Canadian Tax vs US Tax

[August1991]

1. Americans have no federal VAT (consumption tax). In Canada, we do. We have GST and also standardised HST or PST. (In Quebec, VAT is about 15%.) Mulroney created our GST.

2. In America, they can claim their state/local/property taxes (SALT) as a deduction to reduce their federal taxes. In Canada, we can't. (Trump tried to make America like Canada.)

3. In America, they can claim mortgage payments as a deduction from federal income tax. In Canada, we can't. (Clark in 1979 tried to change this.)

4. Our RRSP is like their 401k and our TFSA is like their IRA/Roth. (Their 401k is tied to employer, it took Harper to create our Roth.)

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Canada's government debt to GDP ratio - while growing - is still well below 100%. Like Norway, we have accumulated paper claims on the future.

In the US, the debt to GDP ratio is well above 100%. Their social security pension scheme - more generous than our CPP/OAS- is pay as you go. As Krugman says, "the US federal government is a tank with a pension and health insurance". 

Edited April 21, 2022 by August1991

[ExFlyer]

Who is Krugman?

[August1991]

On 4/21/2022 at 10:21 AM, ExFlyer said:

Who is Krugman?

A leftist American economist.

[ExFlyer]

10 hours ago, August1991 said:

A leftist American economist.

Your quote "the US federal government is a tank with a pension and health insurance" makes no sense.

[August1991]

On 4/23/2022 at 8:07 AM, ExFlyer said:

Your quote "the US federal government is a tank with a pension and health insurance" makes no sense.

The US federal Social Security is more generous than our Canada's CPP/OAP.

The US federal Medicare is more generous, better than our provincial health care.

Do the numbers.

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As Krugman said, the Americans have tanks and health care. Whatta neighbour!