Do other countries lose as much in personal taxes as Canadians do?

Question

Do other countries lose as much in personal taxes as Canadians do?

Answer 1

Comparison of personal Tax Rates around the world is difficult.  In some countries like canada, government sponsored national health care provision is paid for from taxation, while in other countries health care is normally paid for with private insurance.  And some countries have payroll taxes, while others do not.  In addition, the GST/VAT rates for goods and services vary.  The lists below give some raw indicators for personal tax rates:

Canada: 15-29% (federal), 4-17.95% (provincial)

Sweden: - 0 to 59%

Norway: 48%

USA: 0-35% (federal income), 0-10.3% (state income); 15.3% fed payroll tax

Answer 2

Tax rates vary widely from country to country.  In Kuwait, there is no taxation, for instance.  In other countries, there are much higher rates of tax than Canadians pay.  Rates also vary depending on total income, with some countries using a flatter tax scale (all income levels paying about the same percentage) while others have a much more progressive system, with higher incomes being nailed much harder than lower incomes.

Service levels often play into the mix, with countries with higher tax rates tending to have higher service levels, such as medical care, unemployment levels, sometime old age pensions at higher or lower levels, etc.

Answer 3

There are countries with higher tax rates.  Quebec has the highest taxes in North America.

Denmark has the highest income tax rate, with its top-taxed citizens paying 68% of their hard-earned crowns. The basic tax rate begins at 42%

But remember it's not just personal taxes you should be looking at there are also all of the other taxes we pay GST PST, Fuel Taxes, Sin Taxes, Poperty Taxes, School Taxes, the list is endless.

Answer 4

Canada falls at about the 33% variance for personal income tax rates in the world. In other words, 32% of the countries in the world have higher personal income taxes than Canada, and 67% of the countries of the world have lower personal income taxes than Canada. You must remember though that in Canada (in most provinces) you don't pay for healthcare coverage benefits. I recently had a surgical procedure that cost me absolutely nothing here last month and in the USA if I did not have health care insurance (paid for by myself), I would have paid about $ 14,000 for it !!

With respect to the G8 nations of the world, Canada now has the lowest Corporate income taxes though with the announcement of this past years budget, making Canada a favorable place for corporations to conduct business in the near to distant future :).

Canada has always taxed the personal income tax a little too high and has favored medium to large corporations by giving them some of the lowest tax rates in the world. That is why Canada is regarded as both a capitalistic and socialistic country, whereas the USA is capitalistic and countries like Holland are socialistic.

Answer 5

Canadians pay more in taxes, than some other countries, since we have a universal health care system.|This means you pay less , for example, the USA, but you would end up paying more for your health insurance and for any medical problems you experience. This is one of the great things about Canada. Also, if you win the lottery in Canada, you don't have to claim it as personal income and not pay taxes on it.

Pax Tecum, MT!

Answer 6

Not 100% sure this is true, but I've heard people in the UK pay more in taxes than Canadians do...

Answer 7

International tax rates are complicated.  Too many variables to be able to adequately compare one country to another.  There is no Income Tax in Bermuda -- there is also no health care unless you are employed, and a 3 bdrm house can cost $7500/month.  Imported goods carry a 25% levy.  Some people might say "I wish I lived in Bermuda so I didn't have to pay tax", but living in paradise has its price.

It is one of the world's biggest urban legends that Canadians pay grotesquely more taxes than other countries. Even Canadians believe it because that is what the media keeps telling everyone. Free health care = insanely high taxes. Not true, I say. Although I'd be happy to keep up the charade to kep certain people from migrating North.

Even if Canadians did pay slightly higher taxes, that cost would be offset by the security of having free health care, low crime rates, little gun violence, and living in a generally happy, easy going society.

Canadian Federal Tax Rates:

http://www.cra-arc.gc.ca/tx/ndvdls/fq/tx...

US Federal Tax Rates:

http://www.irs.gov/formspubs/article/0,,...

If you had $37k in Taxable Income, you'd pay $5550 in Canada and $4771-$5680 in the US depending on whether you were single/married, etc. So, if you're single, the US might be cheaper, but if you are married, Canada is suddenly quite a bargain.

Obviously, this only accounts for one type of tax. There are property taxes which will vary greatly from place to place; provincial income tax; goods and services tax; etc.

The question really is how does our tax rate relate to the Canadian quality of life? Are we getting good value for our tax dollars?  Remember than some of the Canadians quality of life has no price tag -- how do you put a value on feeling safe? Not worrying about getting sick? Being treated with respect regardless of race, colour or sexual orientation? Not dealing with insurance company paperwork and co-pays?