The Myth is Busted: Americans are taxed MORE than Canadians!
“Yeah, free health-care and far less crime is great, but don’t Canadians pay a lot more taxes than Americans?”
No, we don’t. Americans pay more in personal income taxes than Canadians. Here’s proof.
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6 Responses to “The Myth is Busted: Americans are taxed MORE than Canadians!”
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Tod Elsewhere
Hi Tod,
Actually, at the bottom of the chart it says, “DEFINITION: Personal Income tax as a percentage of total tax collected by the country. ”
All this chart tells us is that our personal income taxes make up a smaller percentage of the total tax take than the Americans. The biggest reason for this is undoubtedly that our government takes much more in total taxes so the percentage of personal income tax is lower.
Unfortunately, we probably not only pay more in total taxes but also in personal taxes.
Very interesting. Additionally, one could make the case that they are taxed more NEEDLESSLY than Canadians, given the amount of money funneled into things like subsidizing agribusiness to compete against African substinence farmers, or maintaining enough nuclear warheads to blow up the Russians ten thousand times — just in case.
But then again, we’ve got our own pork-barrel boondoggles to brag about. I guess it’s all relative.
Much as I’d like to agree, the chart is for “Personal Income tax as a percentage of total tax collected by the country.” It doesn’t say anything about whether Americans or Canadians pay more tax overall.
In other words, the U.S. could collect, say, 30% as much tax per capita in total (income tax, sales taxes, capital gains tax, etc.) as Canada, but collect a greater portion of that 30% from income tax, and still be collecting less.
Let’s be concrete: as an example you make $200 and the U.S. collects $50 in total taxes, while Canada collects $100 in total taxes. In the U.S. 37.7% of that tax is income tax (almost $19 of the $50). In Canada it is 35% ($35 of the $100). $35 is still more than $19, and $100 is still more than $50.
Or it could be the reverse, with Canada charging less overall. This chart doesn’t say anything either way.
Welcome back Tod. Hadn’t seen your blog for a while because I thought it was still down
Just too swamped to be on my blog these days!
I’m so sorry we didn’t get a chance to meet at the charity bowling event.
t
Interesting data. But even if Canadians pay more per capita in taxes, as an American, I see this as totally moot.
Your ROI with your government is much, much higher than ours. Your taxes more than pay for themselves. For us, on the other hand (whatever we pay), it only buys us more debt to China, a looooong “war,” a health care system that fails us miserably, and very expensive college degrees.
Your families will never know what it’s like to have to declare bankruptcy because of you owe hundreds of thousands in health care debt, or have to choose between health care and child care. You’ll probably never have an overpass on a major highway crumble beneath you (unless you drive on Seattle’s viaduct), and you’ll probably be able to get a college degree without going $80,000 in the hole for it.
Whatever way you slice Canada’s/America’s tax burden, and least you guys get more for your money.
Now, fine Canadians, I’m off to get an eye exam in your lovely, tax-filled country.