Tuesday, May 19, 2009

U.S. suffers a bigger government than Canada?

Really, really interesting comparison in the Washington Post of how Canada and the U.S. stack up in terms of size of government, expenditures, taxes and the like. Basically, Canada has been cutting government expenditures and taxes over the past few years, even as spending and taxes rise in the United States. For instance, government spending as a percentage of GDP has dropped in Canada from 53% to 40%, while the same measure has risen in the U.S. to 39% and is poised to go higher.

Also, if President Obama follows through on his plan to raise taxes, Canada and the U.S will have the same top average tax rate at 46%.

Overall, Canada and the U.S. are closing in on the same numbers. The difference is that Canada has been trending toward smaller government, while the U.S. has been trending toward a larger state. The lines are in the process of crossing.

Oh, and by cutting government spending, Canada has managed to balance its federal budget every year since 1998. The U.S. ...

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