Income Tax in Quebec: Who’s Really Paying The Bill?

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This morning, on my way to work, I saw this infographic in the Metro newspaper . I thought it was worth sharing it with you guys. The issue of income tax is a very sensitive one, as it represents the wealth redistribution from the rich to the poor through social service and public infrastructure. The particular case of Quebec is enlightening when you actually see the numbers. In a province where high-earning individuals are taxed up to 50% of their income, some have argued that it makes the province unattractive to professionals and businesses. On the other side, wealthy individuals benefit from several ingenious tax shield options, so who is really paying the highest bill?

The infographic below shows that in 2011:

As an employee:

  • If you earned less than 50K per year, you paid on average $1,146 in income tax
  • If you earned between 50K and less than 100K, you paid on average $7,307 in income tax
  • If you earned between 100K and less than 150K, you paid on average $16,410 in income tax
  • If you earned more than 150K, you paid on average $46,847 in income tax (this includes millionaires!)

As a business:

  • Small businesses paid on average $3,687 in income tax
  • Medium businesses paid on average $73,684 in income tax
  • Large businesses paid on average $555,555 in income tax

If you are an avid reader of my blog, chances are you are part of the middle class (50-150K) or at least you aspire to be part of it. That category is probably the least advantaged, because you’re essentially paying two to five times as much as the average small business, and maybe even more than some higher-income individuals (150K+) who may benefit from lower capital gains tax rates.  Remember when Warren Buffet said he’s paying less taxes than his secretary (as a percentage of income)?

Food for thought…

Income tax in quebec

Credits: Arnaud Baty / Commission d’Examen sur la Fiscalite

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