"When Canadians think of tax havens, they rarely think of the U.S., but it truly is one of the best options available for Canadians today," according to Robert Keats, an internationally renowned expert in Cross-border financial planning and author of the book "A Canadian's Best Tax Haven: The US".
If you are eligible for the OAS pension and have lived in Canada for more than 20 years, you could maximize income from your Canadian public pensions on an after tax basis by leaving Canada and emigrate to the U.S. Here are the tax benefits for Canadian Non-residents residing in the U.S. receiving Canadian public pensions:
12.1 Taxes
Non-Resident's Tax
Because of the tax treaty between U.S. and Canada, the income from Canadian public pensions payable
…show more content…
as a resident, the income from Canadian public pensions is taxed in a manner similar to U.S. Social Security benefits. That means married couples with incomes of less than US$32,000 (including the Canadian public pension income) or a single person with less than US$25,000 of income do not pay any U.S. tax on this income. Consequently, the income from Canadian public pensions is completely free from both Canadian and U.S. taxes for people in this income bracket. For those at the higher income levels, only 85% of the Canadian public pension income is taxed at the standard U.S. tax rate; the other 15% is …show more content…
taxes and can potentially be double-taxed or overtaxed by the U.S. and Canada. But they can be a great source of tax savings if you plan for them correctly. An optimized solution is to remove your RRSPs out of Canada with as close to zero net tax as possible. However, this is one of the strategies that you should not attempt to implement on your own. I recommend you use an experienced cross-border financial planner who is trained in all aspects of Canadian and U.S. investments and tax to guide you in the right direction.
12.4 Complications
But retiring and living in the US might not be for everyone. There are some of the issues and implications:
Healthcare – as a non-resident of Canada, you will not be covered by Canada's publicly funded healthcare system.
U.S. Estate Taxes – as a U.S. resident, you are subject to U.S. estate taxes on your worldwide assets. The maximum tax rate in 2014 is 40%.
Giving Up Canadian Residency – In order to be deemed a non-resident of Canada, you have to sever your ties with Canada. That means you have to sell your principal residence, close all your bank and investment accounts, and plan not to return to Canada for at lease two years after leaving,
Today Canada and the United States are major trading partners, allies, and two neighboring countries with a long history of cooperation with each other. But is it possible for Canada to protect its independence and culture living next door to the country so powerful and rich as the United States. Since the Canadian confederation, Canada started developing relations with the U.S. As the years passed by, Canada began to relay on the United States in the national defense. Many Canadians think that the military, political and economical dependence would not make a difference to their daily life. But today more then even Canadian culture is affected by the American influence. Media, American artists, economic dependence, American propaganda and political pressure from the United States is making Canada too Americanized. All of these factors reflect on the social life of ordinary Canadians threatening the heritage and the traditions that define Canada as independent country.
One of Mel Hurtig's mentors was George Grant. Foresaw the selling out of Canada and spoke about in his book Lament for a Nation which was published in 1965. He said as Mel quotes him in his own book:
Our group chose Canada because we feel that there are many similarities between our culture in the United States and the culture in Canada. Comparing the economies of these two nations shows that they are nearly identical. If combined, Canada’s and the United States’ economies would be the world’s largest economy; therefore, it would be advantageous to incorporate in both nations.
Since 1914, Canadian Human Rights laws have had a positive impact on helping to shape Canadian identity as one that is welcoming to various minority groups. Being a Canadian citizen provides you with the freedoms to travel, and settle in Canada at your own will and desire. Also, the freedom to express your sexual orientation is welcomed and well supported in many communities. Modern discrimination against categorizing human beings is very slim and everyone of all ethnic or cultural backgrounds are welcome with respect and good intentions. Canada is an extremely welcoming and protective place, in which nearly everything is done to promote equality, and a safe country.
...ther through income tax or GST, as they are all ultimate benefactors of socially optimal policy. Thus, the tax would be reinvested in benefiting Canadians.
This constant income has proven to support our economy by more than just improving life quality. Canada’s three main exports also allow Canada to keep a more balanced budget. With an extensive amount of money being put into importing goods from other countries, exporting gives Canada a fighting chance against the terrible trag...
Spicer, Keith. 1991. Citizen’s Forum on Canada’s Future: Report to the People and Government of
The Canada-U.S. trade relationship is not static. Political and business strategies and practices change on both sides of the border, and events occur such as "mad cow disease" that are beyond almost everyone's control.
Which in turn, created a whole new set of problems or rather anxieties for Canada due to the fact that now, “[The United States] are now the primary market and source of investment for Canadian commerce” (Bow, p. 346). Now instead of the essence of the threat being a physical invasion of the United States, Anti-Americanism in this time period derived from a threat of economic and cultural assimilation. Canada throughout this time period continues to find ways in order to separate themselves from their Western counter-parts. This was especially evident during the 1960s where, “the social and political turbulence… provoked a new wave of liberal anti-Americanism in Canada, focusing on a supposedly endemic pattern of racial conflict, urban violence, cultural polarization and political corruption” (Bow, p. 346). Due to those issues in the United States the sentiment has been more social among its people and it shows with different implementations of policies that Canada has placed or tried to place in order to separate themselves and as a country make themselves look better than the “super powered” United States by comparison. As a result, Canada became to be “proponents of universal health care, national welfare and pension programs and post war social programs…” (Bow, p. 347). The sentiment would evolved further due to the issues regarding the Vietnam war, which not only created a perception that, “America is by nature inclined to an aggressive self destructive foreign policy” (Bow, p. 348), but also is the “first Cold war crisis in which Canada chose to stand apart from the United States, and this affected not only Canadian diplomats’ capacity to influence U.S. decisions, but also Canadian public perceptions of what the war said about American values and priorities” (Bow, p. 348). During the Vietnam war the U.S were mostly criticized for acting
The current issue of inadequacy of social inclusion of recent elderly immigrants in Canadian is directly related to the lack of a long-term, multi-dimensional and pan-Canadian
Canada’s health care system is one of the top in the world; due to the federal legislation for publicly funded health care insurance. Requiring provinces and territories to follow certain conditions and guidelines to maintain universal health care, which is known as the Canada Health Act passed in 1984. There are five main principles within the Canada Health Act; public administrations, comprehensiveness, universality, accessibility, and portability. Moreover there are three aspects within the principles, equity, access and undeserved. Several marginalized populations do not receive the adequate health care even though the Canada Health Act is in place to help “protect, promote and restore the physical and mental well-being of residents of
People outside of Canada are baffled at how Canada ended up in such a state of affairs. Canada as a country has a lot going for it. A high GNP, and high per capita income in international terms. It is ranked at the top of the...
Not only do we have a lot to offer Canadian citizens, here is a list of reasons to immigrate to Canada provided by KAM International:
Being an international student is exciting. It offers a lot of exposure and scope for improvement. Canada has a lot of institutions that accept foreign students, but before that, the practical difficulties an international student might face in the country should be noted.
Retirement comes early for most people. Early meaning that we are not ready for what comes with it. Most people would love to retire today, but unfortunately it is nearly impossible. It takes a lifetime for a person to become financial stable and adequately equip with assets that have been gained throughout someone’s life. Everyone must start young, in fact the sooner the better. Any money, or savings that can be applied today will always come with an enhanced future. So is it worth it to work harder and save now in order to possibly access a pleasant retirement? With out effort now we will be dependent on other sources in our retirement years, sources that may not come through for everyone who needs it. There are three ways to help Americans be better prepared now. These methods include saving money now, and investing in sources with returns. Do not become one of the millions of Americans who fall into government assisted retirement plans by lack of preparation and planning.