Tax Freedom day in Canada is June 6; in the United States it is April 12. In the United States, 50% of wage earners pay only 3% of the total income taxes. Do you see a problem?
” As noted in the previous post, we now have a new American law – the Foreign Accounts Tax Compliance Act (“FATCA”) — that essentially requires organizations in Canada to identify clients who are American; obtain their consent to the disclosure of sensitive personal information to the IRS or withhold the provision of a service for a failure to provide that consent. How does that mesh with the obligations of those organizations under Canada’s Personal Information Protection and Electronic Documents Act (“PIPEDA”)?
The purpose of the tax treaty between the United States and Canada is laudable: to avoid the double taxation of residents. But the problem is that the United States imposes an unconstitutional extra-territorial taxation of “United States persons” no matter where they live in the world, even in the high tax region of Canada. But one huge problem with the treaty is that it does not count HST/GST as tax. It is of course a big reason why Canadians are marred by taxes (as Gary Marr of the Financial Post says).
Petros discusses some links he found over the holidays: MF global scandal, Scotia Bank and FATCA, Mexico and FATCA, Reflexions on NAFTA