Last month's puzzle (April/08)
Here is my suggestion for a simple tax system:
Federal tax will be 10% of taxable income, and provincial tax 8% of taxable income. Two separate tax returns will be filed, one federal and one provincial, each with only 4 lines: gross income - deduction - taxable income - tax payable.
On the federal return, the only deduction from gross income is the amount of provincial tax paid, and on the provincial return, the only deduction is the amount of federal tax paid.
If your gross income is $49,600, how much federal tax would you pay, and how much provincial tax?
federal: $4,600 - provincial: $3,600
Federal tax will be 10% of taxable income, and provincial tax 8% of taxable income. Two separate tax returns will be filed, one federal and one provincial, each with only 4 lines: gross income - deduction - taxable income - tax payable.
On the federal return, the only deduction from gross income is the amount of provincial tax paid, and on the provincial return, the only deduction is the amount of federal tax paid.
If your gross income is $49,600, how much federal tax would you pay, and how much provincial tax?
federal: $4,600 - provincial: $3,600
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Last updated: April 29, 2008
