Almost Half Goes to Tax

Without getting too detailed this is a tax breakdown for a reported annual income of $40,000 in BC, Canada:

  • Income tax – $5000
  • Canadian Pension Plan(money for old people right now(Ponzi scheme)) – $1800
  • Employment Insurance(in case I am out of a job and am eligible to collect) – $700

Total to government – $7500
Total leftover – $32,500

The first $10,000 is tax-free and the remaining $30,000 incurs a 25% tax(20% federal tax, 5% provincial tax).

That’s not entirely accurate since that’s just the money that is automatically taken from you. If you spend everything that you get leftover there is a 0 to 12% sales tax.

Most common examples:

0% – Healthier items at the grocery store
5% – Other grocery items and food at restaurants, gasoline.
12% – The great majority of transactions

If you purchase liquor from a store or a restaurant there is a 15% tax.

The amount of tax you pay can be largely dependent on your vices and lifestyle. A pack of 20 cigarettes will include a $4.78 tax(roughly half of total price).

There’s a $0.32 gas tax plus 5% sales tax for every litre of unleaded gasoline . The price per litre today is $1.35(taxes included). How much per gallon? Multiply by 3.78= $5.10.

The big one is if you own a home and have to pay property tax. You’ll likely be paying $2000 to $4000 a year.

There are other costs that aren’t labelled as a tax but in essence they are. A 15% cultural expectation tax(tipping) is expected at most restaurants. If your company doesn’t provide you free health insurance then a person of average income is required to pay roughly $50-75 a month for one person. If your annual income is less than $24,000 then it’s free.

If you are one of the many to have credit card debt then you have to pay about 20% a year in interest(we got you tax) on transactions that you have already paid sales tax on.

You can put your money in the bank and never spend it to avoid paying more taxes but one day you’ll pass the money on to a loved one who will spend it or if you don’t have anyone then the government will take it all. Either way they will get something sooner or later.

To avoid paying taxes where I live, the best route is to make less than $10,000 a year, eat only healthy food bought from the grocery store and buy through Craigslist.






8 comments on “Almost Half Goes to Tax

  1. You must have put some time and effort into this one. I did something similar for a local newspaper many years ago. It took lots of time and generated almost no interest. Canada is different from the US in important ways, such as having a generally pacifist government I can find little to like about how the US government uses the taxes it extorts. The more I read about US history, the more horrified I become.

    Liked by 1 person

    • MrJohnson says:

      There was some research put into the post but it’s amazing how quick and easy it is to find what you want. I always knew about all the taxes but it just hit me yesterday how much of every dollar earned goes to the government or to some other extortion.

      Politically and culturally, I find Canada to be somewhere in between America and Europe. I think I would like living in western Europe. If I had no job there I could drink inexpensive high quality wine every day. I kind of like the large bodies of water though that provide a buffer from the rest of the world.

      Liked by 1 person

  2. Here in the UK were allowed up to £11,500 before tax . Then up to £45,000 is taxable by 20%. However there are other costs national insurance (like a state pension) a few hundred a year, council tax £1500 a house per year (even if renting), cars are heavily taxed, public transport is expensive, I will have to work this out and figure out if it is ever reasonable to make over £11,500 a year.


    • MrJohnson says:

      A British Pound would go a long way here. In some years it’s double our currency. Income tax seems fairly low for lower to average income earners there. The reasons to make more money tend to always be the same…you need more or you want more. Being self-employed has it’s benefits. You get to write everything off.


  3. Jeanne Felfe says:

    Just curious how good the health care us that costs $50-$75/person/month? Does that cover everything?


    • MrJohnson says:

      That’s a good question. Some say it has failed them but I think for most people it’s more than satisfactory. If there is a long waiting list for a surgery then it’s not so good.You’re covered for anything that would be considered to greatly affect your life(broken arm, flesh eating disease, cancer, raccoon bit off your ear, etc). Doctor’s visits, ambulance, hospital stays are covered. Prescription drugs aren’t. Cosmetic issues aren’t covered. Many big employers offer an extended health insurance plan for very cheap.


    • MrJohnson says:

      It doesn’t matter how much you pay, it’s all the same service. How much you pay is dependent on how much you earn.


      • Jeanne Felfe says:

        And that is a huge difference between you and the USA. Here a person can spend hundreds a month, if not more and still have high deductibles and co-pays.


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