The Coming Tax Increases in USA. Why americans should consider moving to Canada

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Source:The Economic Collapse blog

Unless the U.S. Congress acts, there is going to be a massive wave of tax increases in 2011.  In fact, some are already calling 2011 the year of the tax increase.  A whole host of tax cuts that Congress established between 2001 and 2003 are set to expire in January unless Congress chooses to renew them.  But with Democrats firmly in control of both houses that appears to be extremely unlikely.  These tax increases are going to affect every single American (at least those who actually pay taxes).  But this will be just the first wave of tax increases.  Another huge slate of tax increases passed in the health care reform law is scheduled to go into effect by 2019.  So Americans that are already infuriated by our tax system are only going to become more frustrated in the years ahead.  The reality is that the U.S. government will soon be digging much deeper into our wallets.
The following are some of the tax increases that are scheduled to go into effect in 2011....
1 - The lowest bracket for the personal income tax is going to increase from 10 percent to 15 percent.
2 - The next lowest bracket for the personal income tax is going to increase from 25 percent to 28 percent.
3 - The 28 percent tax bracket is going to increase to 31 percent.
4 - The 33 percent tax bracket is going to increase to 36 percent.
5 - The 35 percent tax bracket is going to increase to 39.6 percent.
6 - In 2011, the death tax is scheduled to return.  So instead of paying zero percent, estates of $1 million or more are going to be taxed at a rate of 55 percent.
7 - The capital gains tax is going to increase from 15 percent to 20 percent.
8 - The tax on dividends is going to increase from 15 percent to 39.6 percent.
9 - The "marriage penalty" is also scheduled to be reinstated in 2011.
It is being estimated that the total cost of these tax increases to U.S. taxpayers will be $2.6 trillion through the year 2020.
Ouch!
But wait, there are even more tax increases coming.
The "health care reform law" contains over a dozen new taxes that will be implemented in stages over the next decade.  When you add all of these taxes to the taxes that were mentioned earlier, the result is going to be absolutely devastating.  According to an analysis by the Congressional Joint Committee on Taxation the health care reform law will generate $409.2 billion in additional taxes by the year 2019.
Double ouch!
So is it any wonder why the public has such a low opinion of the U.S. Congress?
Every single major poll done on the topic shows that approval ratings for Congress are at record lows.
For example, Gallup's 2010 Confidence in Institutions poll found Congress ranking dead last out of the 16 institutions rated this year.
Of course there are a whole host of reasons why the American people are upset with Congress, but one of the big ones is the fact that we are literally being taxed to death.
However, it is not just federal income taxes that are killing us.
In a previous article entitled "Taxed Enough Already!", we listed just a few of the taxes that Americans have to pay each year....
Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Court Fines (indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel permit tax
Gasoline Tax
Gift Tax
Hunting License Tax
Inheritance Tax
Inventory tax IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Payroll Taxes
Property Tax
Real Estate Tax
Recreational Vehicle Tax
Road Toll Booth Taxes
Road Usage Taxes (Truckers)
Sales Taxes
School Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax
Toll Bridge Taxes
Toll Tunnel Taxes
Traffic Fines (indirect taxation)
Trailer registration tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft registration Tax
Well Permit Tax
Workers Compensation Tax
Are you dizzy yet?
The reality is that the American people are being drained in dozens and dozens of different ways.
But what did you expect?
Did you think that our politicians would pile up the biggest debt in the history of the world and never ask you to pay for it?
Did you think that we could run deficits equivalent to about 10 percent of GDP without ever seeing tax increases?
The truth is that the U.S. government needs a whole lot more money than even these new tax increases will bring in.
After all, it is being projected that the U.S. government will be spending $2 trillion on the interest on the national debt alone by the year 2020.
To put that in perspective, the entire budget for the U.S. government is less than $4 trillion for 2010.
Are you starting to get the picture?
In the years ahead the IRS is going to be digging deeper and deeper into our pockets and a gigantic chunk of that money is going to go directly into the pockets of those who own our debt.
But very few Americans wanted to listen when this problem was actually somewhat fixable 20 or 30 years ago.
So now we are all going to pay the price - literally.

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Opportunities Ontario: Applying as an International Student (Pilot International Masters Graduate Stream)

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If you are a graduate or will soon be graduating from a Masters program from one of Ontario’s publicly funded universities, you may be able to apply to Opportunities Ontario for nomination as a permanent resident, under the International Student Category’s Masters Graduate Stream.
Ontario’s Masters Graduate students do not require a job offer.
Here is some information that will help you complete the application process:

Who can apply as an international Masters graduate in Ontario?

