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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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