Math 11e - Unit 7 - Personal Income Tax

Personal Income Tax – An Introduction


The old saying “…two things you can’t avoid in life, death and taxes”, may seem a bit morbid but it does speak the truth. Everybody has to pay taxes. Both the provincial and the federal government will take a certain percentage of what every person makes in this country. That money is used for all of the services that many people take for granted. Things like infrastructure such as highways and water and sewage systems, income assistances, education, health care, and defence. Without government Canada would not have one of the highest standards of living in the world with some of the most highly educated populace… and that takes money.
Canadians believe in a graduated taxation system meaning that the more you make the more you pay in taxes. According to the Canadian Encyclopaedia;

“…the top 10 per cent of taxpayers paid 52.6 per cent of all federal taxes, up from 46 per cent in 1990, making them the only group whose share of taxes exceed their share of income. At the same time, the rest of Canadians have seen their collective tax bill shrink.”



Essentially Canadians believe that a person who makes $20,000 a year should be paying little or almost no taxes and the person who is making $200,000 a year should be paying close to 50% of what they make. The money that high income earners make and subsequently taxed on goes to pay for those services that are then utilized by those in the lower income brackets in order to maintain a certain standard of living that we as a society deem as minimal.


Whether you are in a high income bracket or in a low income bracket, collectively we pay taxes to insure that all Canadians have access to education, health care and food and shelter in the hopes that by providing the minimum requirements for survival, people can then work on bettering their own financial situations and then contribute more to making Canada the greatest country in the world.


For Unit 7, you will need to practice filling out your own income tax form. The unit will be marked on a completion basis only and you are encouraged to work through the income tax form with your teacher or someone who has experience with filling out income tax forms.


You will need to print out the Income Tax Form, the Federal and Provincial Worksheets, your T4’s (your receipt of your income from your employer) and your RRSP contribution receipts.


You can’t avoid it, so you might as well do it!