In order to apply to Opportunities Ontario as an international Masters graduate in Ontario, students must:

• Intend to live and work in Ontario.
• Have graduated from an existing Masters program at an eligible publicly funded university in Ontario.
• Have completed a minimum of one academic year degree program, while studying on a full-time basis.
• Apply within two years of the date on which their Masters degree was granted, or in the alternative, during the last semester of completing their degree.
• Currently be residing in Ontario.
• Have legal status in Canada (i.e. study permit, work permit, temporary resident visa)
• Demonstrate high official language proficiency (For English language proficiency – IELTS – General test with a minimum score of 7 or higher) (For French language proficiency – TEF – with a minimum score of 5 or higher).
• Demonstrate a minimum level of savings/income to support themselves and their dependants.
• Demonstrate at least one year of residence in Ontario in the past two years.

You will need to submit the following documents to demonstrate that you meet Opportunities Ontario eligibility criteria and to confirm your identity, family situation and education:

• A copy of your birth certificate.
• A copy of all the pages of your passport. All prospective nominees should ensure that their passports will be valid for at least two years from the time that they submit their nominee application.
• A copy of your work permit, study permit, temporary resident visa, and/or any other Canadian immigration document or entry stamp you have received. If these documents are inside your copied passport, you do not need to make additional copies.
• Copy of each dependant’s passport page which shows his/her photo and personal information.
• A certified true copy of relevant university degree(s) if the degree has been granted. If the degree has not been granted, you will need to submit:
  
  • Official letter (on institution letterhead) from the university which will be granting the Masters degree confirming:
    1. all degree requirements have been successfully completed;
    2. there are no outstanding fees to be paid; and
    3. the scheduled date when your degree will be granted.
  • Official transcripts in sealed envelope sent directly from the academic institution which will be granting the degree.
• If you are in your last semester of Masters studies, you will need to submit:
  
  • Official letter (on institution letterhead) from the academic institution which will be granting the degree confirming full-time registration and the current academic standing of the applicant
  • Official transcripts in a sealed envelope sent directly from the academic institution which will be granting the degree
• A copy of your current resumé.
• The original score of your IELTS – General test with a minimum score of 7 or higher or TEF – with a minimum score of 5 or higher (obtained within the last year).
• Personal bank account monthly statements for the past 6 months, or (if overseas) an original letter and monthly statements from a recognized financial institution indicating personal account standing/balance in accordance with the following schedule:
• 
  

• Number of family members	Funds required
  1	$11,086
  2	$13,801
  3	$16,967
  4	$20,599
  5	$23,364
  6	$26,350
  7 or more	$29,337

• A copy of ONE of the following to show proof of 1 year of residency in Ontario:
  
  • Monthly credit card statement, phone, hydro or energy bill in any accumulative 12 months in the past 2 years showing your full name and Ontario address
  • Leasing document or rent receipts demonstrating residence in any accumulative 12 months in the past 2 years showing your full name and Ontario address
  
  
  

  How quickly will my application be processed?

  Complete nominee application packages will be processed within 90 days, on a first-come-first-served basis.
  Opportunities Ontario will target 1,000 nominations for 2010. Priority assessment will be given to those applicants who can demonstrate the strongest potential to settle successfully and permanently in Ontario.
  

  What are the fees?

  Opportunities Ontario will charge a non-refundable nominee application processing fee of $1,500 for all international students.
  

  What happens after I am approved?

  A Provincial Nomination Certificate will be issued for all successful nominees. Successful nominees must then apply to Citizenship and Immigration Canada (CIC) for permanent residence. A successful provincial nomination replaces the selection component under other immigration classes (such as the Federal Skilled Worker Class, and the Family Class). Provincial nominees will receive priority processing from CIC.

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U.S. job seekers should move to Canada

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A popular U.S. website has a unique suggestion for Americans desperately seeking work.
The advice? Move to Canada.
There's a fluttering Maple Leaf on the homepage today of the Huffington Post, a site popular for its news and celebrity blogs.
The accompanying headline says: Need A Job? Try Canada, Where Hiring Is Booming And Home Prices Are Rising.
That article comes amid news that Canada's economy added a whopping 93,200 new jobs last month; the U.S., meanwhile, continues to struggle with unemployment woes.
The bottom of the HuffPost article carries a poll, asking people whether they would be willing to move to Canada for work.
The early results of that poll – which is by no means scientific: Fifty-five per cent said they'd move to Canada if that's where the jobs are, while 19 per cent said they'd stay in the States.
The article tells readers: “Stubbornly high unemployment rates got you down? Not sold on the economic recovery? Look no further than America's polite neighbor to the north, where jobs numbers are surging and home prices have been rising steadily for nearly a year.
“Last month, Canada, a nation with roughly one tenth of our population, created about 10,000 more new jobs than America.”

