Bruce, one of the biggest differences in the tax systems of the US and Canada is the amount of deductions that one can take. For example, here in the US we can deduct mortgage interest and the sale of a personal residence is for the most part exempt from personal income tax. It is my understanding that those are two of the major differences between our two tax systems and there are others. Of course one of the real big differences is that the US taxes all citizens on worldwide income and Canada does not. Canada does a much, much better job of controlling drug costs. One of my clients had cancer and his drug costs in the US were over $8,000 a month, but if he bought his drugs in Canada, it was $2,000 a month. Canada negotiates drug prices while the US basically allows the drug companies to charge almost as much as they want to. I don't disagree with the morality of universal health care. We SHOULD have it. The problem that I have with Obamacare is that the system is overly burdensome and ill conceived. Obama's minions had three and half years to get this thing up and running and they've just screwed it up. Add to that, we have a shortage of docs in the US and this law, coupled with the tax increases, is not going to help that situation. Add to the shortage of docs is the cost of Obamacare. We are in huge trouble with the debt in the US. According to the Congressional Budget Office we will be spending 100% of gross domestic product on debt service by 2037. Social Security will be spending more than it is taking in by 2022. We have a huge, huge spending problem in the US and Obamacare is not going to help alleviate that problem. Ed
Just to clear up a few things, the sale of a primary residence in Canada is completely free of any capital gains taxes, unlike in the US. Also, both countries impose taxes on global earnings. The difference is that for Americans, you are taxed on your citizenship. Canadians are taxed on their residency. In other words, if I leave Canada and reside elsewhere, I will pay taxes as they apply in that particular jurisdiction. As a US citizen, I would pay US taxes over and above those that apply locally on any income above about $85k or so. As a Canadian, I would simply file Form NR6, prove non-residence using the closer connection test, and off I go. Only the United States, the Philippines, and Eritrea assess taxes based on citizenship. No other countries in the world do this. Being able to write off mortgage interest on a primary residence is a huge advantage for those that are responsible and disciplined. Unfortunately, most people are neither and as a result, countries that allow this deduction have not seen the potential positive effect they had hoped for. Case in point, if you've ever been to Desire or TTR in April, you've probably lost count of how many people are paying for their trip using their tax return...lol.
If I may clear up a couple of your points. The sale of a US primary residence is exempt in the US when the gain is $500,000 or less for a married couple. There are very few people that have recently had any taxes on the sale of their personal residence due to the size of the exemption. The US does tax its citizens regardless of residency, but gives them a credit for taxes paid to any foreign government. As to the deduction for mortgage interest, that had never been a problem until Barney Frank, Chris Dodd, and Andrew Cuomo pledged that every US citizen should own their own home regardless of their financial standing. That is when the mortgage market started the feeding frenzy that resulted in the eventual collapse of the market. Most of the US tax code is designed with some sort of social engineering, be it benefit or detriment, as its root. Much of the current tax code is meant to benefit the less fortunate but has actually resulted in an incentive to not work and not produce. The intent may have been good, but the result has been a disaster. Obamacare is an example of this social engineering. The theory is fine, but the practice is not workable. Particularly the way things are currently structured. Add to that a government that is so deeply in debt that it may never come out of it and the current disincentive for doctors to work and you have the recipe for disaster.
FOX News???? Equating me to FOX News is cutting me deep, as my friends here will tell you. lol The abusers are definitely a problem. Young parents taking their kids to Emerg for a cold or the flu. But what made me think of it was a show I saw. 20/20 or 60 minutes, something like that. The premise was that they looked into some individuals who were a major drain on Medicare. They uncovered the old 80/20 rule. 20% of the cost of Medicare is going to a relatively small population of people. People with chronic and usually numerous illnesses or medical problems. Often these people move from doctor to doctor looking for relief and/or meds. They concluded that the doctors never really get a good chance at a valid diagnosis. If these people could be treated effectively, a medical data base which all doctors could draw on and doctors who specialized in treating these cases a lot of money could be saved.
The complexity of the tax systems make it really difficult to draw a comparison, as it's been pointed out. I'm far from a tax expert. Lottery and gambling winnings are not taxed in Canada. I don't know the exact differences between America's inheritence ta vs. our capital gains taxes when selling a home you have inherited. I hear that overall tax liability on inheritance is lower in Canada than the U.S. This is one of the websites I recall looking at. It indicates we both pay an average of 30% of our income in taxes. www.nationmaster.com/compare/Canada/United-States
This surprised me. I have a friend (Single guy) in NY state who will be paying 511.00/mth under his new Obamacare plan. With a 1,500.00 deductible. It will go higher once the supplements expire. So comparing that and info from the two links below: Single person in Canada 3,780.00/yr - US 6,132.00 w/ 1,500 deductible Family of four in Canada 11,320/yr - U.S. Minimum of 20,000 'Free' Health Care in Canada Costs More Than It's Worth | Nadeem Esmail IRS: Obamacare Will Cost Families $20,000 Minimum | The Money GPS
I am surprised by the $20,000 number for family coverage. If we went away from our current high deductible HSA (Health Savings Accounts) plans we would be somewhat below that $20,000 number. The premium being paid by the single guy in NY is difficult to gauge as there are income restrictions and requirements so comparisons are difficult to make without knowing what the income is for that individual and where it falls within the ranges established by the government. I do think Obamacare will be the answer to one big question. Obama may have found the savior for Social Security. Under Obamacare no one will live long enough to draw Social Security.
I saw the other day, that 50k people have signed up for obamacare... But 10 MILLION have found out that they are losing their current healthcare because of obamacare... Way to go Obama!!
The Fraser Institute has become so ultra critical of the healthcare system here that one has to wonder what their angle is. In my opinion, they really have no credibility anymore. This article makes it sound like the average family receives a bill for $11k every year over and above the taxes they pay, which of course is not accurate.
