Wednesday, August 22, 2007

Is Middle Class Actually Better Off?

We commonly have this discussion at work regarding the middle class and are we actually any better off? I remember reading a news story earlier this year where it stated that if you earned $50,000 a year take home after all payroll taxes as well as GST and PST you actual take home is more in the range of $30,000! Now how I have to ask is a family of 5 suppose to live on an income of $30,000? That's only $6000 per person!

It's absolutely ridiculous! Now let's say my wife was to leave me and take with her our 3 children, based upon her earning of $6000 last year. Her child tax credit would jump from $220 a month to $780. Child support of $946 per month due to her. She would also receive a GST check paided out quarterly of $212 after filing her next year taxes. She would also fall under the low income bracket for taxes due to child tax credit not being taxable in Canada she would only have to pay taxes on the $6000 plus the child support of $11352 bring her total to $17352 after tax $14402

+ gst of $848 for the year
+ child tax credit of $9360
bring her total income after tax to $24610 for the year.

Without even figuring in probably a sizable tax return for the year and access to numerous government programs which are not available to us currently due to all programs looking at before tax income. She would actually be better off without me. Now in no way am I saying that single mothers or quote unquote low income families have it easy so please don't misinterpret it. I'm just showing how again the quote unquote middle class isn't always better off and maybe it's time for Canada to re-evaluate it's LICO.

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