Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats
by mrep on Saturday September 26, 2020 @11:54PM
(#24604112)
Hm, I actually did the full pay calculation included payrolls a month ago for myself last year. Granted, I was in washington last year, but between federal income taxes, social security, and medicare mine was about 27% on 221k income as a single person with no kids and I'm including the employer payroll taxes as part of that income. Converting USD to CAD gets you 294,528 which has an average tax rate of 41.69% according to this website [0] and it doesn't include your payroll tax.
As for healthcare, vision, and dental for a single person with no kids my employer paid $8,800 for the year, I paid 150, I get to put $3,500 pretax income into a HSA for healthcare spending, and my max out of pocket spending is $2,600 so that's not really a concern for me.
Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats
by vkou on Sunday September 27, 2020 @02:41AM
(#24604696)
Washington derives all of its tax revenue from things that don't appear on your paystub. Property taxes and sales taxes. Because it's not saddled with Prop 13, it can actually collect property taxes at its posted rates.
This does, however, mean that it has one of the most regressive tax regimes in the country.
Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats
by david-gpu on Saturday September 26, 2020 @08:46PM
(#24603325)
If we are going into such detail then we also need to take into account differing currencies, cost of living, salary distribution, purchasing power parity, sales taxes, property taxes, tax credits, etc.
Just as an example, my salary in the US would be 30-40% higher and denominated in a currency that is worth 34% dollar for dollar.
Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats
by vkou on Saturday September 26, 2020 @09:01PM
(#24603380)
Sales tax in Ontario is 13%, sales tax in Cali is 7%. Property tax in Toronto is 0.61%, property tax in San Francisco is 1.18% [1]. The net burden of these non-payroll taxes is pretty similar.
[1] Assuming you're one of those suckers that isn't laughing all the way to the bank, thanks to the mindboggling piece of legislature called 'Proposition 13'.
Which, for an income of $231,600/year ($11,600 of which get taken off your paycheque before you even see it), adds up to a total of $71,143.
Meanwhile in Ontario, your total tax burden, for an income of $223,750 ($3,754 of which gets taken off your paycheque before you even see it), adds up to... $88,663.
Of course, in California, your employer is also spending ~$20,000/year on your health insurance plan (And is asking you to pitch in ~$6,000).
In Ontario, at that income level the province will bill you... $900/year for a health premium. The rest of your health care costs[1] come out of the regular taxes you pay.
...And if we add all that to the math, you'll discover that the Canadian takes home a bigger portion of their paycheque then their American equivalent.
[1] Okay, I'm also missing vision and dental, which are part of the $20,000/year employer part of your health plan, but are not covered by the province of Ontario. The Canadian would have to pitch in a bit of cash for that.