Have you ever researched Canada's income tax brackets?
Until this morning, I hadn't either.
However, the numbers will probably make your head spin.
In Canada, which Americans have long called a "quasi-capitalistic" state in jest, the highest earners pay 29% in federal income taxes. For those of you playing at home, or work - that is almost 17% less than in the United States. And Canadian corporations pay nearly 50% less than their American counterparts.
Is your head spinning yet?
Those numbers explain why Canada didn't suffer during the 2007-09 recession, and why Irish immigrants are no longer coming to America for work, but to our friends in the Artic North.
America must ask herself this very important* question: are we really going to allow economic conditions to be more favorable for businesses in Canada than here? The answer should be short and simple: absolutely not.
What say you?
* - Especially when it comes to corporate income taxes.
Nice work, Mr. Kat.
ReplyDeleteTrue, but you should realize that the provincial taxes in Canada (e.g. in Ontario, Quebec, etc.) are much, much higher than the state taxes in the US. In some provinces they are almost equal to the federal taxes.
ReplyDeleteI'm curious how the author calculates an almost 17% difference between 29% and the US top rate of 35%. Social security doesn't affect that, since its contribution ends long before that top rate is reached.
ReplyDeleteI know how. Taking 17% away leaves 83%. 83% of 35% is 29%. It's percentages of percentages.
ReplyDeleteBut again, this article conveniently omits provincial (state) taxes.
I have a friend who lives in Alberta, and she said that they pay about 50% of their pay in taxes. But she likes the country that she funds through that tax money so she stays.
The provincial rate in Alberta is 10%. look it up. What are you talking about?
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