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This says that the United States has a higher tax burden.
Obviously Canada has more social programs, but are taxes really that higher in the great white north?
I guess it depends on who you are, how much money you make, what your lifestyle looks like, and what kind of activities you participate in. For example, even though income tax may be low somewhere, that says nothing about sales taxes, gas taxes, what tax credits are available, property tax rates etc. Most US cities I've heard of have much higher property taxes then Canadian cities, but on the other hand that also translates into lower RE prices. It's a complex question. I spend a large portion of my income on groceries which don't have a sales tax, don't buy alot of alcohol, and don't buy gas, so my tax burden is much lower then my neighbour's if he commutes long distances in a two car home, spends more on taxable items, and smokes. And our other neighbour with 3 dependent kids and a different tax bracket has another situation altogether. How about if someone is about to get an inheritance or some other type of windfall? These are taxed in some jurisdictions and aren't in others.
And all of this says nothing for services you need to spend more on in the private sector if they aren't paid for through taxes (garbage pick-up, healthcare, more on daycare if you're a Quebecker etc.) It's a hard question that is ultimately individual and dependent on which two specific places you are comparing within the countries.
Apples to apples comparison, for me, absolutely yes. That being said, it goes significantly beyond just the tax burden, as my entire lifestyle is 20-30% cheaper, if not more, in the US.
The raw tax is pretty close, but there are significant deductions that are available in the US that aren't in Canada.
Apples to apples comparison, for me, absolutely yes. That being said, it goes significantly beyond just the tax burden, as my entire lifestyle is 20-30% cheaper, if not more, in the US.
The raw tax is pretty close, but there are significant deductions that are available in the US that aren't in Canada.
Same here (Well not as high as 20-30% cheaper) and I live in a high COL, higher tax burden state than you. Home ownership is the one major tax benefit that has lowered my overall tax burden vs living in Canada. Also if you do any consulting work, the tax breaks are significantly more generous in the US from my experience.
Taxes don't make such a big difference. Prices do.
Tax difference of 10% is major, but a price difference of 30% or 50% on certain products between the two countries is common.
My friend bought a $350 Dyson vacuum from the US because it costs $780 in Canada for some odd reason. In light of that, who cares about the 6-7% in sales tax.
surely, not everyone needs a $800 vacuum cleaner, but the price difference is what leads to the disparity of purchase power, not some difference in taxes.
Taxes don't make such a big difference. Prices do.
Tax difference of 10% is major, but a price difference of 30% or 50% on certain products between the two countries is common.
My friend bought a $350 Dyson vacuum from the US because it costs $780 in Canada for some odd reason. In light of that, who cares about the 6-7% in sales tax.
surely, not everyone needs a $800 vacuum cleaner, but the price difference is what leads to the disparity of purchase power, not some difference in taxes.
Corporate taxes in the US are significantly higher than in Canada but I'll assume you mean personal taxes.
Personal taxes are certainly lower in the US and the higher up the income level you go the bigger the difference as Canadian taxes are more income relevant than in the US. In general if you are a average wage earner in the US than your personal taxes will be lower as will most sales taxes and certainly in gas, booze, and cigs.
That said, you get what you pay for. In Canada post-secondary is MUCH cheaper than in the US and we have no elitist school fees where one can "buy" a good education. Healthcare premiums are a huge expense in the US that we don't have and what's more the vast majority of American are under-insured which is why personal bankruptcy in the US is caused by first unemployment and second by healthcare costs.
Canada also has a far more generous social welfare system and overall safety net which in the US goes from minimal to near non-existent. Conversely Americans get many tax write-offs that Canadians don't enjoy such as mortgage.
In general if you are an average or certainly low income earner you are far better off in Canada but if you are a high income earner than you are better off in the US.
As the old expression goes.............The US is a great country to be rich in and Canada is a great country if your not.
That said, you get what you pay for. In Canada post-secondary is MUCH cheaper than in the US and we have no elitist school fees where one can "buy" a good education.
Tuition is not cheaper in Canada. Not by a long shot.
UBC, considered #33 in the world for universities charges $4900-$7800 per semester for Canadian residents.
University of Texas - Austin, #27 on the same list charges $4700-$5400 per semester for in state residents.
The amount of health insurance in USA is staggering ($800-$1000 a person a month is not uncommon). That alone, to me, cancels out all nit-picking about taxes.
I also know someone who has enrolled at UBC in agricultural from the US. He told me the same would of cost him much, much more in the US, hence one of the reasons he is here.
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