Personal Finance

Income Over $150k To Be Heavily Taxed

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  • Sep 15th, 2014 8:25 pm
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[OP]
Penalty Box
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Oct 19, 2012
3359 posts
412 upvotes
Toronto

Income Over $150k To Be Heavily Taxed

There has been a leak of tomorrow's budget. 3 things will be heavily taxed, cigarrettes, avionic fuel and incomes over $150,000.

Can a person just negotiate with the boss and tell him to pay him $1 wage a year and put the rest of the $149,999 dollars in an expense account to avoid paying the tax just like Apple's Steve Jobs did and the way Rogers CEO does? Its completely legal by the way all these rich CEO's get paid.

What will your boss lose to do this favor for you?
230 replies
Deal Addict
Apr 12, 2005
1425 posts
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Gammatron wrote:
Apr 30th, 2014 12:39 pm
There has been a leak of tomorrow's budget. 3 things will be heavily taxed, cigarrettes, avionic fuel and incomes over $150,000.

Can a person just negotiate with the boss and tell him to pay him $1 wage a year and put the rest of the $149,999 dollars in an expense account to avoid paying the tax just like Apple's Steve Jobs did and the way Rogers CEO does? Its completely legal by the way all these rich CEO's get paid.

What will your boss lose to do this favor for you?
Which budget? fed or Ont ?
Member
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Apr 22, 2011
432 posts
39 upvotes
Gammatron wrote:
Apr 30th, 2014 12:39 pm
Can a person just negotiate with the boss and tell him to pay him $1 wage a year and put the rest of the $149,999 dollars in an expense account to avoid paying the tax just like Apple's Steve Jobs did and the way Rogers CEO does?
Signs point to you being the boss at these levels of pay haha
Warning: Anything I write is to the best of my knowledge, I may be wrong about things, I may have a different thought on things than yourself and I do not always follow the herd. I am also a RFD personal finance addict.
[OP]
Penalty Box
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Oct 19, 2012
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Toronto
NoOneCanStopMrDomino wrote:
Apr 30th, 2014 12:43 pm
Signs point to you being the boss at these levels of pay haha
What are you talking about? Half the senior cops get this income and many private industry managers.

I think its the provincial budget.
Member
Sep 9, 2012
372 posts
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TORONTO
It's the Ontario provincial budget.
Increases to sin taxes, 'green' taxes, and income from high earners.

I can live with that, and I suspect the NDP will too in order to help the government survive.
Deal Addict
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Nov 17, 2004
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It sounds like if that's the case, the benefits of incorporations and paying one's self with dividends when possible will be a good tax planning strategy again.
Deal Addict
Jan 30, 2012
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Gammatron wrote:
Apr 30th, 2014 12:39 pm
3 things will be heavily taxed, cigarrettes,
I'm sure smuggling from the US will compensate.
Gammatron wrote:
Apr 30th, 2014 12:39 pm
avionic fuel
That's great, I'm sure it will encourage more airlines to use Pearson. it's not like Pearson is already one of the most expensive airports in the world to land a plane.
Gammatron wrote:
Apr 30th, 2014 12:39 pm
Can a person just negotiate with the boss and tell him to pay him $1 wage a year and put the rest of the $149,999 dollars in an expense account to avoid paying the tax just like Apple's Steve Jobs did and the way Rogers CEO does?
CEOs don't just get paid in cash, they get paid in stock and stock options.
Deal Expert
Mar 23, 2009
16558 posts
3587 upvotes
Toronto
What does "heavily" mean though? All I've seen so far about the raised income tax is that individuals with incomes over $150000 will be taxed.

BTW, it seems they came to this decision based on focus groups, not because they actually think it's the right thing to do.
Deal Addict
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Jun 22, 2004
2123 posts
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Gammatron wrote:
Apr 30th, 2014 12:39 pm
There has been a leak of tomorrow's budget. 3 things will be heavily taxed, cigarrettes, avionic fuel and incomes over $150,000.

Can a person just negotiate with the boss and tell him to pay him $1 wage a year and put the rest of the $149,999 dollars in an expense account to avoid paying the tax just like Apple's Steve Jobs did and the way Rogers CEO does? Its completely legal by the way all these rich CEO's get paid.

What will your boss lose to do this favor for you?
Fairly sure that the increases are on the portion of income above $150k. You do know what marginal tax is, no?
Member
Nov 25, 2011
422 posts
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201-8 Sampson Mews, …
If you'd like to pay me over $150k I'll happily pay this tax...
Deal Fanatic
Mar 24, 2008
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I wish I had to pay $1 million in taxes... wouldn't that be nice? On topic, the concept of marginal tax rates is just lost on some people.
Deal Addict
Jan 21, 2014
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it's net income right? I suppose it's after RRSP contributions correct?
Deal Addict
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Jun 22, 2004
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mkl38s wrote:
Apr 30th, 2014 1:42 pm
it's net income right? I suppose it's after RRSP contributions correct?
I have not seen the details, but that is a safe assumption.
Deal Fanatic
Mar 24, 2008
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mkl38s wrote:
Apr 30th, 2014 1:42 pm
it's net income right? I suppose it's after RRSP contributions correct?
That's the point of RRSPs isn't it?
Member
Nov 25, 2011
422 posts
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201-8 Sampson Mews, …
ksgill wrote:
Apr 30th, 2014 1:36 pm
I wish I had to pay $1 million in taxes... wouldn't that be nice? On topic, the concept of marginal tax rates is just lost on some people.
I don't know what you mean. I plan on being paid $149,999 so I can pay no taxes :D

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