Friday, January 4, 2013

Taxes USA vs Canada

Alexei Sadeski on Effective AND nominal rates USA vs Canada.
Income: 38
State Income: 10
Cap Gains: 36
Corporate: 46
Estate: 40

Income: 29
Provincial Income: 15
Cap Gains: 22
Corporate: 27
Estate: 22

Because Canada has such low Capital Gain and Corporate rates, high net worth individuals are able to lower their tax liability dramatically by funneling income through corporations. In the US, this is not as useful – the US has one of the highest corporate tax rates in both the world and OECD.

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