ZuoTi.Pro
Question

4.The media often claims that high-income Canadians pay the same or lower taxes than low-income Canadians....

4.The media often claims that high-income Canadians pay the same or lower taxes than low-income Canadians. Is this a valid claim? Why or why not? Compare a Canadian earning $40,000 per year with a Canadian earning$80,000 per year. Would the higher-income Canadian pay the same amount of tax? Twice as much tax? Or more than twice as much tax? Explain. Explain why marginal tax rates in Canada are higher than average tax rates.

Use the personal opinion to answer，thanks.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

For a Canadian earning $40000 per year,Marginal tax rate would be 15%

For a Canadian earning more than $40000 to $80000,Marginal tax rate would be 20.5%

On $40000- taxable income = 15% of 40000 = 6000

Average tax rate = tax/taxable income = 6000/40000 = 15%

On $80000- taxable income = 15% of 40000+ 20.5% of (80000-40000) = 6000+8200 = 14200

Average tax rate = 14200/80000 = 17.75%

Therefore the Canadian earning more than $40000 is paying more than the person earning $40000 which is more than double.

0 0
Add a comment
Know the answer?
Add Answer to:
4.The media often claims that high-income Canadians pay the same or lower taxes than low-income Canadians....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Federal Income Taxes Individuals and firms pay out a significant portion of their income as taxes,...

    Federal Income Taxes Individuals and firms pay out a significant portion of their income as taxes, so taxes are important in both personal and corporate decisions. Our tax system is progressive. Individual Individuals pay taxes on wages, on investment income, and on the profits of proprietorships and partnerships. Taxable income is defined as gross income less a set of exemptions and deductions. In 2013, the personal exemption is $3,900 per person. A capital gain (loss) is the profit (loss) from...

  • Federal Income Taxes Individuals and firms pay out a significant portion of their income as taxes,...

    Federal Income Taxes Individuals and firms pay out a significant portion of their income as taxes, so taxes are important in both personal and corporate decisions. Our tax system is progressive. Individual Individuals pay taxes on wages, on investment income, and on the profits of proprietorships and partnerships. Taxable income is defined as gross income less a set of exemptions and deductions. In 2013, the personal exemption is $3,900 per person. A capital gain (loss) is the profit (loss) from...

  • questions 1-4 please 1. Why do callable bonds usually pay a higher coupon rate than noncallable...

    questions 1-4 please 1. Why do callable bonds usually pay a higher coupon rate than noncallable bonds? A. To compensate investors for their extra tax liability B. Because callable bonds have greater default risk than noncallable C. To compensate investors who might suffer a loss as a result of their bonds being called D. To comply with SEC regulations E. None of the above 2. You own a convertible bond issued by MJ9 Corporation that can be exchanged for 60...

  • Canadian Income Tax

    HAPPY FEET INCORPORATED Happy Feet Incorporated (HFI) is a small publicly-listed Canadian company that manufactures high quality fashion footwear in Dundas, Ontario. The company prides itself and has been built on being 100% Canadian. The entire manufacturing process is located in Canada. HFI has different lines of shoes for men, women, and children respectively. The market and environment that HFI operated in has changed significantly over the last ten years. Lower operating costs overseas, and changing regulations have allowed foreign companies to...

  • 6. Stock repurchases Companies with excess cash often employ share repurchase plans in place of or...

    6. Stock repurchases Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their holdings by selling their stock to the issuing company and earning from capital gains. Consider the case of St. Sebastian Company: St. Sebastian Company has forecasted a net income of $5,300,000 for this year. Its common stock currently trades at $21 per share, and the company currently has 830,000 shares of common...

  • 1. Why do callable bonds usually pay a higher coupon rate than noncallable bonds? A. To...

    1. Why do callable bonds usually pay a higher coupon rate than noncallable bonds? A. To compensate investors for their extra tax liability B. Because callable bonds have greater default risk than noncallable C. To compensate investors who might suffer a loss as a result of their bonds being called D. To comply with SEC regulations E. None of the above 2. You own a convertible bond issued by MJ9 Corporation that can be exchanged for 60 shares of the...

  • Scenario: Disability Insurance Claims Handling at InsureIT We consider the following business pro...

    Scenario: Disability Insurance Claims Handling at InsureIT We consider the following business process for handling insurance claims for disability insurance[1] at an insurance company InsureIT. The process starts when a customer lodges a disability claim. To do so, the customer fills in a form including a 2-page questionnaire describing the disability. The customer can submit the form physically at one of the branches of InsureIT, by postal mail, fax or simply via e-mail (digitally-signed document). When a claim is received,...

  • BASE CASE CHANGE SCENARIO 1 CHANGE SCENARIO 2 United States 500,000 500,000 500,000 Canada 500,000 550,000...

    BASE CASE CHANGE SCENARIO 1 CHANGE SCENARIO 2 United States 500,000 500,000 500,000 Canada 500,000 550,000 400,000 Mexico 300,000 330,000 240,000 COST OF GOODS SOLD 1,300,000 1,380,000 1,140,000 Price paid per gallon $1.30 $1.38 $1.14 Selling price per gallon (USD) $1.50 $1.55 $1.20 Revenue $1,500,000 $1,550,000 $1,220,000 Cost of goods sold (1,300,000) (1,380,000) (1,140,000) Gross profit 200,000 170,000 80,000 SG&A (50,000) (50,000) (50,000) Operating profit 150,000 120,000 30,000 Interest expense (80,000) (80,000) (60,000) Pre-tax income 70,000 40,000 (30,000) Tax (28,000)...

  • 1. Suppose a person lives for two periods (working life and retirement) earning $30,000 in income...

    1. Suppose a person lives for two periods (working life and retirement) earning $30,000 in income in his working life, during which he consumes or saves for period 2. What is saved earns interest of 5% per year. a. Draw this person’s intertemporal budget constraint. b. On the same graph, draw this person’s intertemporal budget constraint if the government taxes interest at 30%. c. Suppose the government increases the tax rate on interest earned and this person saves more. What...

  • 1. Why is growing the number of users such an important metric for social media companies?...

    1. Why is growing the number of users such an important metric for social media companies? How does Metcalfe’s Law relate to the profitability of social media companies? 2. Most social media companies rely on ad revenue as their main source of income. What are other ways that LinkedIn generates income? Why is it important for a company to have multiple ways of generating income? 3.Why do recruiters and job seekers like LinkedIn? Explain why an employer may dislike LinkedIn....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT