Today I become more conservative

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
As many of you know, I've started my first real career job out of university. Today was my first payday, and was I ever excited; monthly salary = big bucks!!

So I open up my pay stub to see the government take 30% of my money.

Of this large amount of money, 5% was for the Canadian Pension Plan and 2% for Unemployment Insurance.

Now fortunately, with all the tax credits I have accumulated over the last 4 years of being a student will allow me to get all this money back come tax time. But this is a short term effect on the big picture.

Therefore today I become extra critical of government spending and advocate the rise of economic freedom!!
 

Malfeas

Senior member
Apr 27, 2005
829
0
76
Lucky you, I'm single with no childrn or house and pay 32% in taxes. I don't think I will get a dime back.
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
Originally posted by: Malfeas
Lucky you, I'm single with no childrn or house and pay 32% in taxes. I don't think I will get a dime back.
Where do you live?
 

Rainsford

Lifer
Apr 25, 2001
17,515
0
0
I pay a huge amount in taxes. Partially that's because I live in Maryland, partially it's because I'm a single guy with no house. It's just not good overall. Part of the reason I'm a fiscal conservative.

Edit: Also, it would offset this if I had a dime for every time someone didn't understand why I wouldn't vote Republican because of this...
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
Originally posted by: Malfeas
Seattle
Damn, I didn't think US income taxes were more than Canadian!
I guess the Blues pay more than the Reds though...
 

beyoku

Golden Member
Aug 20, 2003
1,568
1
71
They get me for about 30 odd percent and i live in the United States. I have no children and I am single. I do have a tax write off - house. This will be my fist year filing after my purchase lets see what happens.

BTW - If you do make good money and your sigle, consider maxing out your IRA - or "Thrift Savings Plan" i think they call it in Canada. Also consider making a higher percentage contribution to your 401k or employee sponsored plan. On a side note you sound suprised. I have been working since 14 years of age. So I cant say i am suprised by any amount of taxation.....Until i hit 6 figures that is.
 

Malfeas

Senior member
Apr 27, 2005
829
0
76
Well, to be honest I was one of the common poor people all my life until I landed this job last summer. So now I'm in the top 10% income wise (it doesnt feel like it though) and have yet to file taxes on a full years income, so I don't really know if I will get any type of refund. But as I said I'm not married, no kids or house, so I can't imagine any type of tax deduction I can use. Also I contribute 12% to my 401k, or I do for the first 8 months of the year but I already maxed that out, and effectively only saw 56% of my paycheck.

Edit: also I don't have much experience managing my money, I never really had any before. Anyone know any resources for lowering my tax burden and maybe investing?
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
Originally posted by: beyoku
They get me for about 30 odd percent and i live in the United States. I have no children and I am single. I do have a tax write off - house. This will be my fist year filing after my purchase lets see what happens.

BTW - If you do make good money and your sigle, consider maxing out your IRA - or "Thrift Savings Plan" i think they call it in Canada. Also consider making a higher percentage contribution to your 401k or employee sponsored plan. On a side note you sound suprised. I have been working since 14 years of age. So I cant say i am suprised by any amount of taxation.....Until i hit 6 figures that is.
Thanks for the congrats :beer:

I hear you with the taxes thing, i get the complaining all the time from my dad.
He spends over $100k on income tax alone, you don't want to know how much they ream him on his capital gains and dividends.

Ah well...gotta pay "the man" :p
 

Bowfinger

Lifer
Nov 17, 2002
15,776
392
126
Originally posted by: 13Gigatons
Be glad you have a good job in a first world country.
Hear, hear! I'd rather keep 60% of (e.g.) $100K in the U.S. than 100% of $2K in Guatemala.
 

beyoku

Golden Member
Aug 20, 2003
1,568
1
71
Originally posted by: Malfeas
Well, to be honest I was one of the common poor people all my life until I landed this job last summer. So now I'm in the top 10% income wise (it doesnt feel like it though) and have yet to file taxes on a full years income, so I don't really know if I will get any type of refund. But as I said I'm not married, no kids or house, so I can't imagine any type of tax deduction I can use. Also I contribute 12% to my 401k, or I do for the first 8 months of the year but I already maxed that out, and effectively only saw 56% of my paycheck.

Edit: also I don't have much experience managing my money, I never really had any before. Anyone know any resources for lowering my tax burden and maybe investing?

Tax Shelters....Speak with your tax person and ask what are the beneficial tax shelters that you can have in your income bracket. From there go to your local bank or brokerage firm and speak with them. They could probably set you up with a "portfolio plan" for free. As a start i would shy away from what they call "Full Service" brokers because of the fees. Look at any discount brokerage house and see what they have to offer.
Broker Search - Here you can get all the history on your broker of choice. It shows all the past and present jobs and if they have any strikes on their license. There are LOTS of things a person can do to Hide their monies so a lower portion of it is taxed, and legal too. And always ask around, friends and fam and ask them if they know a GOOD tax attorney. Save all reciepts, itemize. Good luck.




Its funny, i cant afford all this stuff cause im poor.
 

beyoku

Golden Member
Aug 20, 2003
1,568
1
71
Originally posted by: Stunt
Originally posted by: beyoku
They get me for about 30 odd percent and i live in the United States. I have no children and I am single. I do have a tax write off - house. This will be my fist year filing after my purchase lets see what happens.

BTW - If you do make good money and your sigle, consider maxing out your IRA - or "Thrift Savings Plan" i think they call it in Canada. Also consider making a higher percentage contribution to your 401k or employee sponsored plan. On a side note you sound suprised. I have been working since 14 years of age. So I cant say i am suprised by any amount of taxation.....Until i hit 6 figures that is.
Thanks for the congrats :beer:

I hear you with the taxes thing, i get the complaining all the time from my dad.
He spends over $100k on income tax alone, you don't want to know how much they ream him on his capital gains and dividends.

Ah well...gotta pay "the man" :p

Well i hear thats one thing the bush tax cut was for long term and short term dividends.
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
My capital gains and dividends are taxed at ~15%.
Dad gets 23% on capital gains and 32% on dividends.
 

Drakkon

Diamond Member
Aug 14, 2001
8,401
1
0
im also in the single guy, no house, no family club. I have tried to stay ahead of the game by throwing everything i can into my 401K and money into accounts to earn some interest back. Still getting paid enough im in that bracket where they bend you over and stick it in deep (~33% last year)
Wheres the flat tax when ya want it? 15% across the board...bring back Teve Torbes!!!
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
If I were getting paid 1% more, I'd be in the next tax bracket with ~17% on CG and Div.
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
Originally posted by: Train
Originally posted by: Stunt
Originally posted by: Train
Whats sales tax up in Canada? Isn't it also higher than most places in the US?
It's 14-15% (7% PST, 7%GST)
holy crap thats high, whats GST/PST?
General sales tax (federal), Provincial sales tax.

The current government promised to get rid of GST 14 years ago...lol :D
 

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
One good paycheck (and the subsequent shock at the realization between gross vs. net) is usually all it takes...