may150080

could anybody tell me the  difference for after-tax income between 30,000/year and 60,000/year.  I heard if a person earns 60,000/year, he has to pay half of his income for tax; and if a person earns only 30,000/year, the income after tax will also be around 2,000/month, then what's the use for earning 60,000/year?  Is there any way to reduce tax for the 60,000/year person?  Thanks a lot!

圆明园

"pay half of his income" is very loose.
you need to know tax bracket to understand what he is talking about, for example, the federal tax system has 35,000, 70,000 and 1xx,xxx with tax rate of 16% 22% and 26%, add the provincial around 20%, a person who is in a higher tax bracket will roughly pay half of his extra erning as income tax, this is sometimes called "marginal rate", compare to average rate which is lower.
60,000 earner pay his first 30,000 the same rate as 30,000 earner, the rest you do the math.  assume "pay half of his income" is true, he will have 15,000 more, it is not as good as 30,000 but it basically is his motivation to earn more. besides, it sounds better, (more impressive to certain people)
so, 15,000 is the answer to your question, roughly.
to be exact, we will do it step by step
1. fed, 16% for under 35,000, so 35,000-30000 = 5000, 5000x16%= 800,
22% between 35,000 and 70,000, 60,000-35,000 = 25,000, 25,000x22% = 5,500
fed tax is 5,500+800 = 6,300

2. I don't have exact number, let's say it is 7,300
(go to quebec tax form, work chart 401, find exact number)

3. there is a refundable quebec abatement at 16%, you will get back 16% x 6300=1008

total tax 6300+7300-1008=12592
the difference is 30000-12592=17408


tax has 2 purposes, 1 is to collect money to pay the bill, the government has bills to pay too, 2 is to act as direction, to telll people what to do and how to spend, you asked, why should I work more to pay more? if your answer is, let's relax, enjoy what i have than it is good, you don't need 60,000, you don't need to work that hard, other people need a chance to work too.  Or you can use your hard earn money to pay some political parties, to give to charity, to make your life more meaningful, the government encourage that too, you can deduct your tax by giving.

at the end, it doesn't matter you make 30,000 or 60,000, if you are happy.

may150080

I don't quite follow your explanation.  When doing the calculation, why don't you just calculate as 35,000*16% + 25,000*22% + 7300 -1008 = 17,392 (the total tax need to pay as a $60,000 earner)?  Why did you just calculate the 500*16% part, and then later deducted from the 30,000 for the total?  Anyway, I am still confused, roughly how much a 60,000 earner have to pay for the total tax (federal and provincial together), around 17,000?  How about a $30,000 earner, around $4,800?  Thanks again!

lvr_dd

加拿大单身的人税是比较重，而且享受不到什么福利．对单身来说，6万的收入最后的月收入大致在3000左右，而3万是2000．看起来差别不大，但是在这里生活一段时间以后你会发现2000的月收入和3000的月收入生活质量上是不可以比的，绝对不是国内2000和3000人民币月收入的区别．这是因为这里的基本开销较大，而国内所谓的高消费在这里反而相对不贵．以为１０００／月的生活基本开销来算，２０００就只剩１０００了，而３０００可以剩２０００来额外的开销，你就会有余钱买喜欢的东西，旅游，娱乐等等，自然生活质量大大提高．

而且６万有更多的省税的办法．就比如买rrsp就可以比３万的多买一倍,省的税就可观了．所以说６万和３万的区别还是很大的．可以这么说，年收入６万可以进入这里的中等收入阶层，而３万则仍然是这里的低收入阶层．

圆明园

because we are only interested in the difference, besides, we don't know what is the situation of indivisuals.
my calculation covers all, regardless your tax situation, for example, depend children, child care expense, interest on student loan, charity donnation, ...
because all the deductions would go against the lower part of your earnings not the upper, (only when you buy RRSP, it would go against your upper part of earning, that is lvd_dd mentioned in his post)

35,000*16% + 25,000*22% + 7300 -1008 = 17,392
is not the total tax for 60,000 earner
why? i will give your answer later

圆明园

i said in a previous post the difference between 30,000 and 60,000 is 17,xxx,  which is not accurate.
1.
i overlooked some tax benifit based on family income, for example, property tax, medical expense, child care expense, GST/QST credit, if you consider those, 17,xxx will not be a good number, but i can't tell exactly.  when your income reach to a certain level, you lose some of tax benifit.
2.
I forgot CPP/QPP and EI payment, those 2 accounted about 2,500 if you pay full amount, but later on, they can be considered as deducables

Now, it is time ti reveal our answer
why you can't calculate total income tax as following for income of 60,000?
35,000*16% + 25,000*22% + 7300 -1008 = 17,392

because,
7,300 does not take considerration of provincial tax before 35,000, i don't know what is the breakdown, i think it is 19% before 30,000 or 35,000, so 35,000X19% = 6,650, once you add this 6,650, tax payable becomes 24,000, however, both federal and provincial has a basic amount to calculate deductables, again I don't have the number by heart, the ball park number are:
1.Fed 6,000X16% = 960
2.Prov 9,000X19% = 1710
960+1710 = 2670

24,000-2670 = 21,xxx this is our final number, you will have 41,000 left in your pocket.  remember there are many many variables, the number we have reached is very rough. I am not an accountant, don't take my words to court.

back to your original question, is there a big difference? I say, NO.  think about it, money is shit, it creates conflicts between friends and families, and nations.  people worry about it for nothing.  It takes the joy of life away from people.  I digress.

thank you.