TAX TAX TAX and more TAX

[UCGal]

[quote=flu]
Actually, many canadians at the border do just this. They get all their auto repair, big purchases done in the States to escape all the VAT/provicial taxes. Of course, they have to be careful about re-entry into canada, because if it’s so obvious, they end up paying customs at the border.
[/quote]

When I was a kid my dad used to get auto body work, and car paint jobs down in TJ. He got busted and had to pay taxes once, when crossing the border – the border patrol agent smelled the fresh paint on the beat old Ford Cortina.

I lived in Bellingham for 3 years. (US side, just south of Vancouver, BC). The mall there, Bellis Fair, used to ask customers if they needed/wanted the bags/shoe boxes, etc… It was a policy developed after realizing all the Canadian shoppers were dumping the tags/bags/boxes in the parking lot.

I was there 2 weeks ago visiting friends. I asked if the malls were still overrun with Canadians shopping – the answer was no – the exchange rate precludes it. (I lived there in the early 90’s). They still come into Blaine for cheap gas though.

People will go to measures to save sales taxes – but there’s always a risk of being caught. My dad learned that the hard way. I’ve had to pay duty when bringing wine back from Italy… The government will try to collect. (This was pre-9/11 when you could carry liquids on a plane as carry on.)

[SK in CV]

[quote=captcha]

That’s possible. I assumed 27% federal tax (some was taxed at 25%, some at 28%), 10% CA, $3K credit for three kids, $6K in education expenses for my wife and $2K for me. I had to pay a small fine since I owed $12K, combined.

It felt bad, the side business has little growth potential, I spent most of my ‘free’ time on it and I probably made less than $10/hour, after taxes.[/quote]

Biggest flaw in the calculation is with regards to the education costs. The most you can get is a $2,000 credit or a $4,000 deduction, regardless of how much you spend.

And in order to go from full child tax credits of $1,000 per child to zero, your income has to go up by $20,000 per child. 3 kids, thats $60,000 of additional income needed in order to wipe out the credit entirely. Adds about 5% to your effective tax rate.

27% federal, 10% state, 5% child care credit, 14% effective self employment tax rate, maximum of about 2% for the tuition credits, total of 58%.

[SK in CV]

[quote=captcha]

That’s possible. I assumed 27% federal tax (some was taxed at 25%, some at 28%), 10% CA, $3K credit for three kids, $6K in education expenses for my wife and $2K for me. I had to pay a small fine since I owed $12K, combined.

It felt bad, the side business has little growth potential, I spent most of my ‘free’ time on it and I probably made less than $10/hour, after taxes.[/quote]

Biggest flaw in the calculation is with regards to the education costs. The most you can get is a $2,000 credit or a $4,000 deduction, regardless of how much you spend.

And in order to go from full child tax credits of $1,000 per child to zero, your income has to go up by $20,000 per child. 3 kids, thats $60,000 of additional income needed in order to wipe out the credit entirely. Adds about 5% to your effective tax rate.

27% federal, 10% state, 5% child care credit, 14% effective self employment tax rate, maximum of about 2% for the tuition credits, total of 58%.

[SK in CV]

[quote=captcha]

That’s possible. I assumed 27% federal tax (some was taxed at 25%, some at 28%), 10% CA, $3K credit for three kids, $6K in education expenses for my wife and $2K for me. I had to pay a small fine since I owed $12K, combined.

It felt bad, the side business has little growth potential, I spent most of my ‘free’ time on it and I probably made less than $10/hour, after taxes.[/quote]

Biggest flaw in the calculation is with regards to the education costs. The most you can get is a $2,000 credit or a $4,000 deduction, regardless of how much you spend.

And in order to go from full child tax credits of $1,000 per child to zero, your income has to go up by $20,000 per child. 3 kids, thats $60,000 of additional income needed in order to wipe out the credit entirely. Adds about 5% to your effective tax rate.

27% federal, 10% state, 5% child care credit, 14% effective self employment tax rate, maximum of about 2% for the tuition credits, total of 58%.

[SK in CV]

[quote=captcha]

That’s possible. I assumed 27% federal tax (some was taxed at 25%, some at 28%), 10% CA, $3K credit for three kids, $6K in education expenses for my wife and $2K for me. I had to pay a small fine since I owed $12K, combined.

It felt bad, the side business has little growth potential, I spent most of my ‘free’ time on it and I probably made less than $10/hour, after taxes.[/quote]

Biggest flaw in the calculation is with regards to the education costs. The most you can get is a $2,000 credit or a $4,000 deduction, regardless of how much you spend.

And in order to go from full child tax credits of $1,000 per child to zero, your income has to go up by $20,000 per child. 3 kids, thats $60,000 of additional income needed in order to wipe out the credit entirely. Adds about 5% to your effective tax rate.

