{"id":10226,"date":"2010-03-23T14:26:32","date_gmt":"2010-03-23T18:26:32","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=10226"},"modified":"2010-03-23T14:26:32","modified_gmt":"2010-03-23T18:26:32","slug":"marginal-tax-rates-bc","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=10226","title":{"rendered":"Marginal Tax Rates: BC"},"content":{"rendered":"

An Assiduous Reader of PrefLetter<\/a> writes in and says:<\/p>\n

I believe your Equivalency Factors for taxes (Table 3 in Preletter March) are wrong for low-income earners.<\/p>\n

The dividend credit can be applied to other income which results in a negative marginal tax rate on dividends. For example, for BC $30,000, 2009 tax year, this is -14.36% (regular income taxed at 20.06%) so
\nequivalency is 1.43.<\/p>\n

This handy website will give you the marginal rate without capping them at 0% like the E&Y calculator does:<\/p>\n

http:\/\/taxtips.ca\/taxrates\/bc.htm<\/a><\/p><\/blockquote>\n

The point is well taken – but unfortunately I do not consider taxtips.ca to be an authoritative source. According to their website<\/a>:<\/p>\n

TaxTips.ca is owned by a small private company located in Cedar, British Columbia. It is prepared by a husband and wife team who are retired from owning and operating a small business, with one being a retired CGA (Certified General Accountant). The goal of the site is to be a reference site for easy to understand tax, financial, and related information.<\/p><\/blockquote>\n

In order to consider a source authoritative I want to see names. I also want to see that the person making a claim has something at stake in the matter and is pronouncing on a subject on which they are earning a living. I consider it highly important in this wonderful world of looney-tunes in which we live that somebody maing a claim get hurt – either directly in the pocketbook, or (as in the case of academics) in reputation – if they make a mistake. And size helps (although I am realistic enough to recognize that it’s no guarantee): Ernst & Young, for instance, will have many opinionated partners who will jump on any egregious or doubtful claim because E&Y’s reputation is their reputation. While this means that many publicly expressed opinions get diluted to the point of uselessness, it does imply that what they do say has a reasonably good probability of being right.<\/p>\n

So, while the Assiduous Reader’s claim has a ring of truth to it, I am – as I always stress – not competent on tax matters and am looking for an authoritative source to substantiate the claim. Any help will be appreciated.<\/p>\n","protected":false},"excerpt":{"rendered":"

An Assiduous Reader of PrefLetter writes in and says: I believe your Equivalency Factors for taxes (Table 3 in Preletter March) are wrong for low-income earners. The dividend credit can be applied to other income …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,23,30],"tags":[],"class_list":["post-10226","post","type-post","status-publish","format-standard","hentry","category-prefletter","category-reader-initiated-comments","category-taxation"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10226"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10226\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}