Totally Spent - (This recession will be for real!)

[Mr. P]

Interesting topic Mr. P. I belong to an online DVD rental club - and just got notification that they have shipped Office Space - I should have it on Monday. Now I'm really looking forward to watching it.

As for the US economy and tax breaks, what amount of taxes does the average citizen pay?

My husband and I are both blue collar workers. He makes about $4/hour more than I do. He pays 34% payroll deductions, I pay 29%.
On purchases, we pay 5% Goods and Services tax, and 6% provincial sales tax.

In 2007 June 20th was Canada's tax free day. That means if we had to pay all of our taxes for a year upfront, it would take until the 20th of June.

How does this compare to the US and other countries?

Office Space is not slapstick comedy...it is very subtle and dry humor in many places...but the characters are so unique and spot on for so many in the corporate world in the US that they are just memorable. I have felt like Peter, Michael, Samir and even Milton at many times in my white collar life. Enjoy!

Not sure of the figures at this point...but can you explain more about Canada's system? Is it based off total income? Flat tax?

Does the taxes you pay help the society? I know you guys have the universal healthcare system up there...any other programs that benefit the populace as a whole? Do you get tax returns at all?

[Constance963]

I love the avatar Mr. P!!

Best line ever that just sums everything up:
"It's not that I'm lazy, it's that I just don't care"



One of my all-time favorite movies.

[Mr. P]

I love the avatar Mr. P!!

Best line ever that just sums everything up:
"It's not that I'm lazy, it's that I just don't care"

That is one of my favorite lines!

I also like "I can set the place on fire" for dealing with frustration. lol

Damn it feels good to be a gangsta!



Mr. P.

[jales4]

Not sure of the figures at this point...but can you explain more about Canada's system? Is it based off total income? Flat tax?

Does the taxes you pay help the society? I know you guys have the universal healthcare system up there...any other programs that benefit the populace as a whole? Do you get tax returns at all?

Our payroll taxes are figured off of our income. The more you make the more you pay.

We file income tax returns once a year. If we didn't pay enough taxes we must submit a payment. If we have deductions (registered retirement savings plans, medical and dental fees, business losses, vehicle expenses, etc), then we may get a refund cheque.

Our Goods and Services Tax (GST) is paid on each applicable purchase. Haircuts, movies, vehicles, lots of groceries, etc. The store remits the GST collected to the government. The government then sends out GST rebates to low-income people, four times per year. Businesses can also apply for a GST rebate for goods purchased for the purpose of making money.

The whole thing is a huge beauracracy that sometimes seems to cost more to implement than it raises.

Our provincial sales tax is set at a province by province basis (Alberta doesn't have one). This is paid at the cash register when you purchase items.

It was difficult to teach the kids when they first got allowance to factor in a further 11% taxes. Retailers do not put the final price on the sticker - just their price.

Our taxes go for our medical system, road repair and maintenance, social services (welfare), child protection, courts and prisons, etc....

All this adds up - until we have to work until June 20th before we've paid our taxes for the year.

I'd really like to hear from others on what taxes/economy is like where they live.

Jan.

[Constance963]

That is one of my favorite lines!

I also like "I can set the place on fire" for dealing with frustration. lol

Damn it feels good to be a gangsta!



Mr. P.

LOL! Me too. And the best is that our printer at work actuaully says "PC Load Letter" when it is out of paper so you can guess what my response to that is.....

Ok, I'll stop with the Office Space stuff and let this thread get back on track

[LanDroid]

U.S. Tax Freedom Day was April 30 last year. So if Freedom Days are calculated the same way, it would appear U.S. taxes are lower than Canada.

http://www.taxfoundation.org/taxfreedomday/

[jales4]

U.S. Tax Freedom Day was April 30 last year. So if Freedom Days are calculated the same way, it would appear U.S. taxes are lower than Canada.

That is a very significant difference - about three pay cheques.
For a double income family six pay cheques.

The American working class has always seemed better off than the Canadian working class - perhaps this explains it.

Our tax system covers medical though - what does the average American pay for medical services per year? Do most blue collar workers get coverage through work, and therefore not have to pay?

Jan.

[Mr. P]

U.S. Tax Freedom Day was April 30 last year. So if Freedom Days are calculated the same way, it would appear U.S. taxes are lower than Canada.

That is a very significant difference - about three pay cheques.
For a double income family six pay cheques.

The American working class has always seemed better off than the Canadian working class - perhaps this explains it.

Our tax system covers medical though - what does the average American pay for medical services per year? Do most blue collar workers get coverage through work, and therefore not have to pay?

Jan.

Health insurance is in no way free here. This is a significant difference I think. I sell insurance and can tell you that the rates for coverage for a business is high, they business does not have to offer it and when they do they do not have to pay any portion of it aside from like 10% of the employee. So if you want a family plan, you have to pay. Premiums for Employee only can run upwards of $200 plus per month. Parent/Child $300-$400 per month and family plans I have seen run upwards of $800-$1200 per month and it is always increasing. Per month. So that means $1200 a year for a single and $14,000 a year for a family. Or NO health insurance at all, which many people opt for. Of course, these are just averages and guesstimates on my part. I stopped selling Health Insurance because I felt horrible telling people they had to pay that much for coverage. And if you are NOT part of an employer group plan, the individual options are the same or worse as above with even worse coverage options available.

And the coverage you are getting these days is getting poorer and poorer. Highre co-pays, higher Rx Co Pays, In-patient deductibles increasing. Co-insurance percentages increasing to the detriment of the covered person.

So I think that offsets the extra taxes you pay in Canada. I am not boasting or saying 'nea-nea'...lol

Mr. P.

[jales4]

Hi Mr. P.

You are correct - the high cost of medical insurance does balance the tax difference out.

So I'm wondering then, why do most blue collar workers in the US seem so much better off than blue collar workers in other nations?

About the medical coverage - is there a low-income threshold where the government kicks in with partial or full coverage?

I heard somewhere that a caesarian section with a three day hospital stay costs around $27,000. Do you think that figure is close?

Jan.

[Mr. P]

Hi Mr. P.

You are correct - the high cost of medical insurance does balance the tax difference out.

So I'm wondering then, why do most blue collar workers in the US seem so much better off than blue collar workers in other nations?

About the medical coverage - is there a low-income threshold where the government kicks in with partial or full coverage?

I heard somewhere that a caesarian section with a three day hospital stay costs around $27,000. Do you think that figure is close?

Jan.

Not sure about the C-Section cost...I am fortunate enough to have health insurance, so i deal with covered costs.

As for why American BC workers seem better off...how much do Canadians rely on credit as primary income instead of what it really is? The debt in this country is out of control. Many people abuse it and many corporations extend credit when they probably should'nt. Of course, America has long been a prosperous nation as well...but I see that coming to an end. We do not innovate as much as we used to, we do not produce many goods anymore and I see a lot of influx from other nations doing alot of the work in the medical and technology field here. I expect India to be a super power in the future...many Indian people are coming here and becoming doctors and tech gurus...they are a rising force IMO.

Our economy is in trouble, and that is partly because Americans are led to think that we 'deserve' anything we want and that leads people to spend money that is just not there and then go into debt, pay high credit bills and then refrain from spending because eventually the credit runs out. There is more to it of course, but that kind of situation does not help.

But hey, I am no economist.

Mr. P.