then Canada is not really higher taxed than U.S. for middleclass because Canada has a very low FICA equivalent.
If you only look at the income tax levels alone, then Canada is higher than U.S. - mainly due to U.S. has many brackets, and more importantly, more tax deduction items.
Mortgage interest, for example, is NOT tax deductible in Canada - therefore, anyone who can afford it in Canada, would try to pay off their houses as early as possible. There is no tax incentives to carry a mortgage.
Canada also has twice as much "sales tax" - the value-added tax type, there are provincial and federal taxes on every manufactured goods sold in store, as well as services provided, such as car repairs.
All those social welfares require tax revenues to support, as Deep Creek said.
If you only look at the income tax levels alone, then Canada is higher than U.S. - mainly due to U.S. has many brackets, and more importantly, more tax deduction items.
Mortgage interest, for example, is NOT tax deductible in Canada - therefore, anyone who can afford it in Canada, would try to pay off their houses as early as possible. There is no tax incentives to carry a mortgage.
Canada also has twice as much "sales tax" - the value-added tax type, there are provincial and federal taxes on every manufactured goods sold in store, as well as services provided, such as car repairs.
All those social welfares require tax revenues to support, as Deep Creek said.
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