Trump incorrectly says Canadians would pay 'much lower taxes' as Americans Trump has made it clear that he thinks Canada, a NATO member that shares a 5,500-mile border with the United States, should give up its sovereignty and become the 51st state. One of his main arguments is that it makes financial sense. Not only would he not impose tariffs — which he wrongly claims are paid by Canadians when in fact they are largely paid by American importers and consumers — but he and his press secretary argue that Canadians would face "much lower taxes" if they joined the United States. When we checked with the White House, an official said Trump was talking about the marginal tax rates — essentially the tax imposed on each additional dollar of income. Both the U.S. and Canadian systems are progressive, meaning tax rates get higher as a person's income increases. Canada starts at 15 percent, and the U.S. starts at 10 percent — but the top American rate is 37 percent, compared with 33 percent for Canadians. It's very difficult to compare the tax systems of different nations on an apples-to-apples basis. But a report released annually by the Organization for Economic Cooperation and Development indicates both the United States and Canada have relatively low tax rates in the OECD and there's not much difference between the two countries. To read the full report and find out the Pinocchio rating, please click the link. | 
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