Rising state and federal tax rates for those making more than $250,000 a year is preparing the field for class warfare, says Dave Rosenberg, and fueling an exodus from the United States to Canada as well.
Rosenberg is chief economist and strategist at Gluskin Sheff + Associates Inc., a Toronto-based wealth management firm.
Rosenberg says he can’t recall a time when the potential returns in Canada looked so attractive compared to the United States while the risks are so much lower — fiscal, economic, financial and political.
“Now we see that Senate Majority Leader Harry Reid is planning a slate of tax rate hikes on the upper class (defined to mean anyone making over $250k). . . not to mention the $460 billion confiscation being planned as part of a new 5.4 percentage point surtax,” Rosenberg writes in a daily note.
“No wonder immigration into Canada is running at a 4 percent annual rate and foreign applications at Canadian universities surging at a 7 percent annual rate at this time — the reverse brain-drain is in.”
Even the far-less-than-wealthy could receive a nasty shock next April, USA Today reports: More than 15 million taxpayers could unexpectedly owe taxes when they file their federal returns next spring because the government was too generous with their new Making Work Pay tax credit.
Taxpayers are at risk if they have more than one job, are married and both spouses work, or receive Social Security benefits while also earning taxable wages, according to a report from the Treasury Department's inspector general for tax administration.
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