Here are the rates from the E&Y Tax Calculator, as updated to include legislation to May 8, 2008.
Clawbacks are not included; I am hopeful that at some point I will be able to get some authoritative data on the effects of clawbacks, but have not found anything credible … please contact me if you do know of any credible public sources!
| Investors | Taxable Income | Marginal Rate on Interest | Marginal Rate on Dividends | Equivalency Factor |
| Widows & Orphans | $30,000 | 20.24% | 0.00% | 1.25 |
| Professionals | $75,000 | 32.50% | 4.40% | 1.42 |
| Plutocrats | $150,000 | 43.70% | 18.47% | 1.45 |
Look at those rates, eh? The choice between interest and dividends is roughly the same as in Ontario at all income levels … but I look at the rate on dividends for “professionals” and I just can’t believe my eyes!
The comments to the Ontario update included some discussion of the calculation of the equivalency factor in the presence of the OAS clawback.
[…] Here are the rates from the E&Y Tax Calculator, as updated to include legislation to October 22, 2008. There has been a marginal change since my last post on the topic. […]
[…] Here are the rates from the E&Y Tax Calculator, as updated to include legislation to October 22, 2008. There has been a marginal change since my last post on the topic. […]