Rorinthas wrote:
on a curious note. What kind of taxation model does Canada have? I know consumption taxes are huge there, but what about income. Is it flater than the American system?
Not really more flat, no.
Canadian Federal income tax rates are:
•15% on the first $40,970 of taxable income, +
•22% on the next $40,971 of taxable income (on the portion of taxable income between $40,970 and $81,941), +
•26% on the next $45,080 of taxable income (on the portion of taxable income between $81,941 and $127,021), +
•29% of taxable income over $127,021.
Note that the tax rate is only charged on the amount in that bracket. So if I make $150,000, I pay 15% on the first 41k, 22% on the next 41k, 26% on the next 45k, and 29% on any amounts over 127k--so you cannot bring home less if you jump a tax bracket.
"Taxable income" is basically defined as amounts made over $10,000ish after any deductions. (So that first $10,000 is tax free, for everybody. It doesn't count as taxable income. If deductions - such as retirement plan or charity contributions, etc. - push you below $10,000, you pay no tax at all.)
Provinces may apply additional income tax. In Ontario, the combined federal and provincial top tax raket is about 40% even (29% federal, 11% provincial), on amounts over $127,021.
Other differences: Spousal incomes are not added together. If I make 50k and my husband makes 60k, we do not pay tax as if we made 110k. We pay it separately. If there are any deductions (such as for dependants,) you can choose which person claims them.
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