rickyp wrote:You cherry picked one particular tax bracket and dismissed the benefits available that offset costs...
And its not a fact since you never bothered to look at the averages across the 64 jurisdictions with all of the different rates and brackets. Some truth.
That's a very duplicitous comment considering that you started this with writing:
Tax rates for poor Canadians are less than Americans
You've provided no support for your statement, and now you require that I look at 64 jurisdictions to prove your wrong. (BTW there are more than 64 tax jurisdictions between the 2 countries.)
But I will take the bait. It's clear that you are duplicitous, now I will show that you are wrong.
Let's use a family of 4 who makes $30,000 USD per year in Mass which is considered to be a high tax state. Their tax bite
Federal Income Taxes $0 (deduction of $24,800)The rest is at 10% but the earned income tax credit is $5,920. So the $520 of tax would net a refund of $5,400. There is also a child tax credit, this person would actually receive an additional $1,400 back from the government for the child tax credit.
FICA (social security and Medicare) = 7.62%, or $2,295. They are still ahead because of the tax credits above. My understand is that net between these two taxes they are receiving money back from the government (although I want to review the technicalities on how much they receive back.)
This family is paying negative federal tax.
Unemployment tax: $0, but you have it in Canada.
Mass. Family Leave Act - .38% or $114.
MA income tax $30,000 - $12,800 deductions = $17,200 taxable income X 5% tax rate = 860. However, there is a MA earned income tax credit = to 30% of the federal amount, so this MA tax would be wiped out.
If the person drives, they will pay gas taxes, but those would be lower than the gas taxes in Canada.
So, in the US, a low income person basically gets money back from the government and pays negative taxes because of the earned income tax credit.
That's why your statement that in Canada they pay lower taxes than the US is preposterous. Pick a comparable jurisdiction and prove me wrong or stop with your incessant untruths and mis directions.