With the current American political environment, wealthy Americans may be fearful of a democratic party takeover that would likely result in higher taxes. The only way to dodge a higher tax rate is to leave the country. With few nearby options available, one of the only viable options may be moving to Canada. While the American perception is that Canada is a quasi-socialist economy with high taxes, Canada’s top federal income tax rate is 33 percent — lower than the equivalent rate in the U.S. It may seem unlikely for Canada to be a tax haven, and it remains to be seen how those affected would respond to a tax increase.

“Taxes on rich Americans are probably going up if Democrats win both the presidency and Congress anytime soon. If and when taxes are raised, an interesting question is how those affected will respond. “

Read more: https://www.bnnbloomberg.ca/imagine-canada-as-a-tax-haven-for-americans-1.1213483