Living in a socialist country ? Do your math !

[altabob]

I'm living in Canada, province of Québec. We are a strong socialist province with a lot of benefice/cash for the poor/poor-middle class.

After my second child, my wife was supposed to return to work in September 2013 (new mother here got about 5 month off at 70% salary compensation + another 7 month at 55% salary compensation).

We decide to do our math to see what are all the options we got and we were really surprise to see that if she go to work, 37.5 hrs/week, all year long, she only bring 5600$ net while she gain 25 000$ ! That's right, over 77% in tax !!

Why so heavily taxed ?
Because we're in the middle-poor class. Because we got 2 kids. So every new dollars we got in salary, we got cut in social program.

What's the plan/advantage ?
My wife will not work but we will keep our two daughters at home too. She will not get more time to work on our business but I will not waste time to bring our kids to the day care. I will get more time to work on our business because of this, I will go to work in my slowlane job earlier in the morning, giving me more time to work in our business in the afternoon.
Also, my wife will take 2 other kids part time so ours daughters are not only with each other all the time, they need to socialize a bit too. We we'll put this additional revenue in our corporation (open from a past failure) and be taxed at 18% instead of 77%. That mean more $$ to invest in our business.

Is it for you ?
Are you're living in a socialist country, able to live a frugal life style while you work you're way to the top(frankly its not that hard when you're 100% commitment to you're project) and having a supporting wife ?

If you live in Quebec, here the tool I use to calculate our real revenue, if not, I bet there something similar in your country
Calculette_fr.swf

Please, do you math !

 

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[Runum]

I'm living in Canada, province of Québec. We are a strong socialist province with a lot of benefice/cash for the poor/poor-middle class.

After my second child, my wife was supposed to return to work in September 2013 (new mother here got about 5 month off at 70% salary compensation + another 7 month at 55% salary compensation).

We decide to do our math to see what are all the options we got and we were really surprise to see that if she go to work, 37.5 hrs/week, all year long, she only bring 5600$ net while she gain 25 000$ ! That's right, over 77% in tax !!

Why so heavily taxed ?
Because we're in the middle-poor class. Because we got 2 kids. So every new dollars we got in salary, we got cut in social program.

What's the plan/advantage ?
My wife will not work but we will keep our two daughters at home too. She will not get more time to work on our business but I will not waste time to bring our kids to the day care. I will get more time to work on our business because of this, I will go to work in my slowlane job earlier in the morning, giving me more time to work in our business in the afternoon.
Also, my wife will take 2 other kids part time so ours daughters are not only with each other all the time, they need to socialize a bit too. We we'll put this additional revenue in our corporation (open from a past failure) and be taxed at 18% instead of 77%. That mean more $$ to invest in our business.

Is it for you ?
Are you're living in a socialist country, able to live a frugal life style while you work you're way to the top(frankly its not that hard when you're 100% commitment to you're project) and having a supporting wife ?

If you live in Quebec, here the tool I use to calculate our real revenue, if not, I bet there something similar in your country
Calculette_fr.swf

Please, do you math !

You did state that you would try to find something to post about that would help the forum. It is tough to stick your neck out and take a chance. It is noticed and appreciated.

In our responses please remember our no political discussions rule.

Analyzing numbers, benefit/cost can be OK.

 

[goodfella]

move out of Quebec, politically its one of the worst provinces in Canada.

 

[altabob]

move out of Quebec, politically its one of the worst provinces in Canada.

In our responses please remember our no political discussions rule.

...

 

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[DeletedUser394]

Yo, no politics.. I fixed it for ya'

move out of Quebec, economically, and in every other word that ends in 'ally', its the worst province in Canada.

 

[Runum]

I had heard last week about Canadian mothers getting 12 months of maternity leave. Wow. Does it show to be of any psychological/emotional benefit to the mother and child?

 

[OzGrinder]

12 months of maternity leave

Madness.

Have a look at what they are proposing here:
"Mr Abbott has won praise in some quarters for offering new mothers 26 weeks' paid parental leave at their full wage, up to a maximum of $150,000, and funding it with a 1.5 per cent levy on the nation's biggest companies."

Abbott is the leader of our conservative, right wing, major political party. This policy is part of their election platform. I still can't get over the fact that this is a policy coming from our right wing party...

Can you imagine getting paid $75k for 6 months of no work simply for giving birth... have 3 kids and that's 1.5 years of no work for a whopping $225k! Fastlane!

 

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[PopEmersen]

Thats right wing? Holy cow.

 

[altabob]

I had heard last week about Canadian mothers getting 12 months of maternity leave. Wow. Does it show to be of any psychological/emotional benefit to the mother and child?

In our case, for my wife, it's a big advantage. She can't imagine leaving our childs to go to work after 3/6 months. Just thinking that a stranger is taking care/raising our new baby, while she's working, make her feel really bad. We made the choice to have childrens, we want to take care of them and having a full year off is a blessing for us.

