My friend lived in Canada and the United States. Although these two countries are similar in many aspects, they are quite different in their economic philosophy.
The Canadians pay higher taxes but are able to enjoy many social services provided free or highly subsidized by the state, such as health care, education and security. The Americans pay lower taxes but have to pay more for their private health care and also to take care of their security.
Although America claims to have lower taxes, they are not collecting sufficient tax to pay for their medicare, social security and unemployment benefits. This has resulted in their large budget. deficit.
Americans dislike the word "socialist". In Canada, socialism is considered to be desirable. He finds the Canadian system to be better for the people.
Tan Kin Lian
I am a Canadian now working in the US, and I totally agree with your friend's statement. After paying for health insurance and other things, the tax is almost the same for the 2 countries. For me, Canada will always be home.
ReplyDeleteMy client in the US pays about 50% income tax. I don't think this is low. He likes working in Singapore which he has done before because of the low tax regime. The only thing he didn't miss about Singapore is the humid weather.
ReplyDeleteSocialism is not free, it taxes people. As to why America government are not collecting sufficient tax to pay for social benefits, there are a few reasons.
One of it is that America is fighting 2 wars, Canada is not. It is reported it costs the US government USD1 million per annum to send an American soldier to go into war. Billions spent on bailouts of financial firms that were deemed 'too big to fail'. Motor companies were bailed out too. Public sector pay more than private sector pay.
I do not see how these spending benefits the American people.
"Too big to fail" concept is alive and well.
ReplyDeleteThe governments will never ever allow any to fail.. including Greece.
Do you want world war 3?
Think.
It will not fail, banks will continue and have resumed lending again.
How about this view suggesting that the U.S. to adopt VAT tax.
ReplyDeletehttp://www.businessweek.com/investor/content/mar2010/pi2010035_752130.htm