Sunday, February 25, 2007

Tax Time 1944

Hi Marty,

I was just going through old papers and found my grandfathers tax work sheet from 1944, the year I was born. (I know why do I still have it) I guess my family just never threw things out.

Anyway, at the time he was working for The Steel Company of Canada.

Gross earnings $ 2523.08 Deductions at source 503.43

Charitable donations 2.60 (yes that’s two dollars and 60 cents)

Taxable income 2520.48

Fixed Tax 409.00

Savings tax 252.00
Less voluntary savings 7.20
Savings tax remaining 244.80
Savings tax payable (one half of item above) 122.40

Total tax payable 531.40 (Fixed tax plus Savings tax)
Less Tax deducted at source 503.43

Balance due 27.97

So little pay, so much tax...... sound familiar. It makes one wonder how the country functioned so well and our mothers could afford to stay home and take care of the children.

When you look at earnings versus cost of living, things were pretty much the same as they are now, excluding medical expense. Whoa looks like we will be going back to 1944. Low salary, high taxes, no medical.

Bob H

Thanks Bob H.

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