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Don't quote me to a T but first of all, Canadians have what 70-90 million people but the US has 230 million. So that alone means people living in the US make more money. Also Canada has much landmass unliveable for humans, while the US has what Alaska, which still liveable. If Canada had more liveable land mass there would be more businesses and more money. So, you can't really compare the two fairly.
If Canada had California, it would be desireable to live there, which would make housing and goods more expensive which would make pay checks larger. So like I said, not compareable.
there are more people in california than canada or very close
canada has only had about 35 million people ate best 70-90? LOL not on your life
Out of curiosity, if you make say 40k and are single....what sort of tax bite does Canada put on you vs. the US? Im talking about a rough guess at TOTAL tax burden. (sales, income, property etc.) Im guessing it's higher in Canada than the US but you do get the health insurance.
Out of curiosity, if you make say 40k and are single....what sort of tax bite does Canada put on you vs. the US? Im talking about a rough guess at TOTAL tax burden. (sales, income, property etc.) Im guessing it's higher in Canada than the US but you do get the health insurance.
In my experience, living in both countries, the tax burden is significantly higher in Canada.
Just like the US, taxes depend on where you live. In both countries, federal taxes are on a sliding scale. The biggest tax hit comes in fuel and sales (GST/PST) taxes. Gasoline in Canada can be 20% more expensive than on the US side of the border. GST and PST combined can be as low as 5% total in Alberta (no PST) and as high as 13% in some eastern provinces.
In addition, there are many taxes you pay without even knowing it. The cost of consumer goods in Canada is higher than the US. In many cases, this is due to corporate tax, import tax, et al. While the end user does not have to pay these taxes, they are generally built into the cost of goods.
Another item to consider is the mortgage interest tax deduction. An 80% loan on a $500K house will reduce taxable income for a US resident by as much as $20,000/yr on a 5% interest mortgage. In Canada, there are no tax advantages in owner occupied residences.
I couldn't help with comparisons since I am not up to speed on deductions and rates. A good accountant should help you if you are really contemplating a move.
In Canada, there are no tax advantages in owner occupied residences.
Not quite true.
Capital gains made from the sale of principal residences are tax free. In other words, if you buy a house for 100K, live in it for 5 years and sell it for 200K, the 100K you made in profit is tax free.
In my experience, living in both countries, the tax burden is significantly higher in Canada.
Just like the US, taxes depend on where you live. In both countries, federal taxes are on a sliding scale. The biggest tax hit comes in fuel and sales (GST/PST) taxes. Gasoline in Canada can be 20% more expensive than on the US side of the border. GST and PST combined can be as low as 5% total in Alberta (no PST) and as high as 13% in some eastern provinces.
In addition, there are many taxes you pay without even knowing it. The cost of consumer goods in Canada is higher than the US. In many cases, this is due to corporate tax, import tax, et al. While the end user does not have to pay these taxes, they are generally built into the cost of goods.
Another item to consider is the mortgage interest tax deduction. An 80% loan on a $500K house will reduce taxable income for a US resident by as much as $20,000/yr on a 5% interest mortgage. In Canada, there are no tax advantages in owner occupied residences.
I couldn't help with comparisons since I am not up to speed on deductions and rates. A good accountant should help you if you are really contemplating a move.
Thanks, I'm not moving, just curious. Your 3rd paragraph was brilliant, nice to see someone that understands economics. If people better understood how prices get passed along to consumers we would have fewer stupid threads about putting higher taxes on corporations to "teach them a lesson"...especially since these tend to be regressive taxes that most impact the poor.
Capital gains made from the sale of principal residences are tax free. In other words, if you buy a house for 100K, live in it for 5 years and sell it for 200K, the 100K you made in profit is tax free.
In the US, capital gains (up to $250K individual/$500K couple) on owner occupied residences are tax free after only 2 years.
The reports states that The numbers are in. Compared to the U.S., we work less, live longer, enjoy better health and have more sex. And get this: now we're wealthier too.
I'm not so certain about the wealthier part, but at the end of the report, it states that the average Joe in Canada is having a way better time.
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