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by AzzieElbab 1986 days ago
Doesn’t Canadian tax system make higher salaries kind of pointless? Same with bonuses
2 comments

Tax in BC is about the same as California. And you don't have to pay for people's healthcare, so it might be cheaper from a 'total cost' perspective.

Sales tax is a few % points more, property tax is actually less in general for new buyers unless you've owned a place for +15 years in CA.

You don't get a mortgage interest tax deduction, but you have an UNLIMITED cap gains exemption on the house you live in that you sell in Canada, while the USA has a limit.

The tax system is overall more straightforward and not a pile of fade outs and patches like the US tax system is. Compare Canadian RRSPs & TFSAs to the entire 401k, IRA, Roth IRA, mega backdoor roth 401k, etc mess that they have in the US. There isn't a penalty to withdrawing from your RRSP so there really isn't much of a loan concept for them either. I don't think something like AMT exists in Canada.

Cost of goods in Canada are overall more expensive than the USA.

Do you think Californians or NYkers pay that much less tax?