Personal Finance

Income Over $150k To Be Heavily Taxed

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  • Sep 15th, 2014 8:25 pm
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Deal Expert
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Oct 26, 2003
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ksgill wrote:
May 5th, 2014 10:27 am
I agree, it is just that some here think that Canadian healthcare system is perfect the way it is.
people are afraid of change, some think doc will all go private cause that's more money
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Jan 26, 2014
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I'd love for you to assure me all of those things (pension, overhead, paid vacations, defined work week) because they have been missing form my compensation package. It may exist for the few hospital employed physicians (medical microbiologists, pathologists, etc.) but certainly not the majority.

My point: there is a major difference between a salary that provides a host of benefits and OHIP/MSP money transferred in a fee for service environment. As the previous post asked why physicians in Europe make 100k and those in Canada make 400k I was pointing out that the net benefit per physician is virtually the same (and presumably the money paid by the state would be the same as well) despite the 4:1 difference alluded to.

I'm not sure the whining you're referring to - just pointing out the truths and trying to provide some insider's context for the numbers thrown around by ignorant commenters.
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do doc in the states actually get paid more after everything is considered? they have to pay a lot more liability insurance, more overhead to chase down billing and deal with insurance, etc.
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Mar 24, 2008
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divx wrote:
May 5th, 2014 10:52 am
do doc in the states actually get paid more after everything is considered? they have to pay a lot more liability insurance, more overhead to chase down billing and deal with insurance, etc.
Yes, they do but it entirely depends on which city/state you work in and your specialty. For example, a physician in New York, NY will make way more than a physician in St. Louis, Missouri.

To use a specific example, the average radiologist salary in the USA is $365,000 vs $217,000 in Canada. Factor in the lower taxes, generally cheaper cost of living and you are still looking at a difference of ~100k+. Do you think the insurance and overhead costs a 100k/year more? The truth is that Doctors (like a lot of other professions) get gypped in Canada when you compare to the USA.
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^basically they move to the states for a pay raise and we need to import more doctors from other countries to make up for the loss
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divx wrote:
May 5th, 2014 11:44 am
^basically they move to the states for a pay raise and we need to import more doctors from other countries to make up for the loss
That is exactly how it works except Canada makes it harder for foreign trained physicians to practice (when you compare to the US). Well qualified people end up driving cabs here just to make ends meet as we complain about shortage of Doctors. Then you have people here who claim that physicians from other countries are not as "well trained" as Physicians here. The solution is to put these guys through a year or two of unpaid training and not to deny them completely. :facepalm:
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ksgill wrote:
May 5th, 2014 12:05 pm
That is exactly how it works except Canada makes it harder for foreign trained physicians to practice (when you compare to the US). Well qualified people end up driving cabs here just to make ends meet as we complain about shortage of Doctors. Then you have people here who claim that physicians from other countries are not as "well trained" as Physicians here. The solution is to put these guys through a year or two of unpaid training and not to deny them completely. :facepalm:
the states is pretty smart and that's how they maintain their position as super power. They do a crappy job of training their own talent but sucks up all the good talent in the world, why spend all the money and effort to train local talent when you can import it on the cheap? We are doing the same as them, except on a lesser extent.
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Mar 8, 2004
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CensoredByRFD wrote:
Apr 30th, 2014 1:10 pm
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.
(
fyi CRA is clamping down on single employee corporations (i.e. contractors) paying themselves out with dividends. I don't have the source for this at the moment, but I do recall reading an article about it in 2013.

Anyway, it's kind of moot. If you're earning anywhere near 150K you should be smart enough to mitigate your exposure and if you're not, then you deserve to be taxed in that bracket
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Feb 5, 2013
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So the people making 150,000 are a moot point. It is the office of 3 or 4 executives making 1.5 million plus who see that moving their office to another jurisdiction makes them richer. You lose all of their taxes, as well as the taxes from all of their support staff. Sure, it's not easy to move for everyone, but if one office bolts to greener pastures, it negates all the extra revenue the tax was supposed to garner. Then who do they go after? The sub 150,000 crowd, of course.
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bankonit wrote:
May 5th, 2014 3:01 pm
So the people making 150,000 are a moot point. It is the office of 3 or 4 executives making 1.5 million plus who see that moving their office to another jurisdiction makes them richer. You lose all of their taxes, as well as the taxes from all of their support staff. Sure, it's not easy to move for everyone, but if one office bolts to greener pastures, it negates all the extra revenue the tax was supposed to garner. Then who do they go after? The sub 150,000 crowd, of course.
that's the point of a free society, people can move
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Nov 17, 2004
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Tig wrote:
May 5th, 2014 1:26 pm
(
fyi CRA is clamping down on single employee corporations (i.e. contractors) paying themselves out with dividends. I don't have the source for this at the moment, but I do recall reading an article about it in 2013.

Anyway, it's kind of moot. If you're earning anywhere near 150K you should be smart enough to mitigate your exposure and if you're not, then you deserve to be taxed in that bracket


Hey, yes, they did that starting around last year.

I was referring to the ones of us who own corporations with staff/employees/offices, etc. At the moment, with the recent increased taxation of small business non-eligible dividends there really isn't much benefit to paying ourselves dividends, so we usually just go with straight salary and expenses most of the time.
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Feb 5, 2013
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divx wrote:
May 5th, 2014 3:11 pm
that's the point of a free society, people can move
Well, that's kind of my point. Ontario often gives tax credits to get software and film companies to make the move to Ontario. Why do they then drive others away with tax increases? Or, if you argue that tax increases do not drive away revenue, why the heck offer ineffective tax credits to attract business?
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Mar 23, 2009
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Tig wrote:
May 5th, 2014 1:26 pm
Anyway, it's kind of moot. If you're earning anywhere near 150K you should be smart enough to mitigate your exposure and if you're not, then you deserve to be taxed in that bracket
Harder to do for employees.
ksgill wrote:
May 5th, 2014 12:05 pm
That is exactly how it works except Canada makes it harder for foreign trained physicians to practice (when you compare to the US). Well qualified people end up driving cabs here just to make ends meet as we complain about shortage of Doctors. Then you have people here who claim that physicians from other countries are not as "well trained" as Physicians here. The solution is to put these guys through a year or two of unpaid training and not to deny them completely. :facepalm:
They actually did that a while back and it was a disaster. It turns out an awful lot of them were subpar, so they had to go through the full training or near full training anyway. They got rid of that program completely, relatively quickly.

Part of the problem was due to allowing the wrong people into the program, but I guess it's hard to get the right people when they're just looking at resumes, and what not.
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bankonit wrote:
May 5th, 2014 3:39 pm
Well, that's kind of my point. Ontario often gives tax credits to get software and film companies to make the move to Ontario. Why do they then drive others away with tax increases? Or, if you argue that tax increases do not drive away revenue, why the heck offer ineffective tax credits to attract business?
yep, gotta compete globally for top talents, we are actually doing pretty good in that
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Jun 29, 2009
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The libs been so generous with the province's money ... E health, gas plant, etc.


Who's paying for their generosity? Yours truly ...

Governments always complain of lack of money ... But they money they do have, they spent without care

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