Canada's economy can teach the U.S. a thing or two (Why our Northern Neighbor is in fine shape)

Los Angeles Times ^ | 07/12/2010 | Don Lee

[SeekAndFind]

The United States will probably take years to recover from the global recession and credit crunch, economists say, but its northern neighbor is back in fine shape.

Whatever else they've thought about their much smaller 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. healthcare system, opponents repeatedly warned that, if we weren't careful, we could end up with a medical system like Canada's.

But on healthcare, as well as on such critical 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 same issues are hardly raising eyebrows in Canada.

[kanawa]

You can verify this at any govt source, I go to Canada frequently and am 100% sure of this.

The provincial sales tax is not a national tax.
The GST is a national tax.
The HST is supposed to make it easier
more economical to collect the two taxes.
Provincial sales taxes vary by province.
Indeed in Alberta for example there is no PST.
As well some provinces haven't implemented the HST...

(1) BC will combine the PST with GST for a single value-added tax, 12% HST, effective July 1, 2010.
(2) The sales tax is applied to the total of the selling price plus the GST. The 2009 Québec budget proposes an increase to 8.5% effective January 1, 2011. The 2010 Québec budget proposes an increase to 9.5% effective January 1, 2012.
(3) The GST rate was reduced to 5%, and HST to 13% effective January 1, 2008. They were previously reduced from 7% and 15% to 6% and 14% effective July 1, 2006.
(4) Saskatchewan PST rate reduced from 7% to 5% for all sales made on or after October 28, 2006.
(5) Ontario will combine the retail sales tax with GST for a single value-added tax, 13% HST, effective July 1, 2010.
(6) Nova Scotia announced in their 2010 Budget that their HST rate will increase to 15%, effective July 1, 2010.
(7) The sales tax in PE is applied to the total of the selling price plus the GST.
link

[kanawa]

It looks to me like your talking about Ontario.
Indeed on July 1 the PST and the GST were for the purpose of collection combined into the HST.
Unfortunately I am well aware of it, being that I live there.
What makes it particularly onerous and odious to me
is that Ontario didn’t not remove the existing provincial ST on gasoline
resulting in a case of double taxation of gas on the provincial level.
Since 50% of my business expense is gasoline
I’m not too happy with the resultant ~8% increase in fuel cost.
The Liberals in charge touted the HST as away to make provincial businesses more competitive.
I see it as a 4% decrease in my net income.

[Maneesh]

Yes I was primarily talking about Ontario and in addition to gasoline the new HST hits new home sales as well. My understanding is that although the total of 13% is less than the old GST + PST, the HST now hits ALL goods and services so consumers end up paying more overall.

Gasoline is something everyone uses and I noticed that gas prices went up 10 cents a litre to about $1 a liter right after Jul 1.

[jerod]

Canada’s economy is sound largely because of Free Trade, the Goods and Services tax (GST - essentially a flat tax on everything you buy) and because our banks are far more conservative. All of these policies were enacted by a Conservative government (Mulroney in the 1984-1993), and Canada is currently run by a conservative government (Harper since 2006). The Liberals were against Free Trade and the GST and ran campaigns against both policies, but like the hypocrites they are, after making them highly unpopular policies they managed to win in 1993 running against the GST, yet they still kept both policies in place. Add to that our vast resources with massive oil and natural gas reserves, and it isn’t too tuff to figure it out. We sell more oil to the United States than Saudi Arabia does… We’ve got money.

[kanawa]

like the hypocrites they are, after making them highly unpopular policies they managed to win in 1993 running against the GST, yet they still kept both policies in place.

Yep, and then came Harper and he lowered the rate from 7% to 5%.

[Gay State Conservative]

they don’t have to spend a nickel on defense../facepalm

Canada is larger in land area (meaning territory to be defended) than is the US.Calculate how much Canada spends...per square kilometer to be defended...on defense and compare it to our expenditures on the same basis.How much more do we spend than you? Twenty times,perhaps?

You know darn well that your Ministry of Defense Headquarters isn't located in Ottawa.It isn't even located in Canada.It's located in Alexandria,Virginia,USA.

[Paladin2]

Canada still has a long way to go on gun “control” and on free speech. Multicultural issues too (beyond French and pre-French natives).

[celtictomcat]

It is hard to deny that canada weathered the recession ten times better than the americans when it should have been the opposite. They weathered it pretty well better than anyone save maybe the aussies. Whatever the reasons, there are lessons to be learned and americans should pay heed.
Ontario does suck. I live in the cesspool.
We have a liberal premier Dalton Mohammed Mcguinty who continues to tax us to death. He makes bad decision after bad decsion bringing in too many canadians of convenience to secure votes and we pay for it.
He must go. Like I said. He’s a liberal. Just like
a democrat...but even more left.

[spookay]

Now you are an economist? Hurry while you still know it all, the world is hanging on every word.

[spookay]

Now you are an economist? Hurry while you still know it all, the world is hanging on every word.

[spookay]

Yes we have taxes related to death we just don’t spend a great deal of time whining about things because it’s too damn cold to stand around and waste hot air.