> And this was at least 20 years ago now, but my Mum's friend got a fifty cent raise at work, and saw her biweekly pay > cheque drop because she now got taxed at the next income level, having been just below the line dividing the two > brackets."
That can't possibly be due to the way the income tax system works in Canada. Perhaps she had to start to start paying some new insurance premium or something because of an arbitrary cut-off or something -- but that would be an issue with her employer, not the tax system.
I've never been on worker's comp before, but if you're taking home about the same I would imagine it is because you're not paying for (but are correspondingly unable to benefit from) things like CPP and EI.
The tax system is pretty complex as a whole but the way it applies to employment earnings on payroll is pretty straightforward and fair IMO -- those who can pay more, do pay more on their extra income.
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Date: 2014-01-28 07:45 pm (UTC)> cheque drop because she now got taxed at the next income level, having been just below the line dividing the two
> brackets."
That can't possibly be due to the way the income tax system works in Canada. Perhaps she had to start to start paying some new insurance premium or something because of an arbitrary cut-off or something -- but that would be an issue with her employer, not the tax system.
I've never been on worker's comp before, but if you're taking home about the same I would imagine it is because you're not paying for (but are correspondingly unable to benefit from) things like CPP and EI.
The tax system is pretty complex as a whole but the way it applies to employment earnings on payroll is pretty straightforward and fair IMO -- those who can pay more, do pay more on their extra income.