The British financial world is in shock after yesterday's Budget, which hikes all taxes and creates yet another tax bracket of 50%. If you earn more than GBP 150k annually (CAD 300k or thereabouts) half of that will go to Gordon Brown. Then you'll pay enormous council tax (on your flat or house), 17% sales tax, GBP 180 for a TV license, et cetera.
150k earners are not low-skilled labor who are employed by manufacturing industries. They are, for instance, managers or financial sector employees. Managers can simply pack it in while financial services can be delivered from your laptop whether you are in a City office or on a Grand Cayman beach. I think you can see where this is going.
Nobody in their right mind will pay 50% of their income off as tax. Alistair Darling has just signed a death sentence for British economic recovery. Canadian tax on that bracket is approximately 29% and Investor/Entrepreneur immigration streams are wide open.
The Investor stream requires one to make a CAD 400k investment (managed by CIC) that will be repaid without interest five years later. Assuming a 5% annual return the gross cost of immigrating to Canada is CAD 110k, or 22k annually. British taxes would have take that from you in two months. Without knowing it, Alistair Darling might just have delivered a massive stimulus to the Canadian economy.
3 comments:
I don't disagree with your post, but there's a flaw in your argument with the following line:
"Canadian tax on that bracket is approximately 29%"
You're forgetting about provincial income taxes that increases the overall marginal rate to somewhere in between 39 and 48% (depending on what province you're in).
Plus the 29% federal bracket in Canada kicks in at only 128k Canadian dollars.
Absolutely. But then Canada doesn't have council taxes for tenants, sales taxes are not as extortionate, there's no TV license... so tax-wise Canada is still much more favorable.
And some of the worst food in the world is British - especially their breakfasts.
The food is better in Quebec, but we have the highest taxes in Canada.
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