Home ownership good tax free investment in Canada natpo.st/OEiX37 – but not tax free cap gain for US citizens – renounceuscitizenship.wordpress.com/2012/08/17/u-s…
— U.S. Citizen Abroad (@USCitizenAbroad) September 19, 2012
Interesting article in today’s National Post.
Question: This article makes the point that home ownership is treated as a retirement planning vehicle for many Canadians. A principal residence is NOT a tax free capital gain for US citizens. As you know citizenship-based taxation disables US citizens abroad from retirement planning. Many US citizens are dual Canada/US citizens. 3% of the population of Canada are US citizens. How can the US prevent 3% of the population of Canada from retirement planning? This is a direct assault on the sovereignty of Canada. The government of Canada needs to wake up to this.
Does this effect of US citizenship-based taxation violate human rights laws?
Leaving aside the effect of this on US citizens abroad, this is also very bad for the “Homelanders”. This policy discourages home ownership. Obviously this will have a negative effect on wealth and financial planning in the US. If I were an investor in the US, I would invest in rental property. The US is becoming a nation of renters, and debtors with few assets.
I can’t believe that there is no serious discussion about tax reform going on during this election. There is a clear link between home ownership and wealth. A discussion of “tax rates” is NOT a discussion about tax reform. “Form Nation” has simply gone out of its mind. Every time I think about what the US is doing, I feel as though I have entered the “Twilight Zone“. There is no rationality to it at all.
Be happy you don’t live in the Twilight Zone.