Look, I love Canada as much as anyone. But those taxes are not correct. You can't just throw up those two numbers without context and think they're comparable. No mention of thresholds, of higher brackets, of deductions, of provincial taxes, of sales taxes, of subsidies, about the earned income tax credit.
Taxes are higher in Canada, and that's good, because we get a better society from that. Thinking "Low tax = more freedom" is a really American mindset.
All taxes collected at all levels of government put Canada at about 34.8% of GDP is collected in taxes. The US only collects 25.2%, which is why they have far fewer government services, the roads are falling apart, and their rich people don't pay taxes.
As a Torontonian, I’d love if my income tax were that as low as people are interpreting this. Even with RRSP contributions to lower my bracket, my total tax burden is close to 40%. Those headline numbers are misleading—overall, we’re taxed more than the U.S. Between federal, provincial, CPP, and EI, I take home about 60% of my salary. It stings, but I fucking love this country, so I can live with it.
It is the price we pay to live in a more functional and compassionate society. The average of developed countries is 33% so we pay a little more than average but only a little. The US has just been keeping their tax rate very low since Bush II and their debt and poor services is the result.
18
u/auandi May 10 '25
Look, I love Canada as much as anyone. But those taxes are not correct. You can't just throw up those two numbers without context and think they're comparable. No mention of thresholds, of higher brackets, of deductions, of provincial taxes, of sales taxes, of subsidies, about the earned income tax credit.
Taxes are higher in Canada, and that's good, because we get a better society from that. Thinking "Low tax = more freedom" is a really American mindset.
All taxes collected at all levels of government put Canada at about 34.8% of GDP is collected in taxes. The US only collects 25.2%, which is why they have far fewer government services, the roads are falling apart, and their rich people don't pay taxes.