[ASAP]

Originally Posted by DJKapeesh

THIS

I should be well over 6 figures working in SAP but I have chosen to stay at a Pharma Company in Sunny South FL with no travel, and set hours to go home. I don't have to manage anyone and I don't have to travel more than 5 miles to work and home. I get lots of vacation and I'm in Florida soooo. Difference is, I probably could make at least $20,000 more if I left

Someone on this forum once told me:
"Once you get over $70k - $75k the standard of living really doesn't change, what changes is the length of time to save for things." or something like that

I think this is highly questionable because it doesn't take into account where you live. I live in downtown Miami and that average is far below median income... and when average rent is 2K, that number really becomes meaningless. I personally think at double that value (on average) ~$150K is where things start to get easier... notable exceptions would be SFO or perhaps NYC but those are very serious outliers... IMHO if you can't do well on 150K a year outside of SFO / NYC... you really need to reconsider what you are doing with your money.

[JohnnyCanuck]

My salary is public record and I still won't fill out this poll.

[jmg]

Originally Posted by DJKapeesh

THIS

I should be well over 6 figures working in SAP but I have chosen to stay at a Pharma Company in Sunny South FL with no travel, and set hours to go home. I don't have to manage anyone and I don't have to travel more than 5 miles to work and home. I get lots of vacation and I'm in Florida soooo. Difference is, I probably could make at least $20,000 more if I left

Someone on this forum once told me:
"Once you get over $70k - $75k the standard of living really doesn't change, what changes is the length of time to save for things." or something like that

$75k/yr won't get you far in my city. Hell, $75k/yr is what some people pay in taxes if they aren't incorporated.

[dreamingat30fps]

Originally Posted by ASAP

I think this is highly questionable because it doesn't take into account where you live. I live in downtown Miami and that average is far below median income... and when average rent is 2K, that number really becomes meaningless. I personally think at double that value (on average) ~$150K is where things start to get easier... notable exceptions would be SFO or perhaps NYC but those are very serious outliers... IMHO if you can't do well on 150K a year outside of SFO / NYC... you really need to reconsider what you are doing with your money.

Originally Posted by jmg

$75k/yr won't get you far in my city. Hell, $75k/yr is what some people pay in taxes if they aren't incorporated.

So move.

It just comes down to what your priorities are.

[jmg]

Originally Posted by dreamingat30fps

So move.

It just comes down to what your priorities are.

My industry's biggest market is right here. I'm not going anywhere until I retire.

[David70]

Originally Posted by CTinline-six

Not sure I really agree with that logic. There is quite a significant difference making say $150k vs. $300k. Just as there is $40k vs. $80k. One could argue that $40k is the same you just have to save longer.

I think the biggest difference is how you spend it and financial planning. I have a friend who makes $150,000 and his wife makes $100,000+ so combined they make 250,000+. They have no kids, decent cars and decent sized house, but literally can't afford anything. They waste so much money and live paycheck to paycheck. With what they make they could easily be doing very well if they were just smart with their money. Unfortunately this seems normal for a lot of people.

Agree. Wife and I make decent money, live in a pretty inexpensive area, drive reasonably priced cars. The money won't by itself make you happy but if handled correctly and spent reasonably allows us to not worry at all about money, go on vacation when and where we want and will allow us to retire at a pretty young age, all while not being anywhere near the top of this salary list.

Salary by itself is close to meaningless, if you had two kids and lived in Manhattan and compared yourself to the guy in rural Ohio making the same there are drastic differences in the two.

Then if you compare a couple making $150k and needing to spend all they make (standard bills), saving very little, then they make $200k and don't change their spending, they may go from virtually nothing being saved per year to being able to save $30k per year.

[DETRoadster]

Originally Posted by David70

Salary by itself is close to meaningless, if you had two kids and lived in Manhattan and compared yourself to the guy in rural Ohio making the same there are drastic differences in the two.

Then if you compare a couple making $150k and needing to spend all they make (standard bills), saving very little, then they make $200k and don't change their spending, they may go from virtually nothing being saved per year to being able to save $30k per year.

Perhaps a "How much do you save per year" thread is in order!

I agree, what you make is fairly meaningless without further context.

[UncleWede]

Originally Posted by DETRoadster

Perhaps a "How much do you save per year" thread is in order!

I agree, what you make is fairly meaningless without further context.

Oh, sure. Take me from near the top choice in the poll, to the very top choice in the poll.

