How much income and payroll taxes do you pay?

[Gabu]

Gabu, you work for Microsoft?  They pay their Waterloo co-op students $90K a year.  That puts them immediately into the maximum income tax bracket in Ontario.

Given that I'm only working here for work term four months in duration, I won't be making $90,000.

[Richard]

Gabu, you work for Microsoft?  They pay their Waterloo co-op students $90K a year.  That puts them immediately into the maximum income tax bracket in Ontario.

Given that I'm only working here for work term four months in duration, I won't be making $90,000.

Well, yes, I mean the equivalent rate.  For a four month stretch, which is one third of the year, they pay $30K.  American dollars.  I would have been nice to get a co-op job there.

[Richard]

I think one should look at the bright side - if one is receiving a large income from one's wealth, getting even 30% of it is a wonderful thing.  One should dwell upon one's good fortune, not on the amount taxed away by the State.  After all, the entire fortune is predicated by and dependant upon the State.

I'll just get my salary to be paid off shore and will never declare it.  No income taxes or payroll taxes for me.

Won't that be awkward for your employer?  They will not be able to 'deduct' your salary from their income, and hence will owe more tax - presumabely a similar amount to that which you will avoid paying.

Maybe I won't work for an employer?  Maybe I'll have my own company?

[David S]

*grabs a random paystub*

Total Earnings: 502.84

Deductions:

Federal Tax - 27.48
FICA Tax OASDI - 30.98
FICA Tax Med - 7.25
State Tax -16.00
Vision Insurance - 3.09 (this is optional)

Total Deductions - 84.80

Here's another:

Total Earnings: 648.73

Deductions:

Federal Tax - 49.35
FICA Tax OASDI - 40.02
FICA Tax Med - 9.37
State Tax - 24.00
Vision Insurance - 3.09 (once again, optional)

Total Deductions - 125.83

Figure it out. Of course I'll probably get some of that Federal and State tax back.

OK BRTD.  Vision insurance is not a tax so let's ignore that. Using your first paystub you paid about 16% of your income in taxes, and in the second you paid about 18%.  To put things in perspective for you the 80 bucks you paid with the first check would have paid for 16 table dances if you had been able to keep the money. Taxes on the second check would have bought 24 table dances.

Also you are only looking at taxes taken out of your check. That doesn't include sales taxes on goods and services you buy, or Federal and state taxes on booze or gas. You probably don't own property now but eventually you will and that gets taxed too.

Bottom line is that government is robbing you of hundreds of table dances a year.

I don't get table dances, I get lap dances. There's a difference. Table dances mean the stripper is just at your table and doesn't touch you, which is a waste of money. And I'm quite interested in where you can get a lapdance from $5, the cheapest I've ever seen is $10.

OK its been many years since I've been in a strip joint, so my $5 number needs to be adjusted for inflation. In that case the government ripped you off for 8 lap dances on your first check and 12 on the second.