Income Tax Rates

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A place for serious discussion on any non-religious topic

Income Tax Rates

Postby Pondero » December 10th, 2017, 11:49 am

In Ontario you pay a combined income tax rate with the federal government as follows. *these are just federal rates .the Ontario rates are in steps like the federal rates are much smaller. Not shown.
Federal tax rates for 2017
15% on the first $45,916 of taxable income, +
20.5% on the next $45,915 of taxable income (on the portion of taxable income over $45,916 up to $91,831), +
26% on the next $50,522 of taxable income (on the portion of taxable income over $91,831 up to $142,353), +
29% on the next $60,447 of taxable income (on the portion of taxable income over $142,353 up to $202,800), +
33% of taxable income over $202,800.

Well, I was having dinner with a relative on December 2nd who can be quite annoying.She earns a lot and was complaining because she pays a very high tax rate - so she says. Why am I being treated unfairly, why can't everyone pay the same rate of tax.I would still pay more because I earn more.
My response was " ..income redistribution". "Just because you had the brains to earn more doesn't mean you should pay less than your fair share."

As it was a birthday party dinner , I didn't press the point.But, look at it this way . In order to achieve the same amount of revenue as formally the federal government and the Ontario government would have to set a rate for all between 15% and 33% in order to achieve my relative's wish.
The consequences of such an act would be that poorer people would pay more tax than before as their rate was higher and the rich would pay less. (No income redistribution there,)
As I can assure you that there are more poor people than rich people , more people would suffer than before and that would be cruel, unfair and not necessary under the present system.

The way economics work is this .Without control by government, competitors would combine and form an oligopoly, and then human nature being what it is a monopoly.That would lead to poverty for the majority and great riches for the minority.
Legislation to curb price fixing and oligopolies is not perfect, governments (in the western world) know that and try to fix it. It is very difficult to stop and prove that large firm execs don't meet for lunch or at the golf course to fix prices for their mutual benefit instead of competing with each other (they prefer an oligopoly).
That is why income redistribution through taxation is vitally necessary .
In the United States they just pretend to do it .How else can you explain the number of billionaires in that country.


Finished - I hope!

No.*
If your mind is your brain and your brain is just material , would you rely on it?
John Lennox
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Re: Income Tax Rates

Postby Lyn » December 10th, 2017, 9:15 pm

Wow! Fascinating facts.
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Re: Income Tax Rates

Postby Pondero » December 20th, 2017, 3:49 pm

This is about the income tax I reported on my 2016 T1general return , not about rates- but close enough..
Yesterday I received a letter from the Canada Revenue Agency saying they could not reconcile my tax reported on line 437 with their tax statements. I started work last night immediately, and I have news for them. I can't reconcile it either.I continued work this morning .In the end I called an agent from CRA who says he has being doing the job a long time. Between us we figured out I had entered a Withrawal from my RIF twice instead of once. That accounted for the error.
So I admitted I made an error and sent a fax letter to them saying so.
End of story. I hope. :grin:
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Re: Income Tax Rates

Postby Pondero » December 22nd, 2017, 10:44 pm

I mentioned in an earlier post in this section how it is difficult to stop price fixing and eventually oligopolies from forming.

Well Loblaws where we shopped this morning admits price fixing on bread for 14 years.

https://www.ctvnews.ca/business/bread-p ... -1.3733293
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