Do You Realize You Could Be Contributing to Your Health Care Via Taxes?
Sometimes it seems like we pay so many different forms of taxes that rather than try to determine how our tax payments are allocated, we just look at the lump sum as tax in general. In general we do know that a portion of whatever we pay in the year for our tax account is for Federal use and a portion is for Provincial use. What you may not realize is that lumped into your tax payment you may also have contributed to the Ontario Health Care Premium. So if you are under the assumption that health care is totally free in Canada you may be wrong.
A lot of people have professionals like an accountant do their tax return for them. Then once this is completed this expert will tell the client that they either owe money to the tax department or they may be getting money back. Many taxpayers don’t take the time to go over their tax return to see how the figures were arrived at, they just want to get it done and over with.
Currently, if an individual makes over $20,000. they are expected to pay a health care premium based on a specific rate according to their income. For those that are working this amount is deducted from their pay, but for pensioners who do not have taxes deducted at the source then it is collected when they complete their tax return.
With the ready access to medical care, most tax payers really don’t mind paying something towards their health costs provided the quality of care is not going to be restricted. Although when one looks at the pay scale rates for the Health Care Premium, there doesn’t seem to be much equality.
For example, an individual who has taxable income over $20,000, at the current rate will have to pay $60. for the year, but it you make $2,000 more than that your health care premium doubles to $120. Where it really seems to get unfair is the max. amount which is when the income is over $200,600. is at $900. In reality it would seem that there is far less of a financial burden on someone paying $900. when their income is this high compared to someone having to pay $120. when their taxable income is limited to $22,000.
Also, many have noticed that there have been some medical services that are no longer free, while others have found that perhaps their needed medications are not covered.
The conclusion is if you are thinking that you are not contributing to your health care, it may very well be that you are through your end tax obligation. It also shows that you really should know where your tax dollars are going at the end of the year.