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Message: <blockquote data-quote="Thorfinnsson" data-source="post: 78598" data-attributes="member: 2291">Canada has much lower taxes on personal income relative to Western Europe owing to a far smaller welfare state.  Government spending as a share of the economy is roughly one-third in Canada, whereas in most of Western Europe it's roughly around half.  Canada, the USA, and Australia are low tax countries compared to you guys.Like Germany and America, Canada is a federal state.  Many government functions are handled by the provinces.  For instance, the provision of healthcare is a provincial responsibility in Canada.  The provincial rate goes to the provincial government, and yes you need to pay both the province and the federal government.  Fortunately Alberta has quite low taxes owing to their massive oil wealth.</blockquote>