 

[Tobraq44]

Any idea about any specific place related to Quebec??

 

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[Vigilante]

My wife stays home permanently. Thats what capitalism can do.

 

[Kak]

Socialism is wrong. You may see some kind of safety net so you can take no risks. I see a collectivist culture that does not foster, reward or sustain individualism that is required for entrepreneurship, business and prosperity.

The reality is your government is coddeling you just like these kids that live with their parents that dont do anything. The real producers are getting screwed.

Good luck with that.

 

[poro78]

Agreed.
I live in Finland, a country which has too good social security. Education is free, health care system is cheap and excellent.
Ok, these are all great things when you're just a kid or get sick and/or can't take care of yourself.

The bad side of this is when you get unemployed - you get almost as much money just by being lazy and filling some forms than taking a part-time or temporary job. (So you'll just wait for that perfect full-time job, that will grant you much more money.)
And of course this social system is financed with taxes - leading to high tax rates.

So this is making people passive - here's the worst part of this - workers have these benefits, but entrepreneurship will leave you out of these.
Meaning you'll be only paying taxes to feed the monster, but won't be part of the system during the bad times (Only after you have a decent paperwork burial for your company) while the poor families can apply for some kind of support.

I guess that's why so many people with good ideas are hesitating starting a business.
When you have benefits that favor laziness - risks don't sound too appealing. :coco:

But I've always been fighting the system, accepting part-time jobs and harming my wallet - at least these jobs gave me experience and contacts.
And I'm continuing my battle until I find a way out of this system that favors the slow lane and the sidewalk.

 

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[Saigo]

I'm from France, I can relate to your comment.

 

[Mbc]

I'm living in Canada, province of Québec. We are a strong socialist province with a lot of benefice/cash for the poor/poor-middle class.

After my second child, my wife was supposed to return to work in September 2013 (new mother here got about 5 month off at 70% salary compensation + another 7 month at 55% salary compensation).

We decide to do our math to see what are all the options we got and we were really surprise to see that if she go to work, 37.5 hrs/week, all year long, she only bring 5600$ net while she gain 25 000$ ! That's right, over 77% in tax !!

Why so heavily taxed ?
Because we're in the middle-poor class. Because we got 2 kids. So every new dollars we got in salary, we got cut in social program.

What's the plan/advantage ?
My wife will not work but we will keep our two daughters at home too. She will not get more time to work on our business but I will not waste time to bring our kids to the day care. I will get more time to work on our business because of this, I will go to work in my slowlane job earlier in the morning, giving me more time to work in our business in the afternoon.
Also, my wife will take 2 other kids part time so ours daughters are not only with each other all the time, they need to socialize a bit too. We we'll put this additional revenue in our corporation (open from a past failure) and be taxed at 18% instead of 77%. That mean more $$ to invest in our business.

Is it for you ?
Are you're living in a socialist country, able to live a frugal life style while you work you're way to the top(frankly its not that hard when you're 100% commitment to you're project) and having a supporting wife ?

If you live in Quebec, here the tool I use to calculate our real revenue, if not, I bet there something similar in your country
Calculette_fr.swf

Please, do you math !

Are you sure about your math? You know that when you move up into a new tax bracket you only pay the higher percentage on the revenue beyond the lower bracket. For example if you pay 30% tax from 25k-40k and 35% tax from 40k-60k; if you make 50k, you pay 30% of 40k, then 35% on the remaining 10k.
I'm from Montreal and nobody pays 77% tax, especially when you're making 25k/year and have 2 kids.
Here are the tax brackets: http://www.revenuquebec.ca/en/citoyen/impots/rens_comp/taux.aspx

And besides if we/you don't give 30-50% of our money to the gov how will they pay the mafia?

 

[Windsurfer]

"A society that chooses between capitalism and socialism does not choose between two social systems; it chooses between social cooperation and the disintegration of society. Socialism is not an alternative to capitalism; it is an alternative to any system under which men can live as human beings."
- Ludwig Von Mises

 

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[altabob]

Are you sure about your math? You know that when you move up into a new tax bracket you only pay the higher percentage on the revenue beyond the lower bracket. For example if you pay 30% tax from 25k-40k and 35% tax from 40k-60k; if you make 50k, you pay 30% of 40k, then 35% on the remaining 10k.
I'm from Montreal and nobody pays 77% tax, especially when you're making 25k/year and have 2 kids.
Here are the tax brackets: http://www.revenuquebec.ca/en/citoyen/impots/rens_comp/taux.aspx

And besides if we/you don't give 30-50% of our money to the gov how will they pay the mafia?

You're right about the tax and this table is the right info but it doesnt count all the tax benefit when you have kid(s)

I dont pay 77% in taxe right now, but if my personal revenu go 1$ up, this dollar will be tax at 77%. Thats why we put all new source of revenu in our company.

You can also check this graph and see the real marginal tax rate with 2 kids

http://www.cqff.com/claude_laferriere/courbes2013/2013-courbe-202.pdf