Take a moment to ensure you don't fall into the Ontario 100% tax trap

Let me write this all out, as a video is a really really bad way to show your math.

Income:


$25/hour = $52,000. I suppose John could be a contractor that doesn't get either vacation pay of 4% or paid time off...

The Tax Portion


$200 in extra income tax to push him to $48,200 (which we already highlighted he wouldn't be in.)

Based on the CRA website he would be paying:

  • 9.15% to Ontario
  • 20.5% to Canada

That equals 29.65% not the 31% tax bracket mentioned. So the tax paid on that $200 is $59.30 not $62.

The Ontario health premium is $500 per year for an income of $48,200. [source] this is an increase of $25 over $48,000 which pays $475 per year.

So that means instead of a $50 tax it's a $25 tax increase.


I'm tempted to go down the benefits rabbit hole however I've already proved that your claim that he would only earn $88 dollars of the $200 is kinda bullshit.

John would get $115.70 after taxes for that $200.

/r/waterloo Thread Link - youtu.be