[///M Power-Belgium]

My salary is 50% . The other 50% is for my homeland Belgium .
So actually I earn 1/2 per year while I work for 2 ..
In other words...I work 6 months for myself and 6 months for Belgium .

A job in the tax-world (Belgium) is a fantastic situation !
Of course I love my country

[Joekerr]

Originally Posted by ///M Power-Belgium

My salary is 50% . The other 50% is for my homeland Belgium .
So actually I earn 1/2 per year while I work for 2 ..
In other words...I work 6 months for myself and 6 months for Belgium .

A job in the tax-world (Belgium) is a fantastic situation !
Of course I love my country

Canada has a top bracket of 53% so we're a little worse. And that's ignoring of course all the other taxes we pay in the form of sales taxes (VAT for you I believe), property taxes, school taxes, tax in the gasoline price, etc.

I wouldn't be surprised if one were to add it all up (and in the top bracket) to be paying 60+% of their income in some form of tax to the government. Where is the incentive to work at that point if every extra dollar you make you only get to keep 40 cents.

It is ridiculous.

[JohnnyCanuck]

Originally Posted by Joekerr

Canada has a top bracket of 53% so we're a little worse.

Try and be factual and don't misrepresent things. Canada has a top marginal federal tax rate of 33% that applies to income over $202,000. You live in Ontario which has a top marginal tax rate of 13.16% on income over $220,000. It's only income earned above that level that is taxed at that rate and, even then, it is dependent on source of income (capital gains, dividend income, etc all receive different tax treatments).

So, if your taxable income is over $220,000 (and that actually requires income of at least $232,000 because of basic exemptions), your average tax rate is 37%. I live in BC where it's 34% because our provincial marginal rates are lower.

However, most people don't earn that kind of income. If you take the average income for an Ontario worker ($50,589), they pay a combined federal/provincial average tax rate of 17%.

[///M Power-Belgium]

Originally Posted by Joekerr

Canada has a top bracket of 53% so we're a little worse. And that's ignoring of course all the other taxes we pay in the form of sales taxes (VAT for you I believe), property taxes, school taxes, tax in the gasoline price, etc.

I wouldn't be surprised if one were to add it all up (and in the top bracket) to be paying 60+% of their income in some form of tax to the government. Where is the incentive to work at that point if every extra dollar you make you only get to keep 40 cents.

It is ridiculous.

Wow ! That's really surprising for Canada !

We are/were never agreed my friend But in this situation I agree with you...
Your/my taxes are INSANE ?!?!

Don't know how the taxes are for your cars in Canada ?
But here is my situation for cars in Belgium..

///M3 E92 (S65 V8)
-Price from the car was 104K Euros .
-We need to pay in Belgium a inscription tax , I paid 5K Euros but for the moment it's 10K Euros
-We need to pay a yearly driver tax ,I pay every year 2,223 Euros .
-If I keep my car 10 years the above tax = X 10 !

I don't know what is cheap in Belgium ,we have insane taxes on everything ( Your VAT is *BTW* in Belgium) and I don't know how people can be motivated in this f@cking country !
On our invoice for water and electricity we have even transport costs ! (no joke)
Actually our situation s@cks for both of us !
For me Belgium is =>

God bless my friend ..

[Joekerr]

Originally Posted by JohnnyCanuck

Try and be factual and don't misrepresent things. Canada has a top marginal federal tax rate of 33% that applies to income over $202,000. You live in Ontario which has a top marginal tax rate of 13.16% on income over $220,000. It's only income earned above that level that is taxed at that rate and, even then, it is dependent on source of income (capital gains, dividend income, etc all receive different tax treatments).

So, if your taxable income is over $220,000 (and that actually requires income of at least $232,000 because of basic exemptions), your average tax rate is 37%. I live in BC where it's 34% because our provincial marginal rates are lower.

However, most people don't earn that kind of income. If you take the average income for an Ontario worker ($50,589), they pay a combined federal/provincial average tax rate of 17%.

If we're being "factual" then you probably should have also mentioned the Ontario surtax which bumps the effective rate even higher.

My statement still stands, Canada does have a top bracket of 53%. Yes, that happens to be in Ontario, and all provinces have different rates, but there is a top bracket in Canada of 53%. Just so happens to be in the wonderful province I happen to live in.

And Belgie said "salary". He didn't say "income", so I saw no need to differentiate between sources of income since we are talking about a salary.

