Canadians: Tell us how you feel about your health care. (health insurance, daycare)

[Houston3]

Do you pay for it thru a tax? If so how much does it cost say someone making $75,000.00 a year U.S.?

[nuala]

Originally Posted by Houston3

Do you pay for it thru a tax? If so how much does it cost say someone making $75,000.00 a year U.S.?

Your tax is taken from your income, and then it becomes government money part of which flows to the health care. You as a taxpayer wouldn't know how much of your tax was shared with the health care.

The personal tax rates for 2009 are:

• 15% on the first $38,832 of taxable income, +
• 22% on the next $38,832 of taxable income (on the portion of taxable income between $38,832 and $77,664), +
• 26% on the next $48,600 of taxable income (on the portion of taxable income between $77,664 and $126,264), +
• 29% of taxable income over $126,264.

[Acajack]

Originally Posted by nuala

Your tax is taken from your income, and then it becomes government money part of which flows to the health care. You as a taxpayer wouldn't know how much of your tax was shared with the health care.


The personal tax rates for 2009 are:

• 15% on the first $38,832 of taxable income, +
• 22% on the next $38,832 of taxable income (on the portion of taxable income between $38,832 and $77,664), +
• 26% on the next $48,600 of taxable income (on the portion of taxable income between $77,664 and $126,264), +
• 29% of taxable income over $126,264.

This is true, but these are only the federal income tax rates. Provincial income tax levels vary from province to province, but all in all, someone who makes 75K would generally pay an average of about 40% income tax (this includes both federal and provincial) in Canada.

Also, although it is impossible to tell how much of your income tax money goes to health care, most provinces say that about a third of all the tax money they collect goes to health care, and the federal government estimates that around 8% of all its tax money goes to health care (almost all of it transferred to the provinces, who are responsible for health care).

[nuala]

Originally Posted by Acajack

This is true, but these are only the federal income tax rates. Provincial income tax levels vary from province to province, but all in all, someone who makes 75K would generally pay an average of about 40% income tax (this includes both federal and provincial) in Canada.

Yes I realized later that I didn't include provincial part, but you beat me to that!

Originally Posted by Acajack

Also, although it is impossible to tell how much of your income tax money goes to health care, most provinces say that about a third of all the tax money they collect goes to health care, and the federal government estimates that around 8% of all its tax money goes to health care (almost all of it transferred to the provinces, who are responsible for health care).

This is someting I didn't know. For some reason 8% makes me feel good

[Acajack]

Originally Posted by nuala

Yes I realized later that I didn't include provincial part, but you beat me to that!



This is someting I didn't know. For some reason 8% makes me feel good

But don't forget that it's 8% plus +/- 33%!

[Wendy11]

I would not want to live in the American health system, because even if I had insurance or could afford it, it creates a society that is inhuman - where people have to choose between a car and an operation, or where the poor don't get as good service and maybe then spread disease? Canadian health care is generally pretty good - Toronto is terrible because the city services in general are overloaded, and alot of well off people don't want to live in T.O. anymore (like doctors).
I wish our system was more like it used to be where there was a kind of government run insurance, where people paid a monthly premium, like about 300 a month (based on income) and then everything was covered. Then the money went DIRECTLY to the health services and was spent as THEY saw fit - now they have to go begging to the government for their money. It is generally a good system, but I have seen cases where people who have money or power/friends in high places get way better care. Doctors frequently "refuse to accept new patients" but really, if you are rich or referred by powerful friends they'll still take you.

[grmasterb]

Originally Posted by Acajack

someone who makes 75K would generally pay an average of about 40% income tax (this includes both federal and provincial) in Canada.

Is this a marginal rate or an effective rate?

[grmasterb]

Originally Posted by Wendy11

I would not want to live in the American health system, because even if I had insurance or could afford it, it creates a society that is inhuman - where people have to choose between a car and an operation, or where the poor don't get as good service and maybe then spread disease? Canadian health care is generally pretty good - Toronto is terrible because the city services in general are overloaded, and alot of well off people don't want to live in T.O. anymore (like doctors).
I wish our system was more like it used to be where there was a kind of government run insurance, where people paid a monthly premium, like about 300 a month (based on income) and then everything was covered. Then the money went DIRECTLY to the health services and was spent as THEY saw fit - now they have to go begging to the government for their money. It is generally a good system, but I have seen cases where people who have money or power/friends in high places get way better care. Doctors frequently "refuse to accept new patients" but really, if you are rich or referred by powerful friends they'll still take you.

Your post confuses me a bit. If one has insurance in the U.S., there's generally no need to choose between a car and an operation. The insurance pays for the operation, sans a deductible and co-insurance. Still, it limits the financial exposure to the insured. And the poor in the U.S. are covered under Medicaid.

More specifically to the Canadian system, however.....Aren't the provincial health plans essentially "government-run insurance," as you call it?

[Acajack]

Originally Posted by grmasterb

Is this a marginal rate or an effective rate?

The 40% figure is an estimate of effective *income* tax rates across Canada. Since provincial income tax varies, a 75K earner might see a variation between 5% and 7% on that from some provinces to others.

If you are wondering about an effective tax rate that includes all taxes (including sales taxes, which are quite high in most of Canada), then you’re probably looking at between 45% and 50% for most Canadians in this income category.

A good comparison between Canada and the U.S. is tax freedom day, which is usually estimated at some time in April for Americans, whereas in Canada it occurs sometime in June, which gives additional credence to the 45% to 50% numbers.

[grmasterb]

Originally Posted by Acajack

The 40% figure is an estimate of effective *income* tax rates across Canada. Since provincial income tax varies, a 75K earner might see a variation between 5% and 7% on that from some provinces to others.

If you are wondering about an effective tax rate that includes all taxes (including sales taxes, which are quite high in most of Canada), then you’re probably looking at between 45% and 50% for most Canadians in this income category.

A good comparison between Canada and the U.S. is tax freedom day, which is usually estimated at some time in April for Americans, whereas in Canada it occurs sometime in June, which gives additional credence to the 45% to 50% numbers.

Thanks for the tax freedom analogy. That was helpful. When I was referring to effective rate I meant the income tax rate after deductions. For example, in the U.S. I'm in the 25% marginal bracket, but I pay less than 25% of my income in federal income tax because of decuctions and tax credits. And, yes, I have noticed that when you combine GST and PST in Canana it can get pretty substantial, although it's still less than the VAT in most European countries.