USA vs Canada - Minimum Wage...

[declansdad]

8% is your provincial rate up to $29,000.00 - you then have to add the federal rate of 15% to that, so being that you are in Nova Scotia, you pay 23% in taxes. I pay 26% federal (2nd highest tax bracekt) + 11.16% for a total of almost 40%. Between taxes and deductions, I don't see over 50% of my paycheque. That is just me - we still have to add my hubby's salary in there, and more of that goes to taxes too!

Just wanted to clarify since others might be confused - we pay both federal and provincial, and both of those taxes must be added together. Our tax rates are some of the highest in the world, and that can be clarified with this link:

http://www.kpmg.ca/en/services/tax/documents/2010_FederalandProvIncomeTaxRates1Q2010.pdf

HTH, Tiger

Although, you need to take in to account the taxes we pay are used to contribute to many things that people in other countries must pay for themselves.

 

[Tiger926]

But you're forgetting the tax rate is on your adjusted income... after tax deductions (I mean the deductions you fill in when you are figuring your adjusted gross income on your tax return, not the deductions from your paycheque that your employer sends to Canada Revenue). The basic personal amount alone is about $10,000 for federal taxes. That's a big proportion of the total yearly wages of somebody making minimum wage. They would pay 23% only on their income above their deductions.

That's true, but I figured the basic personal deduction amount was a given. It still doesn't make much of a difference for those of us who are in the high tax brackets though as pretty much all of our income is taxed at that high rate. For those in lower tax brackets, then it is going to make a difference.
Not sure what happens to your tips - if you don't declare them, then that is tax-free money. But if you do declare them, then that would make a difference too.

I just didn't want anyone to think that you only paid 8% personal tax, so I thought it important to clarify should someone misunderstand and think that lower tax brackets of people earning minimum wage are taxed only at a low rate of 8%.

Tiger

 

[Tiger926]

Although, you need to take in to account the taxes we pay are used to contribute to many things that people in other countries must pay for themselves.

Well, of course that's the purpose of taxes - I don't think I or anyone else was disputing that. But, and that's a big but, whether or not our taxes are actually being used for these purposes is another thread entirely.

Tiger

 

[declansdad]

Well, of course that's the purpose of taxes - I don't think I or anyone else was disputing that. But, and that's a big but, whether or not our taxes are actually being used for these purposes is another thread entirely.

Tiger

But it does account for why our taxes are higher. We don't have as many things to pay for out-of-pocket. A person making minimum wages in Canada doesn't need to worry about paying when they go to the hospital or doctor.

 

[MarkBarbieri]

In our village the "garbage men" make decent money so not exactly true. We need to raise our minimum wage.

I respect your desire to help people, but I think we would help more people by getting rid of our minimum wage altogether. Youth unemployment is at extremely high levels. The higher you make the minimum wage, the more you'll increase unemployment, especially for those with the fewest skills.

In my view, if you are going to have a minimum wage law, people should be able to opt out of it if they are willing to work for less.

Here is a recent editorial on the issue.

 

[Tiger926]

But it does account for why our taxes are higher. We don't have as many things to pay for out-of-pocket. A person making minimum wages in Canada doesn't need to worry about paying when they go to the hospital or doctor.

I'm not sure why you don't think I understand this? Nothing I said disputed this...I do question how our taxes are allocated though.

Of course, I'm grateful that we don't have to pay to go the doctor, but we were just discussing minimum wage amounts and personal income tax rates, so I didn't dispute that our taxes pay for these things.

HTH, Tiger

 

[LiLIrishChick63]

it really depends on where you live, but yeah the minimum wage in the US sucks. hence why most people have 2 jobs...

 

[DawnCt1]

We definatly don't pay 40% in income taxes. I just looked at my last paystub and 8% was taken off for taxes, I don't think that's bad at all. As a server I also don't get taxes on every cent I make in tips. We also don't pay for our healthcare here which saves alot, I cannot believe what people pay for medical procedures in the U.S.

But we get them when we need them. How long do you have to wait for an MRI?

 

[DawnCt1]

it really depends on where you live, but yeah the minimum wage in the US sucks. hence why most people have 2 jobs...

