I don't find the article credible at all. One quote:Diadem wrote:http://www.investopedia.com/financial-e ... icans.aspxaltiplano wrote:You save more than the cost of insurance in taxes.
That's not true at all. Depending on which province/state you live in and which tax bracket you fall into, you may pay less tax in Canada than the US, while also receiving universal health care. Unfortunately I can't remember the exact article, but I read an analysis which showed that an average Canadian earning $90000/year will pay less tax overall than Americans living in all but a couple of states; when you factor in sales, consumption, and other taxes, in addition to income taxes, Americans tend to pay more and get less.
Canada has a progressive tax system, which means there is no single tax rate. Setting aside that the 29% federal Canadian rate mentioned was raised to 33%, it completely omits the fact that the highest marginal rate in Canada now ranges from 48% (Alberta, Yukon) to 54% (Nova Scotia). There is nothing remotely comparable to this in the US.U.S. federal income tax brackets range from 10% to 35% for individuals. On the Canadian side, the range is 15% to 29%. In the U.S., the lowest tax bracket bumps to 15% at $8,500 and to 25% at $34,501. The bottom Canadian bracket stays at 15% until $41,544. This is the bulk of the reason that lower-income Canadians are often better off than Americans in an identical tax situation. On the other hand, the IRS taxes the richest Americans at 35% whereas the top federal tax rate in Canada is 29%.
And if we're going to include to include universal healthcare as a major cost savings for Canadians versus Americans, then we also have to look at what for most people is their single biggest monthly cost: housing. That ends the "Americans tend to pay more and get less" argument pretty right quick.
About the only remotely valuable piece from the article was this:
Exactly.Comparing income taxes in the United States and Canada requires an analysis of the benefits received for those taxes and any other out-of-pocket costs outside of taxes. Each taxpayer's individual situation will determine whether they would be financially better off in one country over the other.
Sure, I would rather be poor in Canada. But if one's goal is something other than poverty, I'd take the US any day. If you want just enough, with any shortfall taken from others willing to work harder or take more risks or get more education than you, choose Canada.