Google's expansion plans show why Canada's tech boom is here to stay

Re:Google's expansion plans show why Canada's tech boom is h... by starky on Sunday February 09, 2020 @01:12AM (#22280674)

Sure you could add other cities, but the result of the graph is the same for Canadians. We are getting absolutely hosed on salary considering that nearly everything (minus housing) in Canada is pegged to the US dollar. It makes it really hard to attract talent when someone looking for a job could move 4 hours south and make 50-100% more money to have more purchasing power. Other countries being similar to our level doesn't change this fact, they are also being screwed over in purchasing power, but they at least have some insulation from being directly dependent on the US.

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Re:Google's expansion plans show why Canada's tech boom is h... by smnrchrds on Sunday February 09, 2020 @01:45AM (#22280776)

> nearly everything (minus housing) in Canada is pegged to the US dollar

This is another persistent myth I wish would die. For example, between 1998 and 2018 (a recent 20 year period for which data is readily available), USD/CAD exchange rate has been as favourable as 0.989 CAD per USD and as unfavourable as 1.570 CAD per USD [1], approximately a 59% difference between the highest and the lowest.

During the same period, purchasing power parity has only fluctuated between 1.185 and 1.248 CAD per USD [2], only a 5% difference between the highest and the lowest.

Contrary to the popular online belief, Canadian currency is not a proxy that is only good for exchanging for USD to buy good and services. It is an independent and strong currency on its own.

[1] https://data.oecd.org/conversion/exchange-rates.htm

[2] https://data.oecd.org/conversion/purchasing-power-parities-p...

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Re:Google's expansion plans show why Canada's tech boom is h... by wolco on Sunday February 09, 2020 @01:28AM (#22280719)

Add in the 50% taxes it really makes things very expensive.

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Re:Google's expansion plans show why Canada's tech boom is h... by 52-6F-62 on Sunday February 09, 2020 @01:42AM (#22280762)

We don’t pay 50% in tax... Even at the higher income scales

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Re:Google's expansion plans show why Canada's tech boom is h... by wolco on Sunday February 09, 2020 @04:18AM (#22281209)

In Ontario at 100k your marginal tax rate is 43%.

You get a 10,000 raise you get 5,700.

Not exactly 50% but pretty close. Add in a healthcare levy at $900 or less and things are getting closer.

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Re:Google's expansion plans show why Canada's tech boom is h... by 52-6F-62 on Sunday February 09, 2020 @01:54PM (#22283641)

But in the context of Canada versus USA the difference seems marginal.

https://neuvoo.ca/tax-calculator/?iam=&uet_calculate=calcula...

Using the USD equivalent amount in CA https://neuvoo.com/tax-calculator/?iam=&uet_calculate=calcul...

Works out to ~$74k

And that’s including our healthcare and other social services. That ~$2000 CAD goes a long, long way and I’d rather have it doing what it’s doing than gain it for what I’d lose.

And the marginal rate is not what you end up paying.

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Re:Google's expansion plans show why Canada's tech boom is h... by wolco on Sunday February 09, 2020 @05:24PM (#22284735)

That's $2000+ more at 100,000 to 110,000. If we pick a different state even more. 5700 left out of 10000.

I know a lot of worthy causes that could benefit from the $2000 where it would make a meanful impact.

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Re:Google's expansion plans show why Canada's tech boom is h... by 52-6F-62 on Sunday February 09, 2020 @11:00PM (#22286338)

I don’t understand what you’re trying to say. In my example the $2000 CAD paid in Canada to taxes at the same income in Ontario versus California goes to fund one of the worlds highest ranked public education and healthcare systems. I’d call that a meaningful impact.

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Re:Google's expansion plans show why Canada's tech boom is h... by wolco on Monday February 10, 2020 @09:28AM (#22289354)

Healthcare is paid by the province. Take 42% of the province taxes only. Maybe $190. Most of the tax paid is federal. That means more of the $2000 goes to the military.

Still think it's a good idea? A lot of health related causes could use the remaining 2000.

And my 2000 figure is the difference you pay when making an extra 10,000 at the 100,000 level.

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Re:Google's expansion plans show why Canada's tech boom is h... by 52-6F-62 on Monday February 10, 2020 @11:01AM (#22290221)

I think you've just been talking past me then, and not really responding.

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Re:Google's expansion plans show why Canada's tech boom is h... by yibg on Sunday February 09, 2020 @03:44AM (#22281093)

Marginal tax gets above 50% pretty quickly. For example Ontario takes a bit about 200k a year to get >50%. For average tax rate yes you’ll need a lot more. 800k a year gets you pretty close at 49.1%. Sounds like a lot but that’s “only” 600k usd at today’s exchange rate. High but in the ball park of a staff level engineer at Facebook or google.

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Re:Google's expansion plans show why Canada's tech boom is h... by yellowait44 on Sunday February 09, 2020 @01:53AM (#22280796)

Federal higher income bracket is not 50% but you have to factor the province as well so yeah well above 50% in Quebec for instance.

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Re:Google's expansion plans show why Canada's tech boom is h... by smnrchrds on Sunday February 09, 2020 @02:42AM (#22280930)

I mean, you are technically correct. If you earn more than approximately 800k in Quebec, you would pay about 50% of your income in taxes. But how many people earn remotely that much? Is this really a concern for us mere mortals?

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Re:Google's expansion plans show why Canada's tech boom is h... by yellowait44 on Sunday February 09, 2020 @09:36AM (#22282272)

Average tax of 50% is pretty hard to hit you are right but I was more pointing at marginal tax rate which is what most people refer to when they say Canadian income tax are high. Just check the CRA tax brackets and add in the Revenu Quebec tax bracket for instance.

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Re:Google's expansion plans show why Canada's tech boom is h... by yellowait44 on Sunday February 09, 2020 @02:35PM (#22283872)

For those who want to verify https://www.canada.ca/en/revenue-agency/services/tax/individ... and add Quebec tax bracket: https://www.revenuquebec.ca/en/citizens/your-situation/new-r...

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