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It's funny how everyone makes a big deal about the tax difference. You're only really noticeably less taxed in the US if you earn over $150,000. If you're earning less than $40,000, in general, you pay less tax in Canada. The tax rates are hard to compare due to all the deductibles, cost of living and tax rate discrepancies depending on which state or province you live in. You probably get more bang for your buck for you tax dollars in Canada but it's easier to land a higher paying job in America.
You need to examine Tax Burden as opposed to a marginal tax rate. When you factor in deductions and exemptions you have a much lower tax burden in the US in all tax brackets, not just in the upper tier. Obviously this difference is more pronounced in the highest bracket.
Most people make the mistake of just focusing on a basic tax rate, when you need to look a little deeper, being an accountant myself that has lived in both countries I understand this better than most.
Sorry if someone had already mentioned this. But one big Canada con for me is in most cases you pay 2x as much if not more for the same good or service that is available in the USA. That and the CRTC is another downer for Canada
The taxes are horrible. But it varies from province to province. BC is getting some crazy harmonizing tax that will effectively add 12% to the price of home purchase. Nuts. And you don't get to deduct the mortgage come tax time. Nor do you get charitable deductions because heck, canucks are already forced into charitable giving via the taxes.
O, to clarify: if you have clothes etc to donate, may as well sell them in a garaaaage sale cause if you donate them to a shelter, they don't count as deductions. In the US they do. But if you've got other revenue deductions go for it. Oh, find it interesting that you failed to address the fact that your mortgage and so forth are NOT DEDUCTed. And your new home purchase is hugely taxed.
There is certainly no doubt Canada has a higher tax burden than the US; it would be foolish to argue otherwise.
On the other hand, not all Canadian provinces have opted to institute a Harmonized Sales Tax where the provincial sales tax is piggybacked onto the federal Goods and Services tax. That said, various provincial governments (with the whole-hearted encouragement of the feds) are looking greedily at this potential revenue stream and pumping some serious sunshine with regard to it being better for everyone.
Each country has a different taxation system -- you failed to mention that there no Capital Gains Taxes on the sale of a principle residence, so all appreciated value you gain from the sale of home is tax free.
There are pluses and minuses to each system just as there are pluses and minuses to other aspects of the two nations and yet the overall standards of living in each nation is remarkably high.
Pros and Cons... here's my perspective growing and living in Canada for 25 years, and now 10 years as a US resident with US citizenship.
Pro US vs Canada
- Most diverse country in the world (yup you heard it)
- Taxes "usually" are lower than Canada
- more dynamic and diverse cities
- better job opportunities
- Individual pursuit and will of people to get the job done
- more community spirit
- Much more to see and do (particularly in highly populated areas (east coast) which Cdn has very few of and that are further away)
- Better weather (most of the time)
- Bigger emphasis on sports and sporting nation (which is either a pro or con depending on how you look at it)
- Usually quicker pace of life, things get done faster (although not neccesarily better).
- We are not hung up on our identity and have no identity crisis.
Con US vs Canada
- Weaker social safety net
- Where's my health care? (see point one)
- Less emphasis on education with higher education at sometimes outrageous costs (but more schools to choose from)
- People are more reactionary
- Distrust in Government
- Not as many people like hockey (but the big fans you find are serious hard core)
That's a general idea, however it's not the be all end all. All areas of the country have different thoughts both in Canada and the US that have these characteristics.
Wow it amazes me that all the talk is money....pretty sad.
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Who cares