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Private sector fuels surge in jobs in Canada

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Jeremy Torobin

Ottawa — From Saturday's Globe and Mail Published on Friday, Jul. 09, 2010 7:06AM EDT Last updated on Monday, Jul. 12, 2010 10:37AM EDT

After weathering a brutal downturn that knocked hundreds of thousands of Canadians out of the work force, Central Canada’s job machine is back and revving into high gear.
The country’s remarkable rebound from recession gained momentum in June, as surging job growth in Ontario and Quebec underpinned an increase of 93,000 jobs and unemployment fell below 8 per cent for the first time since early 2009, Statistics Canada reported.
Ontario produced 60,000 jobs in June, and Quebec added 30,000, as employment soared in the services sector, including gains in retail, health care, trade and building services.
Importantly, the June jobs report showed the private sector continues to pick up the baton from the public sector, which has long supported the economy with a massive stimulus spending package on the order of $62-billion.
The private sector has accounted for more than 246,000 new jobs over four months, a welcome trend for Canadian policy makers who have long urged companies to take the lead on economic growth as government stimulus spending tapers off in the second half of this year.
The stunning employment gain was close to the highest on record, second only to an increase of about 109,000 jobs two months earlier. The June hiring brought the combined total of new positions created since last July to 403,000, restoring most of the jobs lost during the recession. The jobless rate dropped to 7.9 per cent from 8.1 per cent.


“The jobs picture clearly shows that the Canadian recovery hasn’t stalled yet,” said Benjamin Reitzes, an economist with BMO Capital Markets. “The handoff from public to private spending looks to be going smoothly.”
The jobs report, far stronger than expected, also lays the groundwork for another interest-rate hike later this month, following a quarter-point increase by the Bank of Canada in early June, economists said. The quickly improving jobs picture, along with rising interest rates, stands in sharp contrast with the still-sluggish economy south of the border. Only a fraction of the more than eight million jobs lost in the United States between late 2007 and late 2009 have been restored, while the U.S. Federal Reserve shows no sign of raising its near-zero interest rates any time soon.
The Canadian dollar soared by nearly a full cent against the U.S. dollar Friday, as investors bet that Bank of Canada Governor Mark Carney will raise the benchmark interest rate by another 25 basis points on July 20 to 0.75 per cent.
But economists caution that Canada’s economy and job creation are not guaranteed to continue at the current clip.
Since June 1, when Mr. Carney became the first central banker in the Group of Seven to lift borrowing costs, the European debt crisis has produced a march toward austerity in the world’s rich economies, a cure which some analysts warn could prove painful. Also, the recovery in the United States, Canada’s top export market, looks increasingly fragile, as housing and the labour market sputter. And there are fears that measures to keep emerging-market economies such as China’s from overheating could cool a vital source of global demand.
For export-heavy Canada, where the housing market is already slowing down, that means it’s highly unlikely that the current pace of job creation, let alone the first quarter’s 6.1-per-cent economic growth rate, are sustainable.
“Any realistic look at what’s happening in the U.S., Europe, China, suggests that the second half of this year will be much, much weaker than the first half,” Benjamin Tal, deputy chief economist at CIBC World Markets, said. “This recovery is going to be the most nonlinear recovery in ages. The story will not be as pretty three months from now.”
Mr. Carney later this month will release his latest forecasts for Canada and for key countries and regions around the world. Most economists, including Mr. Tal, say things are good enough in Canada for now that the central bank will probably keep raising interest rates in 25-basis-point increments until the benchmark rate is at 1 or 1.25 per cent, but then policy makers will pause to assess how much global headwinds are affecting the domestic economy.
Michael Gregory, a senior economist at BMO Capital Markets in Toronto, on Friday predicted “a pattern of oscillating rate hikes and pauses” as Mr. Carney takes a cautious approach.
Another concern is the type of jobs being created. Retail and other service-sector jobs tend to be more temporary, based on flexible hours, and are often lower-paying, economists said. The goods-producing industries that make many of Canada’s exported products saw a net job loss in June.
Still, Canada’s job gains are far brighter than in the United States, where the jobless rate is still 9.5 per cent and in recent months has dropped only because discouraged job-seekers have stopped looking and thus aren’t counted as part of the labour force.
Mr. Carney started warning in April that Canada's rebound from the crisis would slow considerably starting in the second quarter because of a slowdown in housing, the impact of the loonie near parity with the U.S. dollar and the inevitable end of government support.
Pointing to those factors, plus “uneven” global growth and sovereign-debt worries, Mr. Carney has said several times that a return to more normal interest rates is not “preordained.’’
On Monday, he will release a closely watched survey of executives from across the country, which will give a sense of how worried businesses are about Canada becoming a victim of economic problems from outside its borders.
“I have doubts about whether the economy is going to be able to keep up the head of steam that it has right now,’’ said Carl Weinberg, chief economist with High Frequency Economics in Valhalla, N.Y. “The U.S. economy is questionable, Europe is in trouble, Japan is in trouble, all the major trading partners are hurting and the loonie is quite strong,” he said. “So it’s hard to look at the months ahead and draw a strong line on the chart for where GDP is headed.”

