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Scandinavia vs- Canada –
Social and Economic Policies
By: Paul Young, CPA, CGA
Disclaimer
• This presentation is one opinion on differences between Canada and
Scandinavia
Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg
Agenda
• GDP
• Corporate Tax
• VAT
• Personal Tax
• Payroll Tax
• Standard of Living
• Comments
GDP by Industry (express in %)
Tax Burden / Corporate
Canada NorwayDenmark
``
VAT Taxation
• Canada VAT 5% (Federal) – (Provincial Rate 8% to 10%)
• Denmark – 25%
• Sweden – 25%
• Finland- 24%
• Norway – 25%
Personal Income Tax Rates
• Canada 29% (39-50 combined Provincial/Federal Rates)
• Denmark – 55.41%
• Sweden – 57.00%
• Norway – 47.2%
• Finland – 52.35%
Payroll Taxes
• Canada – 7.58%
• Denmark – Lump sum – no rate
• Sweden – 31.42%
• Norway – 14.1%
• Finland- 23.23%
Per capita income
Cost of living
Canada is
Rank 30th
Best Countries
Comments
• Canada is joined at the hip with the USA as such has to be competitive with United States on costs. Payroll taxes are costs for
business as such they have kept in check
• Canada’s economy is driven by commodities, like oil, natural gas, precious metals, agriculture, etc. as such has to depend on
exports. Exports account for 1/3 of GDP and are growing at 4% clip each year
• Scandinavia countries are very expensive for business: http://www.smh.com.au/business/the-economy/australia-the-most-
expensive-country-in-the-g20-20140512-3846v.html. Some Swedish companies are re-looking at their investment due to the
high cost: http://www.bcg.com/media/pressreleasedetails.aspx?id=tcm:12-141488
• Canada competitiveness as slipped, but some of that slipped has to do with bad polices at the provincial level:
http://www.conferenceboard.ca/press/newsrelease/13-09-
04/canada_ranks_14th_in_global_competitiveness_for_the_second_consecutive_year.aspx. Ontario has drove business out
with more regulations as well as high power costs!
• Canada commitment to social programs: http://www.oecd-ilibrary.org/social-issues-migration-health/government-social-
spending_20743904-table1. You will notice that Harper’s government continue put money into social programs.
• Harper has increase the transfers for education as such money has flown to post-secondary education by the provinces:
http://www.stlawrencecollege.ca/news/2014/oecd-report/
• Education - http://www.independent.co.uk/news/world/europe/finland-schools-subjects-are-out-and-topics-are-in-as-country-
reforms-its-education-system-10123911.html
• http://sustainability.thomsonreuters.com/2014/05/11/end-oil-boom-threatens-norways-welfare-model/. Norway has AG sector,
but little else as compare to Canada that has MFG, food processing, lumber, fishing, etc.
• Norway debt to GDP http://www.tradingeconomics.com/norway/government-debt-to-gdp is at 29
• Argument against Norway - http://www.sovereignman.com/expat/why-norway-is-a-bs-argument-for-higher-taxes-8235/

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Scandinavia vs. canada Analysis of Social and Economic Policies

  • 1. Scandinavia vs- Canada – Social and Economic Policies By: Paul Young, CPA, CGA
  • 2. Disclaimer • This presentation is one opinion on differences between Canada and Scandinavia
  • 3. Paul Young - Presenter Bio • CPA/CGA • 25 years of experience in Academia, Industry and Financial solutions • Youtube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg
  • 4. Agenda • GDP • Corporate Tax • VAT • Personal Tax • Payroll Tax • Standard of Living • Comments
  • 5. GDP by Industry (express in %)
  • 6. Tax Burden / Corporate Canada NorwayDenmark ``
  • 7. VAT Taxation • Canada VAT 5% (Federal) – (Provincial Rate 8% to 10%) • Denmark – 25% • Sweden – 25% • Finland- 24% • Norway – 25%
  • 8. Personal Income Tax Rates • Canada 29% (39-50 combined Provincial/Federal Rates) • Denmark – 55.41% • Sweden – 57.00% • Norway – 47.2% • Finland – 52.35%
  • 9. Payroll Taxes • Canada – 7.58% • Denmark – Lump sum – no rate • Sweden – 31.42% • Norway – 14.1% • Finland- 23.23%
  • 11. Cost of living Canada is Rank 30th
  • 13. Comments • Canada is joined at the hip with the USA as such has to be competitive with United States on costs. Payroll taxes are costs for business as such they have kept in check • Canada’s economy is driven by commodities, like oil, natural gas, precious metals, agriculture, etc. as such has to depend on exports. Exports account for 1/3 of GDP and are growing at 4% clip each year • Scandinavia countries are very expensive for business: http://www.smh.com.au/business/the-economy/australia-the-most- expensive-country-in-the-g20-20140512-3846v.html. Some Swedish companies are re-looking at their investment due to the high cost: http://www.bcg.com/media/pressreleasedetails.aspx?id=tcm:12-141488 • Canada competitiveness as slipped, but some of that slipped has to do with bad polices at the provincial level: http://www.conferenceboard.ca/press/newsrelease/13-09- 04/canada_ranks_14th_in_global_competitiveness_for_the_second_consecutive_year.aspx. Ontario has drove business out with more regulations as well as high power costs! • Canada commitment to social programs: http://www.oecd-ilibrary.org/social-issues-migration-health/government-social- spending_20743904-table1. You will notice that Harper’s government continue put money into social programs. • Harper has increase the transfers for education as such money has flown to post-secondary education by the provinces: http://www.stlawrencecollege.ca/news/2014/oecd-report/ • Education - http://www.independent.co.uk/news/world/europe/finland-schools-subjects-are-out-and-topics-are-in-as-country- reforms-its-education-system-10123911.html • http://sustainability.thomsonreuters.com/2014/05/11/end-oil-boom-threatens-norways-welfare-model/. Norway has AG sector, but little else as compare to Canada that has MFG, food processing, lumber, fishing, etc. • Norway debt to GDP http://www.tradingeconomics.com/norway/government-debt-to-gdp is at 29 • Argument against Norway - http://www.sovereignman.com/expat/why-norway-is-a-bs-argument-for-higher-taxes-8235/

Editor's Notes

  1. https://www.cia.gov/library/publications/the-world-factbook/fields/2012.html
  2. http://www.itrworldtax.com/Jurisdiction/32/Canada.html
  3. http://www.thehstblog.com/2015/12/articles/gst-general-1/canadian-sales-tax-rates-as-at-january-1-2016/ http://www.vatlive.com/vat-rates/european-vat-rates/eu-vat-rates/ http://www.vatlive.com/global-vat-gst/norway/norway-vat-compliance-and-rates/
  4. https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html
  5. 1. https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/social-security-employer-tax-rates-table.html
  6. http://databank.worldbank.org/data/download/GNIPC.pdf
  7. http://www.insidermonkey.com/blog/10-countries-with-the-highest-cost-of-living-in-the-world-362232/ http://www.numbeo.com/cost-of-living/rankings_by_country.jsp
  8. http://www.usnews.com/news/best-countries/articles/methodology