Wednesday, January 7, 2015
Annual Budget - Taxes and Payroll Deductions
So we can see from my pie chart (click to enlarge) that nearly 30% of my total earnings went to federal income tax, provincial income tax, EI premiums, and CPP contributions. If I didn't contribute to my RRSP, work pension, deduct work expenses or donate to charity the percentage to taxes would be 34%. Clearly, there are incentives to contribute to retirement plans and donate to charity under Canadian tax law. I am not bashful about using these incentives to the maximum practical level. Clearly it is good practice to give generously and save for the future so I would do that anyway without the tax help but the tax laws make it easier to do so.
I don't begrudge paying income tax and Jesus certainly advised the same as recorded in the book of Matthew. https://www.biblegateway.com/passage/?search=Matthew+22%3A15-22&version=TLB
The writer Paul also notes in the book of Romans that we should submit to those in authority over us and he explicity notes paying taxes as a form of obedience. https://www.biblegateway.com/passage/?search=Romans%2013&version=TLB
There is a very thorough explanation of this theology by John Macarthur here - http://www.gty.org/resources/Study-Guides/40-5127