crashmtb
Well-Known Member
- Joined
- Jul 11, 2021
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- Location
- Man oh Manitoba
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- 2002 aluminium garden shed TD5
Not many people understand how marginal taxes work. I know accountants who don’t get it. ?That article is a bit misleading. First, the luxury tax has been pseudo-official since it was announced back in August of 2021 (it's gone through multiple consultations). Secondly, they don't mention the full details of the luxury tax. From the official announcement on the government website here:
So, using my config as an example at ~$101,000 (UGH).
10% of $101,000 (full value) = $10,100
vs
20% of $1,000 (value above threshold) = $200
It's not as bad as the news makes it seems, but still crap. BC gets extra dinged with our tiered PST rates (10%), along with GST (5%), and now this.
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