Sam Katz === === Al Golden ===---===3. This paper was read on site by a machine. If an error was found (like an incomplete line), the paper was spit out and you voted again.
So the lure of lower U.S. taxes depends very much on who you are and where you are going. Tax calculations on actual tax rates paid, after social security deductions in Ontario and, say, New York state, show surprisingly little difference even in the middle income range.Why krrlson is full of shit about corporate taxes:
Using Statistics Canada's measure of "purchasing power parity'' in the two jurisdictions ($1.25 Canadian can purchase as much as $1 American, even after GST and other sales taxes are added at the till), we compared the proportion of income going in taxes and social deductions. (see accompanying chart)
Result: A two-earner family with two children making $50,000 a year in Canada would pay 15.2 per cent in taxes and deductions. An American family of four making a comparable $40,000 in U.S. dollars would pay 15.9 per cent.
A Canadian family with two earners and two children making $75,000 would pay 23.6 per cent. A similar American family making a comparable $60,000 (U.S.) would pay 21.6 per cent.
At the $75,000 Canadian level, an American advantage is starting to emerge, but hardly big enough to make a move to New York for economic reasons alone.
Corporations operating in Ontario are generally taxed at a rate of 36.12 per cent. However, Ontario's manufacturing and resource industries are subject to a lower 12.12 per cent provincial tax rate. When combined with the federal Manufacturing & Processing (M&P) rate of 22.12 per cent, a corporation earning manufacturing income in Ontario is taxed at a rate of only 34.12 per cent. By way of comparison, this combined rate is generally less than the combined statutory U.S. federal and state tax rates
Canada's annual GDP today is CAN$1.23 trillion (about $1 trillion U.S.). Growing by 2/3 since 1993, it was some CAN$0.74 trillion in 1993: it is now some CAN$0.49 trillion higher than it was in 1993. Between 1993 and 2003, Canadian federal revenues did rise by 45%, or CAN$60 billion. That means that Canadian federal revenues were CAN$133 billion in 1993, and CAN$193 billion in 2003...More here.
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posted by sleslie at 9:00 PM on June 28, 2004