What do Ryan Gosling, Ryan Renolds, Keefer Sutherland and William Shatner have in common? How about Celine Dion, Michael Buble, Justin Bieber and Drake? Here’s a few more… James Cameron, Seth Rogan, Ivan Rietman, Peter Jennings, Keith Morrison and John Roberts and finally Wayne Gretzky.
These are just a few of the multi-million dollar actors, entertainers, musicians and sports figures that have left Canada and established American residence. Why? It can't be because of travel issues, you can reach virtually any city in the world from one of Canada’s major international airports. No it’s because of our taxes! Anyone in these industries that are either a success or see success on the horizon seek out US Visa’s, Greencards and Citizenship as soon as they can. In addition to the approximate 1,200 that fall into the above categories there are even more in education, business, education and medical professions.
Why do they leave? Very simple just take a look at the following Income Tax comparison.
At CDN$100K you are paying more, percentage wise, on your earnings than someone in the US making US$630KUS (thats CDN$1M). So if you had the chance to keep 15%, 20%, 25% or more of your "hard earned" money wouldn't you want to bail as well?
This being said then what is the impact on the middle class when they make up the top 5% of wage earners leave the country? Well of course you are expected to bear the brunt, You are taxed, tariffed and used fee'd into submission. According to a Globe and Mail article in 2014 when Jean Chrétien became Prime Minister, personal income taxes represented 44 per cent of government revenue. By the time Stephen Harper took over in 2006, the share was up to 46 per cent. In 2018, personal income taxes will account for 50 per cent of total federal revenue! Corporate taxes currently make up 14 per cent of total revenue. Other taxes, including the GST and tariffs, account for 17 per cent.
The Liberal government is counting on the 264,030 taxpayers who make up Canada’s top 1% to help fund billions in campaign promises. The Liberal platform however promised to raise taxes on the top 1 per cent. Interestingly the income cutoff for entry into the 1% club is now $222,000 nationally. I'm thinking that we are going to drive even more of the 1% club out of Canada.
I am a concerned Canadian that is fed up seeing companies and people leave Canada due to the high cost of doing business and living.