I like a flatter income tax as well. However poor people pay a higher percentage of their income due to sales tax and Medicare, SS taxes. After the first 110k or so you don't pay any taxes. Also rich people structure their income so that it shows up as capital gains and gets taxed like an investment at 15% rather than what everyone else pays for doing real work.

How does income tax work in the US? Can someone give me a brief summary? Do you pay a portion to the Federal and a portion to the State you reside in? Is it bracketed?

The only thing I know about US tax law is that you're allowed waaaaaay more deductions than Canadian residents & you pay lower rates.

Differing percentage rates based off of accumulated wealth earned per year including deductions. The highest tax bracket is for individuals who make over 250,000 dollars and is approx. 38%. Additionally most states have income tax codes as well and thus the amount is additionally taxed by another bracketed percentage. Some states like Florida and Texas however, don't have state income taxes. Then you have you standards sales, Social Security, Healthcare taxes that are taken out of every paycheck.

Oh and there are deductions for everything. Especially for businesses and children.

Sales tax does not come out of your paycheck.

Sorry phrased that wrong. Should have put those in two different sentences oops.

Yes @ my sig bumping this thread again

The first page, the JLo vid thread teas

Hillary's not going to fix this by the way, and Trump most likely won't either.

Stocking.

shocking

Thanks! They're fairly similar except the deductions which are very limited here.

In Quebec at the highest tax bracket of >$200,000, your at an effective combined federal and provincial tax rate of approx 53%. Capital gains & dividends are taxed differently though (horrible tax class memories )

Wow 53% is high.... I think income taxes should be capped at 48%.

Yes, Quebec is one of the highest taxed places in the world. Add ~15% sales tax on everything, property taxes, school taxes, taxes on insurance premiums etc...., you're essentially working for the government.

Rich people deserve a reward for making more money. Their taxes should be lowered.

I feel like poor people deserve to pay higher taxes because they make less money.

If you're making like $2000 a month obviously you're gonna pay higher taxes because you would pay practically nothing if it was a smaller percentage.