Single moms better off in Canada, at least when it comes to taxes
Compared to most developed countries, Canada has a relatively low tax and social security burden on labour income, according to recent OECD figures.
The average tax wedge, which is calculated by adding income taxes to employee and employer social security contributions and deducting cash transfers as a percentage of total labour costs, is lower than the OECD average for every family type, says the organization’s most recent Taxing Wages Report.
What’s more, the difference between Canada’s tax wedge and the OECD average has increased in the past 11 years, according to the report.
That’s right, they get back from the government more than they send in to the tune of 8.3 cent explains, McGill economics professor William Watson expolains in a recent analysis.
Among the 34 rich countries the OECD tracks, only three were more generous in this respect: Australia, with a negative tax of 11.4 per cent, Ireland at 9.5 per cent and New Zealand at fully 18.2 per cent. In all other countries, families in this position paid net taxes.
Of course, this still doesn’t mean single moms have any money. But, if you’re going to make do without much income, it appears that Canada is still the place to be.
As society gets richer it can both spend more on the people growth hasn't brought along, and claw back less, Watson says.
Does this make sense to you?
By Gordon Powers, MSN Money
* Follow Gordon on Twitter here.
Posted by: Alvin | May 26, 2021 11:48:06 PM
The government should put more tax relief to the WORKING families with single/or not single parents, because parents are sacrifying their own quality of lifestye by raising kids, lots of effort, engergy, time and yes, money in order to raise them. Think about the double/triple costs of vacation for families with kids becasue they are likely to take one during peak seasons when school is closed for while people without such burden can take advantage of deep discount at 1/2 or less of the cost, let alone the tuition and living cost when kids go to the univeristy.
Of course, I wish all working people should get tax relief so that we all can enjoy better life we deserve indeed instead of our tax money being wasted/abused there and here, everywhere!
Posted by: dan | May 27, 2021 12:04:53 AM
i can't believe all the single mothers complaining about being taxed, taxed on support because they "don't have the time or patience". these or rather those orders changed years ago, i know been there done that. it is simple to get changed. so rather than spend time on a site like this complaining to each other, maybe spend that time and get your orders changed. as far as those with no orders or dads paying very little support, these are and have very strong laws for the dads to pay. again spend the time to get the order or have the old one modified, simple. and to add, all those complaining about the gov. taking and not giving, who did you vote for last election? who did your neighbor, ex, etc vote for? all i can say is i voted the proper way but lost and still have to put up with the same gov. this time a majority. we are so screwed for the duration.
Posted by: Colour of money | May 27, 2021 8:38:24 AM
As I said before, move to Montreal, Quebec. (or New Zealand according to the article)
The average income is slightly lower than other big Canadian cities, but the cost of living is much lower, and the tax benefits and transfer payments are significantly higher for families, whether single-parent or not.
There is a reason it's called La Belle Province.
Posted by: melonhead | May 29, 2021 6:16:25 AM
I am a single mother, daughter in university. Making min wage. mortgage, insurance, condo fees, everything I have to pay for. I took out some stocks that I needed to buy a car and got hammered with taxes. Yep. just because I made an extra 2300 last year, I did not get anything back from Mr. Federal and Mr. Provincial. So where is the justice here. EX does not provide for anything even though he makes more than double what I make. I do not know where they get their numbers but I wish I knew so I could tap into it for a while
Posted by: Don | May 30, 2021 10:27:48 AM
Wow.....minimum wage with a mortgage, insurance, etc. Anyone I know making min wage cant qualify for a mortgage. There has got to be more to this story than what is here. If not let us in on your money management secrets.
Posted by: CY | Aug 5, 2021 1:40:55 AM
Wow, I didn't think single moms could have it any better than the do here in the US. Free food, free housing, free utilities sometimes, free legal aid, free transportation services sometimes, free school so you can get a good job when the kids are grown and no longer able to get you all the freebies... but no student loan for you, oh... and 5 grand and usually closer to 10 in free money you did not pay in, do not have to claim as income, and no stipulations on how you should spend it. After tax time I see a lot of "struggling" single parents buying flat screens, video game systems, etc. I see a lot of "single" moms living with or being partially supported by boyfriends or family and not having to claim that. A single mom I know makes twice as much as I do and her boyfriend makes the same as my husband. Yet she gets over 5000 more back in taxes, free healthcare for her children, food stamps, help with utilities, is going to college for free, and the list goes on. Her boyfriend's parents are loaded so they can get help whenever they need it. Their kids have a flat screen and blue ray player in their room, a motorized mustang, a wii, and their own laptop. Paid for by my hard earned tax dollars. Meanwhile I have a ton of debt, including a ton in student loans. I have a degree, a marriage license, and not much else......we don't qualify for anything.. but they are doing FAR better than we are. And they are not the only ones. I guess if we ever got desperate we could get a divorce and I could be a single mom and be way better off, too.