Why do so many Canadians think they are taxed more than Americans?

Question

I'm a Canadian living in the U.S. and don't believe this to be true when all things are considered. For example, when comparing the amount subtracted by the Canadian government for universal health care, you'd be shocked to hear about the deductions from my paycheque for my employee medical insurance, not to mention, every time I visit the doctor I have to pay a "co-pay" fee. Another example, property taxes in Vancouver for a $1 million dollar house are about $4,500; while in Houston,Texas property taxes on a $200K home are $7,500! Now that I live in the U.S. and have been researching for my move back, I quite honestly think we Canadians have had a misconception for years.

See:

http://en.wikipedia.org/wiki/Income_taxes_in_Canada

and:

http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Year_2008_income_brackets_and_tax_rates

Answer 1

You are weird!

PST+GST in where I live in Canada: 12%

Answer 2

I am a Canadian living in Southern California. I find that I am indeed taxed less in the USA. However, my employer and I pay a ton of money for medical insurance. When you consider taxes and medical insurance combined, for the middle 60% of the population it is a wash.

If youa re in the poorest 20% you are better off in Canada because the bottom 25% in the US have no coverage.

For the top 20%, you are better off in the USA.

Answer 3

This is really interesting. Maybe pitch it to the Globe as an article. I guess you pay an employee medical insurance charge because you have a decent job, whereas people with terrible jobs don't -- but everyone with an income covers medicare in Canada ... but a cool insight.

Answer 4

Couple of things you forgot.

1)In the US you can deduct your mortgage interest off your federal taxes.

2) In the US you can deduct your property taxes off your federal taxes.

3) No ferderal GST

Answer 5

YOu are not the only one,I have ever met the similiar problem before.I have good experience here though.http://health-insurance.online-tips4u.in...

Answer 6

well I dont know.  I think we get more for our tax buck than americans.  Free health care, no highway tolls etc.  So i've always thought overall we got taxed less when you include those factors.  BUt your comparison is new and very interesting to me.  I really do agree with you.

Answer 7

What about gas? We are taxed insane amounts for gas. Its about 1.40 a liter. In ON we pay 13 cents in tax as opposed to michigan's 6 cents. As for your point about property taxes, you only pay that each year correct, when you shop your taxed everyday on things you buy, your taxed harder on gas. So we think we pay more tax its because we do, we pay larger tax more frequently. Property taxes are different from location to location.

Answer 8

Well technically, the health insurance in the States is not a tax.    It's insurance.    A lot of people up here also pay for extra insurance for medicines, dentists, etc.   Also there are a couple provinces like Alberta where we have to pay Health Premiums every month.  

We have the GST and most provinces also have PST.   Those add up very quickly.

Answer 9

One huge difference for Americans is the ability to deduct mortgage payments on tax returns.  Not just the interest, but the whole payment.  Canadians pay more hidden taxes too.  

What do you pay for car insurance in the US?  In Alberta its exorbitant.

Answer 10

Not sure if you're aware, but for the past 2 years there has been an additional medical surcharge added when you calculate income tax here in Canada.  It varies depending on your income, but last year mine was $600.00, so the medical setup is not quite as good as it used to be.