Why you should notice the government is withholding money from your paycheques

2 weeks ago 5

Rommie Analytics

Few features of modern taxation illustrate fiscal illusion better than payroll tax withholding.

My son’s first paycheque after he landed his first decent-paying job in the career he had long studied for resulted in a phone call. “Dad, the company didn’t pay me correctly. I was supposed to receive a much higher amount.” I smiled to myself, recognizing a teaching moment when I heard one. “Take a screenshot of your pay stub and send it to me,” I told him. He did.

Sure enough, the income tax, Canada Pension Plan and employment insurance withheld were entirely normal. I phoned him back to walk through it line by line. My teachings throughout his childhood about taxes and m...

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