Canada Has Lower Tax Rates Than US, Democrats Want Higher Taxes


Two stories today caught my eye. The first is that liberal Democrats are mulling tax increases, thinking that’s the way to balance the budget. So what if raising taxes on the wealthy always backfires. They have a one track mind – spend and tax. That’s it. They have nothing new to offer. No new ideas, other than new ways to tax people and spend more money. So this doesn’t come as any surprise.

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Democratic senators say they have been fighting on the defensive, scrambling to protect social spending — such as that for the Women, Infants and Children nutrition program, Planned Parenthood and NPR — from GOP-proposed cuts.

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Democrats want to take the offensive and propose higher tax rates for millionaires, companies that move factories overseas and wealthy people who make charitable contributions.

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Senior lawmakers say the debate over spending levels for the rest of 2011 is too far along to begin insisting that a six-month stopgap include tax increases to reduce the $1.6 trillion deficit.

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Then I saw at Pundit Press that tax rates in Canada are much lower than they are here in the US. No wonder they made it through the Worst Recession Since the Great Depression relatively unscathed.

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In Canada, which Americans have long called a “quasi-capitalistic” state in jest, the highest earners pay 29% in federal income taxes. For those of you playing at home, or work – that is almost 17% less than in the United States. And Canadian corporations pay nearly 50% less than their American counterparts.

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Is your head spinning yet?

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My head’s been spinning since the Democrats took control of the federal government. Good grief.

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Via memeorandum, also see PJ Tatler for more on the Democrats’ tax plan.

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