Posted: Tue Sep 09, 2008 9:47 am-
CalGreenCard wrote:
Then Canada should be lobbying for its citizens too--regardless of the probability of success.
How many Canadian migrant workers are there though, not many. In fact there probably aren't that many Canadians with H-1B anymore, let alone H-2.
You've got to understand that the Canadian Govt. (at least under the Liberals) is not keen at all on having Canadian citizens move south, as they tend to be professionals, especially in healthcare, which Canada is desperately short of. Plus they tend to be high-earners, which means you don't want your tax base moving south.
Neither the US or Canadian governments have any real interest in allowing Canadian H-4 visa holders to work, just makes moving to the US more attractive.
As far as I can see the whole tax system is set up to stop it too, technically in TN-1 you are supposed to file as a non-resident (although hardly anyone does) if you do that you effectively pay the combination of US social security tax and Canadian income tax, which is far more as CPP contributions are miles lower. So this makes it more attractive to stay in Canada.
Plus Canada has the "departure tax", which appears to me to be an entirely unique tax which is expressly designed to stop people from emigrating. If you're Joe Schmoe with an RRSP, a car and only one house (i.e. not much of a tax source) you won't get hit with it, but if you're Joe slightly-better off Schmoe with a vacation home in Florida, or you're self-employed and your business is worth more than $50,000, you definitely will get hit with it.
The Americans are just as bad because of their limit on the foreign tax credit which was designed to stop wealthy people living overseas. Which is why they don't, by and large.
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Steve.