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U.S. might pick up tips from Canada’s economic rebound

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Washington — Whatever else they’ve thought about their neighbor to the north, Americans have almost never looked to Canada as a role model.
Indeed, during the long, bitter push to revamp the U.S. health care system, opponents repeatedly warned that if we weren’t careful, we could end up with a medical system like Canada’s.


But on health care, and such crucial issues as the deficit, unemployment, immigration and prospering in the global economy, Canada seems to be outperforming the United States. And in doing so, it is offering examples of successful strategies that Americans might consider.
While the United States, Japan and much of Europe are struggling with massive fiscal deficits, Canada’s financial house is tidy and secure. Most economists say it will take years for the United States to make up the 8 million-plus jobs lost during the recession, but Canada — despite its historic role as a major supplier for the still-troubled U.S. auto industry — already has recovered essentially all of the jobs it lost.
Meanwhile, as Americans continue their grueling battle over immigration, Canadians have united behind a policy that emphasizes opening the door to tens of thousands of skilled professionals, entrepreneurs and other productive workers who have played an important role in strengthening the Canadian economy.
Granted, Canada’s problem with illegal immigration is smaller, and its economy does not match the scale and dynamic productivity of the world’s largest. But on the most troubling issues of the day, the U.S. is locked in near-paralyzing political and ideological debates, while those issues are hardly raising eyebrows in Canada.
“We did a lot of things right going into the financial crisis,” said Glen Hodgson, senior vice president at the Conference Board of Canada, a business-membership and research group in Ottawa.
One of the most important, he said: Back in the 1990s, Canada cleaned up the fiscal mess that most every developed nation is now facing.
Earlier that decade, Canada too was straining from years of excessive government spending that bloated the nation’s total debts, to 70 percent of annual economic output — a figure the U.S. is projected to approach in two years.
As with Greece, Portugal and Spain this year, Canada’s credit rating was downgraded in the early 1990s, sharply raising its borrowing costs. With its economy suffering and pressure mounting from international investors — Wall Street bankers in particular — Canadian officials slashed spending for social programs and shifted more of the cost burden to provincial governments, which almost everyone in Canada felt.
With the economic downturn, Canada pumped up public spending to stimulate growth, as other nations did. Still, its fiscal shortfall this year is projected at $33 billion, comfortably below the 3 percent-of-GDP threshold that economists consider a manageable level of debt.
Washington’s deficit this fiscal year is estimated by the Congressional Budget Office at $1.35 trillion — or 9.2 percent of projected GDP.
The United States’ larger size — its population and economy are roughly 10 times those of Canada — makes direct comparisons difficult. And many Canadians readily acknowledge that American entrepreneurship and productivity are enviably stronger.
“U.S. businesses are certainly looking at lessons learned from Canada,” said Bart van Ark, chief economist at the Conference Board in New York. “In a nutshell, Canada has been very pragmatic in dealing with the economy.”
Canada’s approach to immigration is one example. With one of the highest immigration rates in the world, Canada has been receiving about 250,000 permanent residents annually. About one-fourth of the new arrivals gain entry through family relations, but more than 60 percent are admitted as “economic immigrants” — that is, skilled workers, entrepreneurs and investors.
In the U.S., it’s basically the reverse: Most of the 1 million-plus permanent residents received annually have been family-sponsored; only about 1 in 7 are admitted based on employment preferences. That is, Washington emphasizes bringing in family members of immigrants already in the U.S. Ottawa puts the emphasis on admitting those who can contribute to the economy.

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