Tax rates show U.S. income gap

tax Pictures, Images and Photos
A lot of people often wonder if taxes are higher in the U.S. or Canada. The answer is not so cut and dry because it depends on many factors like income level and which part of each country one lives in (state and provincial taxes vary). It’s easier to look at the issue in more general terms even though it is less precise. In general, if you are a low to middle income earner then you’re better off in Canada from a tax perspective. If you’re a high income earner then you want to live in the U.S.

This fact says a lot about the relatively large and growing income gap in the U.S. compared to Canada, which is the easiest and most similar comparison between countries that you can make. Poor people are taxed more and rich people are taxed less than their Canadian counterparts. This is the opposite of what the U.S. should be doing. This is not a recipe for long term growth and success for a country. By looking at this fact, Americans should have an easy time deciding who to vote for in the 2012 Presidential election. In order to shrink the gap and make the country and economy more sustainable, you would essentially have to vote Democrat since Republicans are looking to widen this gap.

This income gap that is helped by the current U.S. tax rates is becoming so clearly imbalanced that several rich Americans have openly said that they pay too little in income tax compared to lower income individuals. When you have sane people say that their tax rate is too low, that’s a good indication that there is something wrong with the tax code and that rich people should carry a higher tax burden. Now I’m no fan of taxes. If we could live in a utopian society there would be zero tax for everyone. Unfortunately, that utopia does not yet exist and until then, smaller income gaps are better than larger ones. The way to help achieve that is by increasing the tax on the rich.