Pure BULL! Canada would kill for your tax breaks!
Lets not forget the 0% capital gains tax in the U.S( Canada has 50% cgt)
Starting next year, the child-care credit gets bigger, too, increasing the maximum amount of eligible employment-related expenses from $2,400 to $3,000 for one child and from $4,800 to $6,000 for two or more.
Education
Those nifty child credits disappear when kids turn 18 and start demanding cars, prom clothes and college educations. But a host of improved tuition tax breaks will ease that burden.
Starting with 2002, annual contribution limits on education IRAs will rise from $500 to $2,000, and married couples will be able to have as much as $220,000 of modified adjusted gross income and still take tax breaks for these accounts. Use the proceeds to pay for college, and you'll never have to pay income tax on the money earned within the account. Moreover, in a move that voucher-vending Republicans love and most public-school-preferring Democrats hate, the bill would allow families to use those funds for private elementary and high school tuition as well as college costs.
Also beginning in 2002, taxpayers can deduct more in higher education costs, and they can deduct them even if they don't otherwise itemize their deductions. The new maximums are as follows: In 2002 and 2003, taxpayers with adjusted gross income that does not exceed $65,000 ($130,000 for married couples filing joint returns) are entitled to a maximum deduction of $3,000 per year, and taxpayers with higher incomes would not get any deduction. In 2004 and 2005, taxpayers with adjusted gross income that does not exceed $65,000 ($130,000 for married taxpayers filing joint returns) are entitled to a maximum deduction of $4,000 and taxpayers with adjusted gross income that does not exceed $80,000 ($160,000 in the case of married taxpayers filing joint returns) are entitled to a maximum deduction of $2,000.
Perhaps one of the best educational goodies in the bill is a determination that earnings of pre-paid tuition plans (including the popular "529 plans") are tax-free forever, and don't, as is currently the case, become taxable at the worst possible time: just when the student needs the money for college. Finally, the bill extends tax deductions for interest on student loans to higher income taxpayers. |
