Changing provinces for tax savings

[Square Root]

i assume Dave knows how to calculate total tax owing and knows the diff between total tax and maximum marginal tax rate. To save 100k per year he would need about $1million in gross earnings assuming taxed as regular income.
I wouldn't consider Ontario much of a tax haven with the new "surtax" on incomes over $500k now in effect. Ont's max marg rate is very close to 50% the max marg rate on divs is over 30% I think. Alberta's comparable rate is 39% and 19%. Not to mention no sales tax in Alberta. ........Alberta bound anyone?
edit: Actually with he facts now in my possession, it looks more like $750k or so in gross income to save $100k per year by moving to Alberta. This is likely unsustainable and highly unlikely to happen IMHO. Whatever does transpire will still be awful.

[brad]

A compromise is already in the works.

FYI, the rationale behind all this is that the PQ wants to eliminate the flat $200 health tax levied on everyone (rich and poor alike) in Québec. That leaves a revenue shortfall, which they have to compensate for somehow or else reduce services. We'll see what they come up with.

[Square Root]

The story in the G&M this AM implies they want to raise the rate by 7% points. This is hard to believe as it will take the max marg rate to around 55-56% for those earning more than $250k. Surely this is much more than the health care levy? Truly awful policy. Kind of what you expect from these guys though.
Edit: Actually it's 60% max marg rate! Incredible.

[brad]

The Québec marginal rate they proposed would be 28% for people earning more than $130K and 31% for those earning more than $250K.

But as I said above, that's old news now. According to La Presse this morning, a compromise is already being discussed.

[Square Root]

The Québec marginal rate they proposed would be 28% for people earning more than $130K and 31% for those earning more than $250K.

But as I said above, that's old news now. According to La Presse this morning, a compromise is already being discussed.

That's the provincial rate. Need to add on the federal rate(I think you still pay federal taxes in la belle province?) The max federal rate is 29% . That takes it to 60% Vs 39% in Wild Rose Country. Put another way, I pay 10% flat provincial tax to Alberta and they want high earners in Quebec to pay 31% at the margin!! OMG That can't be right. Compromise indeed.

[brad]

That's the provincial rate. Need to add on the federal rate

Sorry I assumed that goes without saying. Yes, it's high, but hey, we get to live in Québec. You'd have to quintuple my salary or maybe tax me at 100% to get me to move anywhere else in Canada ;-) Although I would consider Newfoundland...it's just a little far from all my friends and family.

[Four Pillars]

i assume Dave knows how to calculate total tax owing and knows the diff between total tax and maximum marginal tax rate.

Never assume....

[kcowan]

Dave
Don't forget to factor in the higher costs of housing in Alta. Esp Calgary and Canmore.
Keith

[Square Root]

Dave
Don't forget to factor in the higher costs of housing in Alta. Esp Calgary and Canmore.
Keith

Agree if you buy, but a year or two of renting can be easily financd with $100k per year. He might even like it. I do.

[Charlie]

Just a note....if it's professional income (self employed), rather than salary income, it's taxed in the province earned -- regardless of where you reside on Dec 31. If you move to Alberta in December, 11/12 of that income would generally still be subject to Quebec rates. And have you been to Alberta in December ??? brrrrrrrrrrrrrrr!

But basically, you have to move. Sell your PQ house, acquire one (or long term lease) in Alberta, move the kids, establish ties etc.