Canada is the Best

[Russ]

9 hours ago, canucklehead44 said:

The frustrating thing with Canada is all the wealth is created through real estate - someone is better off making $60K pear year buying a house in 2005 vs making $200K per year buying a house post 2017 but our tax structure is so heavily weighted to income tax. Property tax is so insanely cheap and a lot of money circulating is off of tax free real estate gains. Also high salaried workers are using far less public services, medical services etc. So a baby boomer can make $350K per year in tax free gains contributing $3K in property taxes while using up far more services while a young high income worker is paying over a hundred thousand in income tax, using no services, and can't even afford to get into the housing market anymore. If you use the 3x rule at $216k any home over $650K would be unaffordable yet the average home in Canada is around $800K. When you consider a lot of those high paid jobs would be in the GTA where the average home is over $2 million it is so out of line. 

The top tax bracket should be shifted from $216K to $539K to match the US and property tax should be 2-3x higher (their average home is around $430K). 

On an approx $1M home I pay $3K per year in property tax. On the other side of the border on a $1M home in Michigan I'd be paying $15,400 per year and in New York $17,720

We do have a lot of other taxes built into our system that the states doesn't.  Theres no income tax in 9 states so they make up that amount with the high property taxes.  Yea you can tax my home more but then I don't want to pay taxes to the BC government.  It balances out in the end. 

[RUPERTKBD]

On 5/27/2022 at 7:22 AM, canucklehead44 said:

The frustrating thing with Canada is all the wealth is created through real estate - someone is better off making $60K pear year buying a house in 2005 vs making $200K per year buying a house post 2017 but our tax structure is so heavily weighted to income tax. Property tax is so insanely cheap and a lot of money circulating is off of tax free real estate gains. Also high salaried workers are using far less public services, medical services etc. So a baby boomer can make $350K per year in tax free gains contributing $3K in property taxes while using up far more services while a young high income worker is paying over a hundred thousand in income tax, using no services, and can't even afford to get into the housing market anymore. If you use the 3x rule at $216k any home over $650K would be unaffordable yet the average home in Canada is around $800K. When you consider a lot of those high paid jobs would be in the GTA where the average home is over $2 million it is so out of line. 

The top tax bracket should be shifted from $216K to $539K to match the US and property tax should be 2-3x higher (their average home is around $430K). 

On an approx $1M home I pay $3K per year in property tax. On the other side of the border on a $1M home in Michigan I'd be paying $15,400 per year and in New York $17,720

Property taxes vary depending on where you live in Canada, as well....

 

Here in Prince Rupert, the City has been trying to make up for taxes lost when the mill shut down by foisting the burden on homeowners....

 

My property taxes are similar to yours, ($2800 and change) but the property is assessed at $389k....