I deal with a number of clients who are either in that bracket, or would be, if not for the ability to defer income within a corporation. Which I'm sure greedy Trudeau can't possibly wait to get his grubby hands on so he can spend, spend, spend.

And my point was, any dollar made once in this bracket is taxed at that rate - so what is the incentive to work for that extra dollar.

[JohnnyCanuck]

Originally Posted by ///M Power-Belgium

Wow ! That's really surprising for Canada !

We are/were never agreed my friend But in this situation I agree with you...
Your/my taxes are INSANE ?!?!

Don't know how the taxes are for your cars in Canada ?
But here is my situation for cars in Belgium..

///M3 E92 (S65 V8)
-Price from the car was 104K Euros .
-We need to pay in Belgium a inscription tax , I paid 5K Euros but for the moment it's 10K Euros
-We need to pay a yearly driver tax ,I pay every year 2,223 Euros .
-If I keep my car 10 years the above tax = X 10 !

I don't know what is cheap in Belgium ,we have insane taxes on everything ( Your VAT is *BTW* in Belgium) and I don't know how people can be motivated in this f@cking country !
On our invoice for water and electricity we have even transport costs ! (no joke)
Actually our situation s@cks for both of us !
For me Belgium is =>

God bless my friend ..

Except he's not right ... not remotely. See my post above yours for a correct explanation of Canadian taxes.

[Joekerr]

Originally Posted by JohnnyCanuck

Except he's not right ... not remotely. See my post above yours for a correct explanation of Canadian taxes.

Going back, I suppose one area where I used an incorrect word was saying that adding it all up (if in the top bracket), I wouldn't be surprised to learn someone was paying 60+% of their income in taxes.

I should not have said income. I should have said instead every additional dollar...that I wouldn't be surprised to see them paying 60% on.

[JohnnyCanuck]

Originally Posted by Joekerr

If we're being "factual" then you probably should have also mentioned the Ontario surtax which bumps the effective rate even higher.

My statement still stands, Canada does have a top bracket of 53%. Yes, that happens to be in Ontario, and all provinces have different rates, but there is a top bracket in Canada of 53%. Just so happens to be in the wonderful province I happen to live in.

And Belgie said "salary". He didn't say "income", so I saw no need to differentiate between sources of income since we are talking about a salary.

I deal with a number of clients who are either in that bracket, or would be, if not for the ability to defer income within a corporation. Which I'm sure greedy Trudeau can't possibly wait to get his grubby hands on so he can spend, spend, spend.

And my point was, any dollar made once in this bracket is taxed at that rate - so what is the incentive to work for that extra dollar.

No, that wasn't your point because you didn't say anything about marginal. You implied that the highest effective tax rate was53% which is the marginal, not average rate. My numbers included the surcharge and are correct.

[Joekerr]

Originally Posted by JohnnyCanuck

No, that wasn't your point because you didn't say anything about marginal. You implied that the highest effective tax rate was53% which is the marginal, not average rate. My numbers included the surcharge and are correct.

What does bracket mean to you? I did not imply or state effective anywhere except in the one example of 60+% where I admitted I used an incorrect word which would imply effective. And I was clearly stating what is the incentive to earn the extra dollar if it will be taxed at 53%. Extra dollar implies marginal and I clearly said top bracket.

Bracket implies marginal. You should know this.

Your numbers with respect to the federal and provincial rates did NOT include the surtax. However, if you were instead referring to the average Ontario salary of $50K and the effective rate of 17% (actually closer to 18% but whatever) being correct, then I'd agree, that is correct. Mostly because there is no surtax on said income due to the amount. So whether you forgot the surtax and just lucked out due to the lower amount or not, I don't know, but if you are going to clearly give federal and provincial rates, I would think at least some mention of the Ontario surtax would have been in order also - which you didn't do. If we're being "factual" that is.

Besides, Belgium also works on a graduated rate basis I believe from a quick google search, so I don't think I'm in any way misleading Belgie. Admittedly, it's obscene how low the income levels are to hit 50% bracket.

[bimmer456]

Thousands of dollars per hour in the stock market.

[seedyrom]

Yeah, but you’ve gotta know when to hold ‘em ....

[XCRN]

And know when to fold 'em...

[wntrsnowg]

[ImolaMoop]

Originally Posted by DJKapeesh

THIS

I should be well over 6 figures working in SAP

How many figures?