Today’s post is less a “tax tip” and more of a tax SHOCKER just to give you my oh-so-loyal readers just a bit of perspective on your taxes and how they’re not such a big deal when you think about it. The point of this blog post? Fun!! And also gives me a chance to throw around some absolutely MASSIVE numbers for no other reason but to satisfy my own morbid sense of humor and curiosity.
If you’re a regular, every day family man or woman and you work as an employee, you get your taxes deducted by your work. Then, at the end of the year, you probably get a tax refund if you have kids in daycare or contributed to an RRSP during the year. All said and done, if you’re earning $50,000 per year, you probably pay about $17,000 in tax (that could change a lot depending on several moving parts).
Now……and I demand a drum roll please……let’s take Mr. Carey Price as an example of a professional hockey player’s tax situation. Pricey will earn $5,500,000 for the 2012-13 season and in addition will receive a signing bonus of $2,000,000. I’m going to assume that the big guy gets paid on a monthly basis throughout the year. Price is single and I’m assuming is on the Canadiens group health care plan (do you think they have decent dental???).
So, his taxes look something like this: his monthly gross pay, before tax? $625,000. Or, in words, SIX HUNDRED AND TWENTY FIVE THOUSAND DOLLARS!
Every month, Price gets $160,440.48 withheld for his Quebec income taxes, $150,443.00 for his Federal income taxes and about $3,200 withheld in month 1 of the year for QPP and EI. These are real numbers, people.
Every single month, Price pays an average of almost $313,000 in tax! His net pay that gets deposited into his bank account each month is about that same amount. Now, just for fun try and imagine spending $313,000 every single month of the year, even in October when we only leave our houses between Habs games and for trick-or-treating.
I hope this was an enlightening tax experience for everyone and not overly depressing. Drown your sorrows in Game 1 tonight! GHG!!
The Funny Accountant Habs Fan.
PS – In honour of tonight’s game and the intensity that comes with the history of the Habs-Leafs rivalry, check out the Quebec vs. Ontario blog post from a couple of weeks back. And, as always, if you have tax questions, need advice on your personal taxes, corporate taxes or anything else accounting or business related, please contact The Funny Accountant/President of MK & Associates at firstname.lastname@example.org