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Don't forget your 15+% sales tax too though, that is more then double what we pay. I know it isn't called sales tax but I can't remember what it is called. Your federal and provincial taxes aren't all that different then what we pay in the US.
Our sales tax is 7% here in BC, and does not apply on groceries, children's clothing or other necessities. I addition to that we also have GST ( Goods and services tax ) of 6%. This tax replaced the hidden manufacturers tax a number of years ago. It was actually more then, but being hidden most were not even aware of it. It also is not charged on necessities. I wonder if the US has a hidden manufacturers tax?
GST does not apply on most used items, the exeption to this is vehicles sold by commercial dealers.
Taxes are very high on tobacco and booze ( sin tax ) as well as gasoline. The gas tax maintains our highway system which is very good, at least here in BC. I have no idea what is done with the "sin" tax.
Our sales tax is 7% here in BC, and does not apply on groceries, children's clothing or other necessities. I addition to that we also have GST ( Goods and services tax ) of 6%. This tax replaced the hidden manufacturers tax a number of years ago. It was actually more then, but being hidden most were not even aware of it. It also is not charged on necessities. I wonder if the US has a hidden manufacturers tax?
GST does not apply on most used items, the exeption to this is vehicles sold by commercial dealers.
Taxes are very high on tobacco and booze ( sin tax ) as well as gasoline. The gas tax maintains our highway system which is very good, at least here in BC. I have no idea what is done with the "sin" tax.
Well, here in the states, it (sin tax) must pay for new shoes for our politicions when they scuff them tapping them under restroom partitions!
No, your taxes do not seem bad, especially knowing your insurance premium is $54. Does the premium change based on age?
Thank you so much for providing this info. Very interesting!
No the premium doesn't change with age, but taxes, federal, municipal and provincial decrease once you reach 65, along with a bunch of other perks like free ferry service on week days, a decrease in fees for public transit etc. etc.
No the premium doesn't change with age, but taxes, federal, municipal and provincial decrease once you reach 65, along with a bunch of other perks like free ferry service on week days, a decrease in fees for public transit etc. etc.
I really appreciate your sharing all this info, b/c I truly was not aware of these specifics. I had written some articles on comparing the Canadian healthcare system w/ ours - but that has been over 20 years ago - and I think I was focusing on utilization statistics - and maybe technology (as in, purchasing).
I think the benefit of having taxes decrease once you reach 65 is very interesting. Now you have sparked my interest and I am going to have to research and learn more.
Again, thank you for taking the time to post and share.
I don't see it primarily as a tax dodge... tax fee expenditures are limited to medical expenses until after 65.
I agree. If you think it is a tax dodge then I don't think you understand how HSAs work. Plus there is an annual contribution limit of $5650 for families.
I agree. If you think it is a tax dodge then I don't think you understand how HSAs work. Plus there is an annual contribution limit of $5650 for families.
According to a Treasury Department webpage, indeed the limit is $5650, but it also talks about:
New Amounts for Out-of-Pocket Spending on HSA-Compatible HDHPs:
* The maximum annual out-of-pocket amounts for HDHP self-coverage increase to $5,500 and the maximum annual out-of-pocket amount for HDHP family coverage is twice that, $11,000.
Can someone explain this? It seems to mean that the account holder can put $5,650 in the account in a year, tax deductible, but may be liable for up to $11,000 out-of-pocket. So, hopefully no-one in the family will suffer hospitalization until at least until after two years of contributions to the account, plus two years worth of premiums of course.
So, while helpful, it still is no free ride and there are expensive risks involved.
I have heard that there are proposals to raise the contribution limit to $10,000 or $15,000. Ten thousand would make sense because it would match the maximum deductible amount. If $15,000 then the deductible limit should also be raised to $15,000.
Now that the US currency is like scrap paper, what's $15,000? Soon so-called "pharmacies" (what a joke they are in the US) will be charging $15,000 for that sugar water that they call cold medicine.
An exaggeration to be sure, but I think you get the point.
Our sales tax is 7% here in BC, and does not apply on groceries, children's clothing or other necessities. I addition to that we also have GST ( Goods and services tax ) of 6%. This tax replaced the hidden manufacturers tax a number of years ago. It was actually more then, but being hidden most were not even aware of it. It also is not charged on necessities. I wonder if the US has a hidden manufacturers tax?
GST does not apply on most used items, the exeption to this is vehicles sold by commercial dealers.
Taxes are very high on tobacco and booze ( sin tax ) as well as gasoline. The gas tax maintains our highway system which is very good, at least here in BC. I have no idea what is done with the "sin" tax.
Ok, so 7+6 is 13%. I know it is higher in other parts of Canada. We have 6.5% sales tax here. No tax on food, clothing for anyone, prescription medications and other things that are necessities. Not all states are like this. In the US it is illegal to have hidden taxes. We also have sin-tax on tobacco and a gasoline tax that helps fund roads, etc.
According to a Treasury Department webpage, indeed the limit is $5650, but it also talks about:
New Amounts for Out-of-Pocket Spending on HSA-Compatible HDHPs:
* The maximum annual out-of-pocket amounts for HDHP self-coverage increase to $5,500 and the maximum annual out-of-pocket amount for HDHP family coverage is twice that, $11,000.
Can someone explain this? It seems to mean that the account holder can put $5,650 in the account in a year, tax deductible, but may be liable for up to $11,000 out-of-pocket. So, hopefully no-one in the family will suffer hospitalization until at least until after two years of contributions to the account, plus two years worth of premiums of course.
So, while helpful, it still is no free ride and there are expensive risks involved.
I have heard that there are proposals to raise the contribution limit to $10,000 or $15,000. Ten thousand would make sense because it would match the maximum deductible amount. If $15,000 then the deductible limit should also be raised to $15,000.
Now that the US currency is like scrap paper, what's $15,000? Soon so-called "pharmacies" (what a joke they are in the US) will be charging $15,000 for that sugar water that they call cold medicine.
An exaggeration to be sure, but I think you get the point.
I see your point. But when you add up deductible plus the lower annual premiums for an HDHP it is still less than the lower deductible plans premiums and co-pays throughout the year.
Cash-flow could be a problem for some early in the year but over the course of the year the costs would be less overall.
I see your point. But when you add up deductible plus the lower annual premiums for an HDHP it is still less than the lower deductible plans premiums and co-pays throughout the year.
Cash-flow could be a problem for some early in the year but over the course of the year the costs would be less overall.
I agree, and what I'm saying is that I expect both the tax-deductible contribution to the HSA and the insurance deductible in the HDHP to increase over the years (the contribution already has an inflation mechanism attached to it), and on top of that the maximum contribution should be equal to the maximum deductible so that the participant is fully covered in the first year, at least for those who can.
Put in another way, the current contribution seems a bit low, and though it may catch up through the "official" inflation mechanism, actual inflation for medical services, premiums, and deductibles may increase at an even faster rate.
The HSA-HDPD system should do more, not less.
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