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> You accounting for taxes? Yes, taxes are very comparable in California and New York on this income level. 400,000 CAD in Ontario is taxed at a net effective
by arcticbull 5y ago
> You accounting for taxes?
Yes, taxes are very comparable in California and New York on this income level. 400,000 CAD in Ontario is taxed at a net effective 44.8%. In BC 43.8%
In California you'd be taxed at an effective 42%. In New York you'd be taxed at an effective 43.2%. And after the Biden tax hikes go into effect this starts to look a lot worse.
Not to mention the Canadian tax bill includes healthcare whereas the US salary is reduced by $12,000 a year to account for it.
> HST? Gasoline? The general higher cost of anything imported?
You're making $400K a year and you think that a $55 average monthly gas bill is going to make a difference?
Yes this is all factored into the PPP adjustment. [1]
> How about the recent run up in housing costs?
It happened in both countries.
> Having worked in both countries, $300k USD goes way further in the US than $300k CAD in Canada.
I suspect this isn't true.
Now you can cherry-pick non-tech cities in the US, but I can do that with Canada too, and of course, the vast majority of tech folks have historically chosen to live in NY and CA for a reason. Will that hold? Who knows!
[1] https://www.oecd.org/sdd/prices-ppp/purchasingpowerparities-frequentlyaskedquestionsfaqs.htm https://www.oecd.org/sdd/prices-ppp/purchasingpowerparities-...
- 908B64B197 5y agoThere's also currency (one USD will always be worth one USD!) and capital gain tax (on your RSU).
- arcticbull 5y ago1CAD will also always be 1CAD. People who live in Canada are paid in CAD, people who live in America are paid in USD. The currency and PPP conversions smoothed out those differences for comparison purposes. I selected a mid-band senior Shopify role in Toronto denominated in CAD as the comparison and ran the appropriate adjustments. In the US, RSU vesting is considered ordinary income and taxed accordingly, this was considered and included. [edit] I believe in Canada, RSU vesting is also ordinary income, but if not then treating them as a capital gain will substantially reduce the tax burden for Canadians.
- 908B64B197 5y ago> 1CAD will also always be 1CAD. People who live in Canada are paid in CAD, people who live in America are paid in USD. One of them is a stable reserve currency. Goods are priced in USD then the exchange rate is used to get the final price in other currencies.
- arcticbull 5y agoExchange rates really don't matter much for most people. Most people buy goods at home. Relative strength and weakness of a particular currency against another just indicates whether imports are more economical or whether manufacturing at home + exporting are more economical. This change over time is reflected in both exchange rates and accounted for in PPP adjustment. It may fluctuate over time, but I don't think that's a huge deal when deciding which country you plan to work in.
- arcticbull 5y agoActually, one other important note: 1USD isn't really always 1USD in the sense that imports become relatively more or less expensive for Americans in America. Reserve status doesn't really correlate too much. Check out DXY. You'll see that as compared to a basket of other world currencies the USD has ranged substantially, from 0.76 in 2012 to as high as 1.02 in 2016. [1] Being the reserve currency more often than not means that its a unit of account. [1] https://www.investing.com/currencies/us-dollar-index https://www.investing.com/currencies/us-dollar-index