27% federal, 10% state, 5% child care credit, 14% effective self employment tax rate, maximum of about 2% for the tuition credits, total of 58%.

[SK in CV]

[quote=captcha]

That’s possible. I assumed 27% federal tax (some was taxed at 25%, some at 28%), 10% CA, $3K credit for three kids, $6K in education expenses for my wife and $2K for me. I had to pay a small fine since I owed $12K, combined.

It felt bad, the side business has little growth potential, I spent most of my ‘free’ time on it and I probably made less than $10/hour, after taxes.[/quote]

Biggest flaw in the calculation is with regards to the education costs. The most you can get is a $2,000 credit or a $4,000 deduction, regardless of how much you spend.

And in order to go from full child tax credits of $1,000 per child to zero, your income has to go up by $20,000 per child. 3 kids, thats $60,000 of additional income needed in order to wipe out the credit entirely. Adds about 5% to your effective tax rate.

27% federal, 10% state, 5% child care credit, 14% effective self employment tax rate, maximum of about 2% for the tuition credits, total of 58%.

[surveyor]

[quote=sdduuuude]
You and the other guy are trying to make it sound like “progressive tax” means “tax I like” and “regressive tax” as “tax I don’t like” which is unacceptable.

Know what a term means and use it properly or don’t bring it up.[/quote]

Not the first time this has been said to BriBri.

LOL.

[surveyor]

[quote=sdduuuude]
You and the other guy are trying to make it sound like “progressive tax” means “tax I like” and “regressive tax” as “tax I don’t like” which is unacceptable.

Know what a term means and use it properly or don’t bring it up.[/quote]

Not the first time this has been said to BriBri.

LOL.

[surveyor]

[quote=sdduuuude]
You and the other guy are trying to make it sound like “progressive tax” means “tax I like” and “regressive tax” as “tax I don’t like” which is unacceptable.

Know what a term means and use it properly or don’t bring it up.[/quote]

Not the first time this has been said to BriBri.

LOL.

[surveyor]

[quote=sdduuuude]
You and the other guy are trying to make it sound like “progressive tax” means “tax I like” and “regressive tax” as “tax I don’t like” which is unacceptable.

Know what a term means and use it properly or don’t bring it up.[/quote]

Not the first time this has been said to BriBri.

LOL.

[surveyor]

[quote=sdduuuude]
You and the other guy are trying to make it sound like “progressive tax” means “tax I like” and “regressive tax” as “tax I don’t like” which is unacceptable.

Know what a term means and use it properly or don’t bring it up.[/quote]

Not the first time this has been said to BriBri.

LOL.

[sdduuuude]

[quote=surveyor][quote=sdduuuude]
You and the other guy are trying to make it sound like “progressive tax” means “tax I like” and “regressive tax” as “tax I don’t like” which is unacceptable.

Know what a term means and use it properly or don’t bring it up.[/quote]

Not the first time this has been said to BriBri.

LOL.[/quote]

brian significantly reduces the value of this site for me, filling up interesting threads with the same stupid shit over and over again with no basis of thought behind it. Hoping he goes the way of powayseller soon.

[sdduuuude]

[quote=surveyor][quote=sdduuuude]
You and the other guy are trying to make it sound like “progressive tax” means “tax I like” and “regressive tax” as “tax I don’t like” which is unacceptable.

Know what a term means and use it properly or don’t bring it up.[/quote]

Not the first time this has been said to BriBri.

LOL.[/quote]

brian significantly reduces the value of this site for me, filling up interesting threads with the same stupid shit over and over again with no basis of thought behind it. Hoping he goes the way of powayseller soon.

[sdduuuude]

[quote=surveyor][quote=sdduuuude]
You and the other guy are trying to make it sound like “progressive tax” means “tax I like” and “regressive tax” as “tax I don’t like” which is unacceptable.

Know what a term means and use it properly or don’t bring it up.[/quote]

Not the first time this has been said to BriBri.

LOL.[/quote]

brian significantly reduces the value of this site for me, filling up interesting threads with the same stupid shit over and over again with no basis of thought behind it. Hoping he goes the way of powayseller soon.

[sdduuuude]

[quote=surveyor][quote=sdduuuude]
You and the other guy are trying to make it sound like “progressive tax” means “tax I like” and “regressive tax” as “tax I don’t like” which is unacceptable.

Know what a term means and use it properly or don’t bring it up.[/quote]

Not the first time this has been said to BriBri.

LOL.[/quote]

brian significantly reduces the value of this site for me, filling up interesting threads with the same stupid shit over and over again with no basis of thought behind it. Hoping he goes the way of powayseller soon.

[Author]

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