many Canadians have a common belief that "Canada high taxes are fiercer than tigers, especially the high income people, many Canadians are Canadians think intuitively than Americans pay much more tax - Canada is " welfare state " tax, certainly more!. What is the real answer? Much more complicated than you think. Statistical agencies in these two countries to collect the average value of the issue of income tax, if the comparison of these two figures like a hockey player's statistics and a comparison of a basketball player. Its figures are based on a different answer to the premise, and include different parts.
1. first of all, the income tax levied by the federal government of the two countries. in the United States, the annual income tax rate of $9275 is very low, only 10%; but once the income to the $37650, it is already 25% of the tax rate, although this income is not much. The highest income earners, the income tax rate is nearly 40%.
in Canada, as long as the income below $45282, are calculated in accordance with the minimum 15% tax rates. For the middle class income lower than $90563, the latest tax rate is 20.5%, compared to income in the United States $37650 to $91150 middle class tax rate (25%) to be low a lot of it! Even for 90 thousand to 140 thousand of the income of Canadians, the federal tax rate is only 26%, while the income is higher than more than 90 thousand of Americans, the federal tax rate is 28%! While the highest income tax is high, such as annual income of more than 200 thousand Canadians, the tax rate is 33%, regardless of your income high, also is the 33%; but the high income Americans, the annual income of 190 thousand to 410 thousand is 33%, more than 410 thousand and 5 of the income tax, to pay 39.6%. So it seems that, in fact, the federal income tax in all income groups, the United States is lower than the United states!
2. Province, state income taxes. Canada and the United States, in addition to the federal income tax, we have to pay taxes every year to the province or state tax. Because each province and state tax rates are not the same, and the United States there are 50 states, so it is difficult to fully compare. But we took several areas of most Chinese of the two countries as an example: for example, the Canadian province of Ontario, British Columbia, and the United States of New York and California.
annual income of 100 thousand of Canadians in the payment of net income after income tax: two levels of government in British Columbia, $76129 left; in Ontario, left $74797. The annual income of 100 thousand, the people of New York, in the payment of the two levels of government income after tax net income of only $68495, the annual income of 100 thousand people in California, in the two levels of government pay income tax only $67654.
however, there are 2 places in the United States, is the personal income tax paid at least, that is the coldest and hottest Alaska in California, Florida: the two states, no state income taxes. other tax incentives
3. in addition to the tax rate than Americans, Canadians can enjoy the tax relief, in fact, more than americans. Reported between the Canadians know that each of us has about $11000 of the federal exemptions, and $9000 provincial allowance. That is to say, when calculating the amount of tax you need to pay, it is the. The United States also have allowance, but they are divided into two kinds, one is called " personal, exemption" about 4000; also called a " standard, deduction" about 5600 numbers is much less than canada. In addition, although the Americans can enjoy 4000 " personal, exemption" but for the 5600 " standard, deduction" is to rely on charitable donations, your medical expenses to offset. In Canada, such spending can be another count, is each person in the personal tax exemption, can be added to the relief!
4. mortgage interest deduction
owner occupied housing from the Americans can enjoy the deduction from the housing mortgage interest, which is a Canadian failed to enjoy the tax concessions. But if you don't have your own house in the income of $82000 or more, the tax paid is far greater than that of the Canadians. 5. inheritance tax in Canada has no inheritance tax but has 1.5% of fee probate, while in the United States there are more than 40% of the estate tax.
this is the most happy tax benefit of Canadians. That is, Canadians want
more effectively than Americans to pass on their wealth to the next generation.
is really no more than do not know, just after the account, just know that the original Americans to pay taxes, than we have so much more! And, Americans who pay so much tax.To even the national health care are not.
so we are very fortunate as Canadians, we have to pay a lot less taxes and enjoy better benefits than Americans.
(this is for reference only and does not constitute a specific proposal)
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