Tilted Forum Project Discussion Community - View Single Post - How do you feel about mandatory health insurance?

Martian · 01-20-2008, 01:01 AM

You're both wrong. Sort of.

Ustwo is right in that the rates quoted on wikipedia above aren't the whole picture. Those are only federal rates and just the income tax. We also pay provincial rates (which, unsurprisingly, vary by province) and sales tax on most goods.

From the Canada Revenue Agency Website:

Quote:

Originally Posted by CRA

Federal tax rates for 2008 are:

* 15% on the first $37,885 of taxable income, +
* 22% on the next $37,884 of taxable income (on the portion of taxable income between $37,885 and $75,769), +
* 26% on the next $47,415 of taxable income (on the portion of taxable income between $75,769 and $123,184), +
* 29% of taxable income over $123,184.

...

Provincial/Territorial tax rates for 2008

Newfoundland and Labrador 8.7% on the first $30,215 of taxable income, +
13.8% on the next $30,214, +
17.26% on the amount over $60,429

Prince Edward Island 9.8% on the first $31,984 of taxable income, +
13.8% on the next $31,985, +
16.7% on the amount over $63,969

Nova Scotia 8.79% on the first $29,590 of taxable income, +
14.95% on the next $29,590, +
16.67% on the next $33,820 +
17.5% on the amount over $93,000

New Brunswick 10.12% on the first $34,836 of taxable income, +
15.48% on the next $34,837, +
16.8% on the next $43,600, +
17.95% on the amount over $113,273

Ontario 6.05% on the first $36,020 of taxable income, +
9.15% on the next $36,021, +
11.16% on the amount over $72,041

Manitoba 10.9% on the first $30,544 of taxable income, +
12.75% on the next $35,456, +
17.4% on the amount over $66,000

Saskatchewan 11% on the first $39,135 of taxable income, +
13% on the next $72,679, +
15% on the amount over $111,814

Alberta 10% of taxable income

British Columbia 5.35% on the first $35,016 of taxable income, +
8.15% on the next $35,017, +
10.5% on the next $10,373, +
12.29% on the next $17,230, +
14.7% on the amount over $97,636

Yukon 7.04% on the first $37,885 of taxable income, +
9.68% on the next $37,884, +
11.44% on the next $47,415, +
12.76% on the amount over $123,184

Northwest Territories 5.9% on the first $35,986 of taxable income, +
8.6% on the next $35,987, +
12.2% on the next $45,038, +
14.05% on the amount over $117,011

Nunavut 4% on the first $37,885 of taxable income, +
7% on the next $37,884, +
9% on the next $47,415, +
11.5% on the amount over $123,184

The highest rate of income tax is in Manitoba, where one might pay (29% +17.4%) or 46.4% total income tax. Bear in mind, however, that this rate applies only to income in excess of $123 184. Thus, if I made $200 000 this year, I'd pay the top rate on ~$77 000 of that, which if I lived in Manitoba would be 46.4%. The rest of it I would pay according to the sliding scale, meaning that in the end I would pay significantly less than 46% to income tax.

The other major tax is sales tax, which also varies by province. The federal rate is 5%, where here in Ontario we pay 8%. If we therefore assume that as an Ontarian I make less than $36 000 per year and that all of my income goes towards taxable goods and therefore I pay full sales tax on it I pay 34.5% in total taxes. The reality is different, of course; services such as phone and cable are taxable, but rent isn't and neither, as far as I know, is third party insurance (home, auto, etc). The reality is that I pay significantly less than that in taxes (and this isn't even taking into account any tax credits I may qualify for; for example, rent counts towards a credit on income tax as well as not being applicable for sales tax). So I have no idea where 48% comes from.

Our healthcare system is far from perfect and I'll be the first to admit it; on the other hand, it's far from going bankrupt, despite what CBS tells you. Occasionally things ged backlogged and sometimes mistakes are made. Even still, wait times aren't all that significant; usually tests and services can be provided in a timely manner and it's exceedingly rare to hear of a high priority case that doesn't get treated in a reasonable timeframe.

Canadians do have private healthcare to an extent, as the article noted. I have additional private insurance that covers dental, eyecare and prescriptions that OHIP doesn't cover for me. For 100% vision coverage, 80% dental coverage and a flat $13 co-pay on all of my prescriptions (some of which run over $100), I pay a princely sum of $9 per week. Do you think I could get such high quality coverage for less than $500/year if OHIP didn't cover much of the essential services, particularly when one considers that I have a chronic condition?

In the end, I reckon you lot will do what you want. If privatized health care is really working out for you, than good on ya. I'll take my free commie hospitals, thanks.