ECON 240- Midterm Exam Guide - Comprehensive Notes for the exam ( 39 pages long!)
Document Summary
What is taxed? earnings personal income corporate income consumption sales property value etc. statutory vs. effective tax base. Effective tax base = statutory base - any exclusions for tax breaks. Pit (personal income tax) effective base = earnings + capital income + transfers - deductions - value of tax credits green = statutory base red = tax breaks. Personal income = e + k + t. K = capital gains from investments only some of capital gain included (roughly 70%) differed income (rrsp) T = transfers from the government some excluded (gis, child bene ts) Non refundable tax credits (nrtc) tax occurring but not below zero. Taxable income x tax rate structure = basic tax owing. Basic tax owing - nrtc = tax owing. Total nrtc x 0. 15 = tax saving = nrtc. Tax owing - rtc = nal tax calculation. The different rates that groups of income pay.
