Tax filing time
One of my weekend projects was doing the family taxes. The good news: my effective income tax rate was 16.1%, which seems pretty reasonable to me. My boss, who makes more money, maxed out his RRSP contibutions and got his effective rate down to 14%. These numbers would creep up if we add in CPP and EI (although with CPP anyway this is money I am definitely going to get back in my old age) but my effective rate inclusive of payroll taxes is still less than 20%.
I also did a calculation about what my taxes would have been at the effective rate I paid averaged over 1998-2000, the years before big federal and provincial income tax cuts. Even though I earned substantially less money back then, at those rates, I would have paid an additional $3,600 in income tax in 2007.
As for process, I will repeat my gripe from last year. The federal government should allow everyone to file their taxes electronically, not just those who pony up for official tax preparation software. For most people like me who have rather simple returns, this would be much easier. As it is, I always discover something that requires me to go back and redo most of the calculations on the form. This wastes a lot of my time, and I’m good with numbers.