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Canada has taxes as high as 39% ,really? lowest being 30% or so

by Joshua P
16 replies
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Well yes thats true....they say its because they get free health benefits etc

But, when running a freaking business, even if you make a 20% profit ,at "just" 30% tax rate that would mean a 10% loss, that is freaking ridiculous!

Although this rate is for 100k and above....ones below this bracket are not much less...like 25% or so.


I'm talking all taxes combined federal,income,provisional.

There are many calculators online if you wish to calculate.








Now heres a bummer,
For people in Canada making 1 million dollars a year...the "lowest" amount of taxes to be paid was around 250 k or so


highest was around 350k...and slightly more.


So,from a million I make(say) ,I get to keep just 650k or so.






Am I missing something or is this the most ridiculous thing I've ever come across, really!
  • Profile picture of the author Richard Van
    Originally Posted by Joshua P View Post

    Well yes thats true....they say its because they get free health benefits etc

    But, when running a freaking business, even if you make a 20% profit ,at "just" 30% tax rate that would mean a 10% loss, that is freaking ridiculous!

    Although this rate is for 100k and above....ones below this bracket are not much less...like 25% or so.
    If you make a 20% profit you pay the tax on that. So if your total profit was $100k you'd have $70k left over assuming 30% tax.

    So if you make a profit of 20% that total amount is what you'll pay the 30% tax on in your example. You won't make a 10% loss. No one would run a business if that was the case.

    Does that make sense?

    That is just the higher tax bracket, it's the same over here, in fact I think it's higher and it's why people with that sort of money try to find tax loop holes.

    Originally Posted by Joshua P View Post

    So,from a million I make(say) ,I get to keep just 650k or so.
    Yes, that's about it but don't forget you can also off set a lot of the tax with costs to your business, company car, office space etc etc, that's why you keep all your receipts, so you may not actually wind up paying the 39% or whatever it was you mentioned.
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    • Profile picture of the author Joshua P
      Originally Posted by Richard Van View Post

      If you make a 20% profit you pay the tax on that. So if your total profit was $100k you'd have $70k left over assuming 30% tax.

      So if you make a profit of 20% that total amount is what you'll pay the 30% tax on in your example.

      Does that make sense?
      so,if I invest $100 in advertising and make back $120, I pay taxes on $20 only?

      After all, its the $120 that enters my bank not $20.


      Never played with taxes
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      • Profile picture of the author Richard Van
        Originally Posted by Joshua P View Post

        so,if I invest $100 in advertising and make back $120, I pay taxes on $20 only?

        After all, its the $120 that enters my bank not $20.


        Never played with taxes
        Yes that's about right. The $100k you invest is exactly that, you paid money to someone else for advertising, so that is money they will have to pay taxes on. The $20k profit you make, that total amount in cash, is what you'll then have to pay tax on.

        Having said that the advertising could be considered a business expense and offset from the total taxes you owe.

        Home-based businesses can write-off the portion of the home used for office space as well as any additional rented space. Advertising and promotion costs--including business cards, brochures or flyers, any kind of advertising and promotional giveaway--are write-offs.
        http://smallbusiness.chron.com/costs...ness-3123.html

        You're best off speaking to a reputable accountant in Canada though. I'm certainly no accountant.
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      • Profile picture of the author seasoned
        Originally Posted by Joshua P View Post

        so,if I invest $100 in advertising and make back $120, I pay taxes on $20 only?

        After all, its the $120 that enters my bank not $20.
        WRONG!!!!!!!!!!

        BANK BALANCE=BALANCE-100 ANY DECENT country, and usually the US here as well, considers the 100 a VALID EXPENSE so it IS ****TAX DEDUCTIBLE****

        BANK BALANCE=BALANCE+120

        TOTAL MONEY ADDED to BANK is TWENTY DOLLARS!!!!!!!!!

        MOST COUNTRIES, INCLUDING US, INCOME=120-100 or TWENTY DOLLARS!!!!!!

        A 30% tax rate would be SIX DOLLARS!

        Steve
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    • Profile picture of the author Joshua P
      Originally Posted by Richard Van View Post

      If you make a 20% profit you pay the tax on that. So if your total profit was $100k you'd have $70k left over assuming 30% tax.

      So if you make a profit of 20% that total amount is what you'll pay the 30% tax on in your example. You won't make a 10% loss. No one would run a business if that was the case.

      Does that make sense?

      That is just the higher tax bracket, it's the same over here, in fact I think it's higher and it's why people with that sort of money try to find tax loop holes.



      Yes, that's about it but don't forget you can also off set a lot of the tax with costs to your business, company car, office space etc etc, that's why you keep all your receipts, so you may not actually wind up paying the 39% or whatever it was you mentioned.
      Hmm great but what kind of loopholes can a 'common man' use?