Where is the 'evidence' that MOST people in the US have two jobs?

 

[Lisa loves Pooh]

But it does account for why our taxes are higher. We don't have as many things to pay for out-of-pocket. A person making minimum wages in Canada doesn't need to worry about paying when they go to the hospital or doctor.

But minimum wage folks who are FT can and are eligible for health insurance if their company provides it.

My first FT job was minimum--well maybe a quarter above as I don't recall the minimum wage in 1997...but I made $5 an hour. I also was FT and had health insurance.

We can't assume that just b/c someone makes minimum wage in the US--they don't have health care.

Now sure--then you can go and compare systems...but just leaving out all the horrible scenarios of cancer, etc...

My healthcare was awesome at that job. PPO/no co-pays.

 

[declansdad]

But we get them when we need them. How long do you have to wait for an MRI?

Depends on whether it is a priority or an elective procedure. How much do you pay for yours?

 

[BCDisneyFanatic]

But we get them when we need them. How long do you have to wait for an MRI?

Well, my niece in British Columbia was having a problem with the vision in one of her eyes last week. She went to the eye doctor on Monday, a pediatric opthomologist (sp?) on Wednesday, had an MRI Thursday for a possible cyst behind her eye, and saw a pediatric neurologist on Friday. Not bad, considering they didn't have to pay out of pocket one cent.

 

[Scornelius]

But we get them when we need them. How long do you have to wait for an MRI?

Several people in my family have needed MRIs in the last 6 months, and they've all been done within days, if not hours, depending on the circumstances. When you GP refers you to a specialist it's either urgent or not. You might wait a little while (8 weeks, maybe?) if it's not urgent, but I personally have no trouble letting sicker people go first.

 

[Planogirl]

I still believe that there needs to be a minimum wage because there is just too much opportunity for abuse otherwise. I understand the reasoning in doing away with it but I don't agree that it's the best scenario.

 

[DeniseinNS]

But we get them when we need them. How long do you have to wait for an MRI?

If my doctor felt that it were an emergency, I would get in very quickly. If it's not an emergency of course the wait will be longer. And I don't have to worry about whether I can afford to have one or any other medical procedure that I may need. It sad hearing how many people in the U.S that will not go see a doctor when they are sick because they just can't afford it.

 

[Northstar]

Getting back to the topic of minimum wage in 3 countries (US, Canada, and Mexico since saradela clued us in on the $7/day min wage there):

The truth is that if you are working a 40-hour week at minimum wage in any of these countries, you will probably be able to survive. You will not be able to support yourself at a comfortable middle class lifestyle with good healthy food, a well-kept-up place to live, a nice ride, a cell phone, computers, stylish clothes, and vacation travel. You will be poor. Being poor does not mean not being able to survive. It doesn't even mean that you cannot be happy and fulfilled in life.

Being poor with a full-time minimum wage job is way better than being poor and homeless with no job.

I am interested in the argument that no minimum wage would mean more work to go around because employers could hire more people to do work that isn't productive enough to earn back the minimum wage for the employer. But I think this ignores the problem that employers have way more freedom to search around for a cheaper workforce, than workers have to move around looking for the best wage. What do you think?

 

[mouseaddicts]

I would like to add that if you make min. wage that while they take taxes out of your paycheck that more than likely you get back more than you pay in (Earned income credit). So in reality you don't pay any tax. After all 47% of Americans don't.

 

[minnie56]

But we get them when we need them. How long do you have to wait for an MRI?

I had one several weeks back...I had it the day after I saw the Dr

 

[MarkBarbieri]

I would like to add that if you make min. wage that while they take taxes out of your paycheck that more than likely you get back more than you pay in (Earned income credit). So in reality you don't pay any tax. After all 47% of Americans don't.

Strictly speaking, that 47% statistic refers to Federal Income tax. I believe that almost all wage earners have social security and medicare taxes taken out of their paychecks and those taxes are not refunded. Low income earners also pay other federal taxes like gasoline taxes. Many also pay taxes on the state and local level - income taxes, sales tax, use tax, more gasoline tax, and property tax.

 

[DawnCt1]

Depends on whether it is a priority or an elective procedure. How much do you pay for yours?

Nothing. We have insurance.