% up to $142,700, then 37% above that.

In California, state tax is 9.3% of everything over $97,884 if filing jointly. Total would be 34.3% up to $142,700, then 37.3% above that.

In NYC the combined city and state tax is 9.984% over $45,000 if filing jointly. It goes up to 10.04% over $90,000. Totals would be about 35% and 38%.

All of the above numbers are much worse for single taxpayers.

And you lose deductions and exemptions as your income gets higher, which pushes more of your income into the higher bracket.

And you pay 1.45% Medicare tax on all salary and business income.

So personal income taxes are not terribly different in some places and California's and NY's most populous counties have sales taxes north of 8%.

--fleg
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I have a few hundred other questions before I am sure they are paying a lot more taxes than me, but those will be a good start

The answer, as usual, is: it depends.

http://www.investopedia.com/financial-edge/0411/do-canadians......

orinjade
______________

Well thank you for the information, but as that says it is not easy to determine, and the poster was quite certain that Canadians are paying significantly more taxes, so I was trusting with their expertise they would be able to give me the answer not generically but rather specifically to questions that must have already been considered by them, given their citation of fact.

Anyone can find general information, and most folks who are sane and not experts would know it is not easy to make those kind of blanket statements, without looking kind of foolish

So since I knew the poster was not a partisan crackpot hack, I was looking for some rather exact answers.
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Does Canada have a seperate social security tax that is not part of the income tax? What about Medicare? Why did the corporate tax cut to far lower than here happen to coincide with so much getting better?

What kind of deductions are made by Canadian taxpayers?

Are there taxes on things like electricity, and a lot of other items that go into general revenue that no one really sees but are there?


Hey Lowstud,

I can answer some of those right away.

There is no separate SS tax.

In BC I pay 57$ each for me and Missus Riprock for Medicare. That fee is the same for all, babies, seniors kids, whomever, except the destitute don't have to pay. In other provinces, there is no fee.

There are taxes on things like electricity. They vary from province to province, but they're there.

Income tax deductions vary also from province to province, but are most likely the same as what you are used to. One big exception is that there is no mortgage interest deduction. On the plus side, especially for me (I'm retired and live off my stock portfolio dividends), there is a $50,000 tax credit for dividends earned from Canadian stocks. My whole income tax bill for last year was zero.

The main tax is not exactly a sales or Value-added tax. It's GST (Goods and Services Tax) and it applies to pretty much everything, even houses. It can add a huge amount to the price of a house or car. So the less you spend, the less tax you pay. A lot of tradesmen will offer cash deals for small jobs so they aren't saddled with paperwork, and you get to evade the tax (I never said that!).

Rip
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Does Canada have a seperate social security tax that is not part of the income tax?

Yes

What about Medicare?

Canada has universal health coverage so there is no separate health plan for seniors like Medicare in the US. Funding comes from a variety of sources both federal and provincial. Some provinces levy health care premiums which some might consider equivalent to a Medicare tax in the US.

As for the deductions, you'll have to figure that out on your own.

Chris
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So personal income taxes are not terribly different in some places and California's and NY's most populous counties have sales taxes north of 8%.

According to the following website:

http://taxfoundation.org/article/state-and-local-sales-taxes...

Tennessee has the highest combination of state and local sales tax at 9.45%. The most populous places in Canada - Ontario and Quebec (roughly 60% of Canada's population) - pay 13% or higher.

Chris
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Canada has universal health coverage so there is no separate health plan for seniors like Medicare in the US. Funding comes from a variety of sources both federal and provincial. Some provinces levy health care premiums which some might consider equivalent to a Medicare tax in the US.
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Yes, a variety of sources, for instance, a bottle of vodka is $499 and a case of Molson is $99, on the bright side healthcare is free.
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