Government hates single income families (Part 3)
OK, so we now know how much a single income family has to pay in taxes approximately (28% of there income and that is before you think about GST, PST, Property Taxes, and living expenses), pretty gross huh?
Now let us look at a family with 2 income earners both making $50,000 a year (which adds up to the exact same amount as our single income earner). Same assumptions about CPP, EI, etc.,
So let’s look at the table NOW for Spouse #1:
| Tax Line Description | Line # | Amount |
| Employment Income | 101 | $50,000 |
| Total Net Income | 236 | $50,000 |
| Total Taxable Income | 260 | $50,000 |
| Net Federal Tax | 420 | $7,201 |
| Provincial Tax | 428 | $3,196 |
| Total Tax Payable | 485 | $10,397 |
So, thanks to our tax system, Spouse #2’s income tax looks the same so the total tax payable for this couple would be: $10,397 * 2 = $20,794.00
Interesting eh? So, let’s compare with our single income family which pays : $28218.62
A difference of: $7424.00 (approximately)
Tomorrow, my commentary on this, and a possible solution, which I will borrow from our U.S. cousins.
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April 29th, 2005 at 5:05 AM
Are you crazy? Why are you posting youe numbers? That’s not safe…
April 29th, 2005 at 1:07 PM
Those aren’t MY numbers, they are theoretical numbers.
c8j