From: abc@a123.ca   
      
   How much do Canadians make?   
      
   Data from the Canada Revenue Agency suggests that under 1% of tax filing   
   Canadians earn more than $250,000 per year.   
      
    Mar. 26, 2011   
      
   Ever wonder how much your neighbour makes? You may be surprised to learn   
   that they probably earn less than you think.   
      
   One of the measures in this past week’s federal budget highlighted this   
   fact by showing just how many seniors have very little income. The budget   
   announced an enhancement to the Guaranteed Income Supplement such that   
   seniors with little or no income other than Old Age Security and the GIS   
   will receive additional annual benefits of up to $600 for single seniors   
   and $840 for couples.   
      
   To qualify for the full supplement, single recipients would have to an   
   annual income (excluding Old Age Security and GIS) of $2,000 or less and   
   couples would have to earn under $4,000 annually.   
      
   Above these income thresholds, the amount of the top-up will be gradually   
   reduced and will be completely phased out at an income level of $4,400   
   for singles and $7,360 for couples. The government estimates that this   
   measure, if ultimately passed, would benefit more than 680,000 seniors   
   across Canada.   
      
   That so many Canadians have such a low income may come as a shock to you   
   but if you take a close look at the statistics, you may uncover some   
   eye-opening facts that could reframe your view of how much Canadians   
   actually earn.   
      
   New 2011 interim income statistics data released last month by the Canada   
   Revenue Agency looks at data from personal income returns that were   
   processed for the 2009 tax year, which generally had to be filed by the   
   end of April 2010. While these are preliminary statistics, they are based   
   on approximately 97% of all returns filed.   
      
   In 2009, Canadians filed nearly 24.5 million personal tax returns. Of   
   those, 8.3 million of them were non-taxable the majority of which are   
   likely being filed by Canadians to ensure their ongoing eligibility for   
   certain benefits and credits.   
      
   For example, individuals who may be eligible to receive a goods and   
   services tax/harmonized sales tax (GST/HST) credit need to file annually.   
   Students who may have no current tax to pay but who wish to carry forward   
   or transfer their tuition, education, and textbook amounts should file as   
   well. Teenagers who have earned income, perhaps from a part-time or   
   summer job, should file to report earned income to ensure eligibility to   
   make an RRSP contribution in a future year. Parents who receive the   
   Canada Child Tax Benefit and the Universal Child Care Benefit should also   
   be filing annually to ensure access to these valuable amounts.   
      
   So, how much do Canadians actually make?   
      
   Of the 24.5 million returns filed, 18 million Canadians reported total   
   income of $50,000 or less. That’s not a typo. In other words, ignoring   
   individuals who don’t file returns such as children, nearly 75% of tax-   
   filing Canadians earned under $50,000 in total income in 2009.   
      
   Add another 5 million Canadians who reported total income of between   
   $50,000 and $100,000 and you conclude that about 95% of individuals have   
   income below $100,000 annually.   
      
   What about Canada’s highest income earners? 880,000 Canadians reported   
   income in the range of $100,000 to $150,000, 333,000 reported incomes   
   between $150,000 and $250,000 and a mere 174,000 of tax return filing   
   Canadians or 0.7% had income over $250,000.   
      
   What’s also interesting is the effect your income has on your marginal   
   tax rate and your average tax rate. Your marginal tax rate is the amount   
   of tax you pay on an additional dollar of income above a certain amount   
   while your average tax rate, which is typically much lower than your   
   marginal rate, is simply the amount of tax you pay divided by your total   
   income.   
      
   While most of us intuitively think of Alberta as a personal income tax   
   haven, when you earn $50,000 of taxable income in 2011, you actually pay   
   more tax in Alberta than you would in Ontario or B.C.   
      
   On $50,000, an individual claiming only the basic personal amounts   
   federally and provincially would pay a total of $8,850 of taxes in B.C.   
   or $9,680 is she lived in Ontario, but in Alberta, would face a tax bill   
   totaling $9,815!   
      
   While we think of Alberta as having the lowest personal income tax in   
   Canada, that’s really only true at higher income levels, owing to the   
   nature of its 10% flat provincial tax rate.   
      
   For the $50,000 Alberta income-earner, both her marginal and average tax   
   rates (32% and 19.6% respectively) are above the rates in B.C. and   
   Ontario.   
      
   So as you sit down to prepare your tax return this month and review how   
   much income you actually earned last year, perhaps you will experience a   
   sense of schadenfreude when you realize that your neighbour probably   
   makes less than you think.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)