{"id":14255,"date":"2011-03-02T19:14:40","date_gmt":"2011-03-02T23:14:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=14255"},"modified":"2011-03-02T19:14:40","modified_gmt":"2011-03-02T23:14:40","slug":"marginal-tax-rates-ontario-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=14255","title":{"rendered":"Marginal Tax Rates: Ontario 2011"},"content":{"rendered":"<p>E&#038;Y <a href=\"http:\/\/www.ey.com\/CA\/en\/Services\/Tax\/Tax-Calculators-2010-Personal-Tax\">have analyzed<\/a> Ontario tax rates as of 2011-1-15 and we may draw some conclusions from these data:<\/p>\n<table border=\"1\">\n<tr>\n<td>Investors<\/td>\n<td>Taxable Income<\/td>\n<td>Marginal Rate on Interest<\/td>\n<td>Marginal Rate on Dividends<\/td>\n<td>Equivalency Factor<\/td>\n<\/tr>\n<tr>\n<td>Widows &#038; Orphans<\/td>\n<td>$30,000<\/td>\n<td>20.05%<\/td>\n<td>0.00%<\/td>\n<td>1.25<\/td>\n<\/tr>\n<tr>\n<td>Professionals<\/td>\n<td>$75,000<\/td>\n<td>32.98%<\/td>\n<td>11.72%<\/td>\n<td>1.32<\/td>\n<\/tr>\n<tr>\n<td>Plutocrats<\/td>\n<td>$150,000<\/td>\n<td>46.41%<\/td>\n<td>28.19%<\/td>\n<td>1.34<\/td>\n<\/tr>\n<\/table>\n<p>Equivalency factors have declined slightly since my <a href=\"http:\/\/www.prefblog.com\/?p=10925\">2010 post on this topic<\/a><\/p>\n<p>Two nuances should be noted. Firstly, E&#038;Y appears to have put a floor of 0.00% on the published marginal tax rate for dividends; in fact, the <a href=\"http:\/\/www.prefblog.com\/?p=10226#comments\">tax on dividends can be negative<\/a> if the taxpayer has other income available to soak up the excess dividend tax credit. This will increase the equivalency factor for &#8220;Widows &#038; Orphans&#8221;.<\/p>\n<p>Secondly, if the taxpayer is subject to OAS clawback, the <a href=\"http:\/\/www.prefblog.com\/?p=2372&#038;cpage=1#comment-27981\">equivalency factor will decline by about 0.1<\/a>. It should be noted that this figure is an extremely rough estimate and is based solely on the direct income tax effect &#8211; there may be other net-income-tested benefits to the taxpayer, such as drug plans, which will exacerbate the decline.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>E&#038;Y have analyzed Ontario tax rates as of 2011-1-15 and we may draw some conclusions from these data: Investors Taxable Income Marginal Rate on Interest Marginal Rate on Dividends Equivalency Factor Widows &#038; Orphans $30,000 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[],"class_list":["post-14255","post","type-post","status-publish","format-standard","hentry","category-taxation"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14255","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=14255"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14255\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}