With the Dow just a couple of good days away from hitting 11,000, David Rosenberg’s message is as harsh as ever.
CLASS WARFARE COMING YOUR WAY
We have to admit that we cannot recall a time when the potential returns in
Canada looked so attractive compared to the U.S. 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) — like a
medical payroll tax on high-income earners (a $50 billion drag on purchasing
power for this group) not to mention the $460 billion confiscation being planned
as part of a new 5.4 percentage point surtax (high-income earners in Ontario will
recall those from the early 1990s). No wonder immigration into Canada is running
at a 4% annual rate and foreign applications at Canadian universities surging at a
7% annual rate at this time — the reverse brain-drain is in.
The state governments are already moving in to tap the “rich” as a source of
revenue mimicking the 10.55% surtax that California levels on anyone making
over a million bucks. Hawaii has enacted an 11% top rate on those earning over
$250,000. New Jersey has brought in a 10.75% rate on those making over $1
million too. As state after state follows suit, we’ve got news for you — Canada is
looking more and more attractive each passing day. See States Grab ‘Millionaire’s
Tax’ on page B2 of the weekend WSJ.
Also have a look at today’s USA Today at the growing trend of Americans seeking
their fortunes elsewhere — this is new! 50-four per cent of executives said they
would be likely, or highly likely, to accept a foreign post, according to a survey of
114 executives by talent management company Korn/Ferry. Just 37% of those
surveyed in 2005 said they’d go abroad. At MIT’s Sloan School of Management,
24% of 2009 graduates got jobs overseas, up from 19% last year.
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