Brain Drain
The Canadian economy is now being faced with a new struggle more so then ever called a brain drain. If your not familiar with the term "brain drain" it is referred to as the emigration of highly qualified graduates from a post secondary institution primarily to the United States of America. This brain drain is mostly caused due to higher wages, lower taxes and greater job opportunities. But not only graduates are crossing the border, they are being joined with business owners and even corporate Canada. They are being discouraged by high taxation are taking their money, jobs and business elsewhere. With our weak Canadian dollar being nearly half the value of the American dollar there really isn't much incentive to stay in Canada. Some people might think that the brain drain is nonsense. That in the global economy workers are on the move coming in and out of not only Canada but also every other country, that it is just a way of life. Consider this, in the 1990's Canada gained four university students for every one it lost to the United States. This seems more beneficial to our economy however, the Canadians that moved to the United States were two times more likely to hold a univer
There is no one clear-cut answer to this problem, it can only be solved by taking many steps to encourage our brilliant individuals not to emigrate. A start to ending this problem lies primarily in the government's hands and reforming our tax system. Some critics believe that hard work and innovation are not significantly rewarded in Canada. Canada has a top marginal tax rate of 50% for income above $63,000 (approximately); there is little incentive to work beyond this point. In the U.S. the highest tax rate is imposed at around $425,000 dollars Canadian. Comparing these number the U.S clearly rewards risk-taking more so then Canada. In regards to helping post-secondary institutions retain their faculty the Canadian government could assist in fund raising with alumni by making the tax treatment of donations more similar to how it occurs in the U.S (Brain Drain, Dilworth) There is no doubt that opportunity is a common attraction that pulls Canadians south. Opportunity to researchers means more funding. The reasons cited by many major Canadian Universities was more resources, reduced teaching load and a bigger critical mass of research collaborators (Brain Drain, Dilworth). Another large incentive in working across the border is the increase in pay not only due to the weak Canadian dollar but simply more money on average given. For example an intermediate-level software developer that has three to five years exper
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Approximate Word count = 967
Approximate Pages = 4 (250 words per page double spaced)
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