      I guess only businesses can do so...not so sure again.

      When you say I can write-off...you mean I can deduct the tax amount or taxable amount?

      I think it decreases taxable amount so that we get taxed on a lower bracket if we're lucky...is that correct sir?

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  • Profile picture of the author socialentry
    Are you crazy? I live in Quebec, you make 60 k, you get taxed about 50% after all the income taxes.

    Our taxes are way too high.

    In a country that cannot be named, there are no taxes.
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    • Profile picture of the author Richard Van
      Originally Posted by socialentry View Post

      Are you crazy? I live in Quebec, you make 60 k, you get taxed about 50%.
      That's more like it is here too.
      Best to just find a local reputable accountant.
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      • Profile picture of the author whateverpedia
        Originally Posted by Joshua P View Post

        But, when running a freaking business, even if you make a 20% profit ,at "just" 30% tax rate that would mean a 10% loss, that is freaking ridiculous!
        Originally Posted by Joshua P View Post

        so,if I invest $100 in advertising and make back $120, I pay taxes on $20 only?

        After all, its the $120 that enters my bank not $20.
        Perhaps it's mathematics, not taxation that is your problem.

        Originally Posted by Richard Van View Post

        Best to just find a local reputable accountant.
        Can't add anything to that.
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        • Profile picture of the author Joshua P
          Originally Posted by whateverpedia View Post

          Perhaps it's mathematics, not taxation that is your problem.



          Can't add anything to that.
          really?
          I guess its the tax mechanics not my mathematics.

          There are rules that define whats deductible...maybe you know canada sees advertising as expenses...maybe I'm too dumb because I've never earned more to be able to pay my taxes..
          tor of its mathematics maybe you can explain Lol.

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        • Profile picture of the author Joshua P
          Originally Posted by whateverpedia View Post

          Perhaps it's mathematics, not taxation that is your problem.



          Can't add anything to that.

          Oh now I see you're comparing the 2 examples I gave...which was probably too obvious that they were different examples....maybe a check is required on common sense, LOL
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    • Profile picture of the author Joshua P
      Originally Posted by socialentry View Post

      Are you crazy? I live in Quebec, you make 60 k, you get taxed about 50% after all the income taxes.

      Our taxes are way too high.

      In a country that cannot be named, there are no taxes.
      Well then why haven't people considered moving out?

      50 freaking percent....like really?

      That could mean a difference between someone being rich...or poor!


      Damn
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  • Profile picture of the author Angle Warrior
    I don't know about Quebec taxes but in Ontario, Canada my income is taxed 21% and I get a annual return of about of about 30% of that, so it's not all that bad, but where we really get killed is at the retail side, gas, smokes, booze are heavily taxed much higher then our regular retail tax which is at 13.5%
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    • Profile picture of the author Joshua P
      Originally Posted by Angle Warrior View Post

      I don't know about Quebec taxes but in Ontario, Canada my income is taxed 21% and I get a annual return of about of about 30% of that, so it's not all that bad, but where we really get killed is at the retail side, gas, smokes, booze are heavily taxed much higher then our regular retail tax which is at 13.5%
      "Canada my income is taxed 21% and I get a annual return of about of about 30% of that"

      Well I don't understand what you mean :x

      So you pay 21% taxes and they pay you 30% of it back?

      what is your tax bracket, i mean the annual income sir if I may ask for the 21% ?
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      • Profile picture of the author Angle Warrior
        Originally Posted by Joshua P View Post

        "Canada my income is taxed 21% and I get a annual return of about of about 30% of that"

        Well I don't understand what you mean :x

        So you pay 21% taxes and they pay you 30% of it back?

        what is your tax bracket, i mean the annual income sir if I may ask for the 21% ?
        Let me help you with the math,

        Say I made $100 my tax deduction (21%) would be $21 then when I file my tax return I get at tax refund of $6.30 which is 30% of the $21

        As far as my income, I'm not rich but I'm not worried.
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  • Profile picture of the author thunderbird
    Canada, like everywhere else in the world, has all sorts of tax loopholes that big corporations effectively exploit. When common folk try to use the same loopholes, they are closed right fast (eg getting "fair market value" write-offs on items given to charities)
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    • Profile picture of the author Joshua P
      Originally Posted by thunderbird View Post

      Canada, like everywhere else in the world, has all sorts of tax loopholes that big corporations effectively exploit. When common folk try to use the same loopholes, they are closed right fast (eg getting "fair market value" write-offs on items given to charities)
      Hey


      "When common folk try to use the same loopholes, they are closed right fast (eg getting "fair market value" write-offs on items given to charities)"


      Can you please elaborate sir?

      I really need some help as I'm thinking about relocating to canada...
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