Moving
Back to Canada: Latest News
April 12, 2012: A big myth debunked: Wealthy Canadians actually pay less tax than wealthy Americans. Really!
There is a common myth that prevails among Canadians: Wealthy Americans have low taxes compared to wealthy Canadians and as a result, Americans are richer than we are.
Well, this myth is simply not true, particularly if you are in the upper middle class and higher income brackets in Canada.
I grew up with this story, I have heard it all my adult life, and I hear it from Canadians moving back to Canada.
A comparison of taxes for someone making $400,000 per year:
| Canada: | USA: | |
| Income: | $400,000 | $400,000 |
| Federal Taxes (2012 rates) | 29% - $116,000 | 35% - $140,000 |
If you are concerned about significant tax differences between Canada and United States impacting you, think again: Canada does not have an onerous tax system compared to the United States.
BUT:
This is way too simple a comparison. There are lots of other variables that need to be taken into account. Overall taxes and financially driven lifestyle variables change by state and province.
If you have incentive to minimize your tax burden, do your math with the help of tax professionals, if required: Compare the taxes and costs of living in the particular American state and city you live in (or want to live in) with the specific province and city in Canada you live in (or want to live in). This will give you an accurate picture of what you are facing in terms of tax differences on not only your income, but your lifestyle (spending).
February 15, 2012: NEW! Advising and Consulting Service available!
"A smooth and easy return to Canada!"
After requests for more professional support and personal attention to your returning to Canada situation, I am now offering an Advising and Consulting Service...
February 6, 2012: A global migration to Canada happening?
Is there a mass global migration happening? I am getting increasing numbers of contacts from people not just moving back to Canada, but seeking out Canada for the first time - trying to immigrate to Canada. Why might this be happening? Please let me know any thoughts you might have!
November 24, 2011: UK or Australian returnees?
Are you returning to Canada from the UK or Australia? If yes, please let me know. I am building a dedicated area of the site for each of your places in order to address concerns specific to your experience. Please share any stories, insights, questions, and/or tips and I will include them in the content, with credit and thanks to you! Those that follow you back to Canada REALLY appreciate the practical and human nature of what you have to share!
November 18, 2011: Laws and rules changing - with potential impacts on returning Canadians.
Of particular note right now are lots of changes taking place legally. For example, Prime Minister Harper and President Obama have announced a new border security agreement will be released in December 2011. This will undoubtedly affect returning Canadians.
On a regulation note, Ontario just tightened up their driver's license
"reciprocity", affecting those people returning from the U.S.
or other countries. While a straight exchange used to be possible, now
there are new requirements, such as having a letter from some U.S. states
on official letterhead showing proof of driving history, producing a driver's
insurance extract, etc. While these rules are undoubtedly well-intentioned
and will hopefully ensure that new drivers in Canada are safe drivers,
they do add another layer of complexity to those Canadians moving back
to Canada.
I suggest keeping an eye on the new border security agreement when it
is released in December. It will be interesting. I will update the Moving
Back To Canada web site to reflect upcoming changes as I learn about them.
If you learn of something new that other returning Canadians might find
useful, please contact me and share your
findings, Your experiences, tips, and suggestions are greatly appreciated
by all those moving back! I get between 100 and 200 people a day to the
web site, so you are having a big impact.
October 4, 2011: Update: "What's going on in the USA?"
About 6 weeks ago I posted a request to Canadians living in USA. I asked that you let me know your reasons for moving back to Canada so that I could understand the sudden surge in visitors to this web site and be able to offer the latest tips and insights for others. Generous messages came in often daily from across America and across a spectrum of personal life situations. A huge thank you to you for your generous sharing of your experiences, fears, and hopes!
A summary of what you shared:
- The most common reason shared by you was a general or specific uncertainty
about what would happen in the future in the USA economically, politically,
and socially. One response from Florida noted a loss of work, financial
distress, and being unable to get hired again after being told they
were Canadian and jobs were now only for Americans. Others spoke of
the increasing political divide as a reason for their concern. Another
response simply identified the hard decision of whether to move their
children back to Canada in this time in America. Overall, a wide spectrum
of reasons relating to uncertainty and the nervousness this causes were
cited.
One response that captures the essence of these feelings:
"...It's an up or out mentality here, esp since the start of the recession. My (American) husband has been laid off for two years. The recession has hit us and almost everyone we know so hard....it was shocking to realize Canadians aren't suffering in this way because our govt protected us, the way they usually protect the middle class...and that's the difference between us and the US, where anything is possible, including total financial ruin, even if you're a respectable middle class person. I also went through cancer and had to keep working through all the surgeries and chemo. During this time I almost got laid off myself, and would have lost my health insurance. Had that happened, we would have been ruined. Nobody would have insured me again. Sorry but why live with this anxiety? I love NY but it's not worth it. Canada is one of the best countries in the world, and the govt is really there for the people. You know that when you live in the US,..."
- Health care concerns were the second most common reason for the sudden
surge in Canadians considering moving back to Canada. Some folks were
dealing with specific long-term ailments that they felt would literally
bankrupt them if they stayed in America. Others had personally experienced
the costs of being underinsured when an incident affected their health.
The "sticker shock" made them feel very uncomfortable about
continuing to live in the USA. While most of us have seen and heard
of such tales, obviously they are not isolated incidents or Hollywood-esque
Michael Moore type tales. The health care system in the USA is not working
for a lot of people.
On the other side of the health care debate, one Canadian living in the USA noted the opposite: "I think the us health care is better we are retired,seem to get faster help and what we would pay in taxes in Canada pays for the US health costs..."
- General life mobility was the third most common reason for moving back to Canada. From children coming to Canada to study at college/university to simply wanting a life change after working overseas for many years, Canadians are coming home. Perhaps more now than in the past.
A big thank you to all of you who responded and shared your reasons and stories! I hope this summary is of value to others considering moving back to Canada.
September 8, 2011: "Americans going to Canada to find work"
In recent history there has never been such a reversal: Americans coming to Canada to find work. It has always been the other way around.
July 26, 2011: "What's going on in the USA?"
Visits to this site from people moving back to Canada from the USA have skyrocketed in the last couple of months. July 25th saw the largest number of visitors in one day to this site.
If you live in the USA and are considering moving back, or are already returning to Canada, would you please send me a quick note as to why? I will post summary responses here for others.
Also, check out the new "Moving back to Canada from USA" resource page!
July 25, 2011: "Universities in Canada?"
Yesterday I replied to a note from a Canadian expat who was interested
in my thoughts on Canadian university options for his daughter.
There were some more details to the request that helped me say the following,
but what really surprised me was that I felt absolutely solid in saying
it:
"Help your daughter be strategically far-sighted...The very near future is your daughter's world and the big opportunities for a safe and prosperous life will not be in North America....[I suggest she] learn Mandarin and get a degree in China. Or Portugese and get an MBA in Brazil. Or an internship in India as part of a political science degree in Germany. Or ..."
Now, I am not saying Canada is not a wonderful, safe, and prosperous country - right now. But it does not take a genius to see that this will be China's century. And Brazil's. And India's. If you have a child who will reach their career peak in 20-30 years, might it make sense to prepare them now for where the best opportunities will be?
Full disclosure: I teach international marketing at a University in Canada, so I am both privy to some good data to back up my assertions and at the same time biased because of what I do. The university I teach at knows this stuff: They offer a combination UK MSc in International Business (delivered in Canada) with a Canadian MBA. Students? Mostly from China, India, South America, the Middle East, ...
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