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. 

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. 

There is a very thorough explanation of this theology by John Macarthur here -

Your thoughts?

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