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If you're any kind of college educated professional, then without a doubt you will make a lot more money in America, with lower taxes and higher incomes. Something like 40% of Canada's doctors and 25% of financiers and IT professionals eventually immigrate to the U.S.
I'm very surprised that a couple people have said that the average income in Canada is higher. Maybe it depends where you live but from my experience living in Alberta and the US, that is definately not true. My husband is in programming and he has done many comparisons of income all over the US with Canada and it is always quite a bit higher in the US. And the taxes are higher in Canada too! Ya sure you don't have to worry about medical care if you want to wait forever and many times receive poorer quality care.
Americans do make more money than Canadians, and the difference is reasonably significant.
I didn't think income was a component of GDP. I know consumption is, and that correlates to income, but still, it seems GDP measures the robustness of the economy, not average incomes.
US salaries are definitely higher than Canadian salaries, and the taxes in the US are very, very much lower. For health care, it is not free in Canada, I have to pay on my tax declaration. Purchases are much higher in Canada then in the US. Housing, however, used to be much lower in Canada but that is changing. The quality of health care is much better in the US.
The GDP has nothing to do with the salaries Americans are paid. The GDP is just a Gross Domestic Product and its worth. However, in comparing salaries for the USA and Canada, I have come to realize that the salaries varies from province (Canada) to State (USA). If you live in California, you get better pay but higher cost of living. If you live in New York, there is higher pay and higher cost of living. Living in florida (orlando for example) lower pay and higher cost of living. More and more americans are having to turn to "Payday" loans to cover t heir bills. The American economy has taken a hard hit and it willbe a while before it bounces back.. if it bounces back. Don't be fooled that healthcare is better in the USA than it is in Canada. Recent study conducted by American researches showed that Canadians had better healthcare and actually lived longer than the USA. More and more Americans are developing illnesses such as diabetes and hypertension where incidence of those illnesses are lower in countries where healthcare was more accessible. Don't believe that having healthcare insurance in America is good, often times the premiums are too high and so are the deductibles, co-payments and coinsurances... it is expenses such as those that keeps the average American out of the doctor's office. Take a look at the increasing numbers of Americans who are now migrating to Canada and you will see t hat there is great concern about the American economy and America's future.
I'm a businessman with advanced degrees in finance and economics who has traveled extensively for business and pleasure in both countries. Here is my opinion:
In terms of taxes, it depends heavily on your specific tax situation (single vs married, number of kids, how much you save, how much you eat out, etc). Comparing tax rates or average disposable income figures isn't very helpful. You pretty much have to crank it out on a very large spreadsheet, including all taxes at all levels (local, state and federal, counting exemptions and fees). And when you do, you'll have some surprises in store.
For example, while everyone knows that Canada is a higher tax country, a colleague in Alberta and I (we have fairly similar incomes in $US dollar terms) once compared taxes and disposable income...and found that once you counted all taxes, I had about $900 more disposable income after taxes and medical expenses.
Overall, given the studies I have seen, I would propose the following rule-of-thumb: If you make less than $US 50,000, you probably are better off in terms of after-tax, after-medical expense income in Canada. If you make more than 50,000 you are probably better off in the US. Of course other factors can raise or lower this figure. For example, if you have more than two children, the generous tax exemptions in some Canadian provinces can work in your favor.
As to who makes more after taxes, again it depends. Some occupations (like software and doctors) do much better in the US, while more blue-collar occupations (oil-workers, etc) may find Canada better. Overall though, be distrustful of US income statistics. The averages in those tend to be dragged upward by a few outliers (Sure US average income is higher. But if you eliminate the top 1% of US and Canadian households, the difference between the two countries drops dramatically)
As to differences in Medical care - I have had great medical care and horrible medical care on both sides of the border. In my opinion, if you have a chronic condition that can be treated with established pharmaceuticals or care from a primary physician, Canada is probably best. On the other hand, If you need the latest in surgery and can afford it, the US is best.
"a penny saved , is a penny earned" as ben franklin once said,, and its true..
The canadian dollar may as well be considered par with the american dollar as the exchange is just about 5%.. so canadian wages have been increasing to the american if you factor in exchange,, but the truth of the matter is, canada is great at over taxation.... i pay 47% income tax in windsor ontario.. i am a dentist by the way,,,,
Right off , that is more than the highest tax bracket you would find in the U.S. ,, and then dont forget the 14% PST, GST,, (sales taxes) on nearly everything you buy,, so now that brings me up to 61% taxes i pay,,,
,,, oh,, in ontario there is additional health care tax you pay according to your income. In my case its a extra $5000 or so, (5 in my family),, all this for mediocre health care here in windsor..
In ontario,, you do not get to write off interest on your home mortgage,, you dont even write off your property taxes,,,, lol... and they say they dont double dip,,,
and for the americans which cant believe this can be,, let me tell you, that when you buy a vehicle with airconditioning,, there is about 100 bucks airconditioning tax,, and would you believe that on top of that 100 bucks,, they actually charge sales taxes,,,,,
but wait,, we get FREE medical,, what a joke,,, i am getting sick of canadians always throwing that as a answer for high taxes,, its BS... i was in michigan for years,, and for about $600 a month i got great traditional blue cross blue shield medical,,, which by the way was a write off,, i would get a MRI that minute if needed,, my wife has been feeling horrible with thyroid hormone all being out of whack,, and yes she is being seen by a specialist,, in 8 MONTHS from now,,
If i sound bitter, its because i am,, lol.. My wife and i recently decided to open up a office back in Michigan,, that is the difference with a good degree,, you can move if need be,,
Sadly canada will not understand,, that this is a world without borders,, and with their excessive taxation,, people who can really save , therefore earn,, move out of canada,,, thereby canada is losing income,,
The only ones making money it seems are the ones who work for cash,, or mom and pop diners ,, hair salons ,, which collect alot of cash, and declare just enough to pay nothing in taxes,,
Canada is indeed foolish in punishing the successful... but they are great if youre lazy and want to live off the government,,,,
Location: In an illegal immigrant free part of the country.
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Quote:
Originally Posted by melissaaa<3
The average income in Canada is higher than in America.
I would look at what you net after Canada's taxes.
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Weighing in on Income differences
