What
We Currently Pay In TAXES:
In
Canada we as Canadian citizens pay over 75% in taxes. These taxes are taking up large chunks of the average persons
income. With the increase in taxes
every year it seems that there is no end in sight, you cannot stop paying taxes,
at the same point there is the ability to reduce the amount of taxes that you
have to pay. So let’s understand
what kind of taxes have to be paid.
To
begin the most noticeable of all taxes is the income tax that comes off 100%
of all employees’ checks. Depending
on how much money you have made you will be paying a percentage of your income
to the government in three main types of deductions off your check.
The first one is Canadian pension plan, now for all those who are under
the age of 40 you are looking at the fact that you will never get a chance to
utilize your CPP contributions, as it will have dried out by the time you reach
retirement age. The second is employment insurance, now it is said that most
Canadians will never use this employment insurance. Finally, the largest of all the deductions is the income tax
deduction that is based on the amount of money that you make during a one-year
term. Below is a chart of
approximately how much you would get deducted if you were a regular employee or
have earned interest from savings accounts or investment bonds:
|
Annual
Income (Gross) |
$30,755 to $39,000 |
$39,000 to $61,509 |
$61,510 to $100,000 |
$100,001 and over |
|
Salary
& Earned Interest Combined |
36.7% |
42.4% |
45.7% |
48.6% |
Now many Canadians recognize that income tax can be
very high, and when handled properly can be greatly reduced through the usage of
RRSP, interest charges from outstanding loans, and many other ways also.
But what two thirds of Canadians do not know is that income tax the
majority of the time is the lowest taxes that they pay; realize their largest
annual tax bill comes about in hidden taxes. As
large as it is most people do not even know they have paid for these following
taxes:
1.
Federal income and estate taxes
2.
Provincial income taxes
a.
Basic Tax
b.
Flat Tax
c.
Deficit – Reduction Tax
3.
Corporate Income Taxes
4.
Payroll Taxes
5.
G.S.T.
6.
Provincial Sales Taxes
7.
Real Estate Property Taxes
8.
Personal Taxes
9.
Business Taxes
10.
Educational Taxes
11.
Fuel Taxes
12.
Import Duty Taxes
13.
Sin Taxes for items such as Liquor, cigarettes, etc.
14.
Travel Taxes for hotels, airplane, taxi, etc.
15.
Excise Taxes
16.
Transportation Taxes
17.
Utility Surcharge Taxes
18.
Environmental Levy Taxes
19.
Air Travelers Security Taxes
20.
Entertainment Taxes
As you go down the list you may think that some of
these do not affect you but do not be fooled, this is how the government has
gouged you for the past 40 plus years. Since
1961 the average Canadian has had an increase of 1 351% increase in the amount
of taxes that they have paid. Now, the key for any Canadian is to reduce the
amount of taxes that we pay to the government and keep as much money in our own
pockets as possible.