Are Canadians Really Hard Hit with Taxes?
It seems like every time we turn around here in Canada that we are paying some sort of tax, and perhaps many of us feel like we are being taxed to death. Sometimes it doesn’t hurt to look at what the tax situation is like in other countries.
For some they are only interested in the personal tax, while others have to be concerned about this as well as corporate and payroll tax. So the tax rates for each of these has a substantial impact on them.
There are some big differences in the ways each countries handle their tax programs and rates. For Canada the personal tax rates can range from 0% up to 29% then there is Provincial tax on top of this as well as possibly surcharge taxes and health premium. Now if you compare this to China for example, the rate can range from 5% up to 45%., whereas Macedonia has a flat rate of 10%.
When you see that a country is offering a flat rate when it comes to personal income tax it may look like that is an ideal solution and really acts as an incentive for an individual to expand their income. It may not be realized that while the personal tax seems appealing that a country could have many other types of taxes that we as Canadians are not faced with.
Before deciding whether some other country offers much better tax obligations it is really important to look at the total tax picture of that particular place.
It is frustrating for Canadian tax payers because they often feel they are being double taxed with the Federal and Provincial tax system. This is why it is important to know where your specific tax dollars are really going. Each province gets a portion of tax money back from the Federal government according to the Province’s needs. You will often see your provincial politicians fighting with the federal government because they feel their province is not receiving their fair share. This is often the excuse for raising the provincial taxes.
The bottom line is as a tax payer you really can’t do much to change the government’s stance on the tax system. You can have some input during election times by knowing where your favourite politician stands regarding the tax system.
You best approach to making your tax situation easier to handle is by becoming tax savvy about the ways you can legally reduce your tax obligations, combined with taking advantage of any applicable tax incentives. This is best done by using the services of an accountant that is experienced in tax matters. This is a financial area where we really can help. Call us at 416-398-1700 to find out how.