The average tax rate in Canada is higher than in the United States. In 2003, Canada's tax burden equals about 33.8% of GDP placing it in the middle of the G7 countries, with Japan lowest at 25.3% and France highest at 43.4%.<ref>[http://www.fin.gc.ca/activty/faq1e.html#Taxation Department of Finance Canada: FAQs]</ref> The US rate is roughly 25.6%; this discrepancy is consistent with the differing levels of social services which the governments funds. Canada also had managed to run without a budget deficit for a number of years under the last Liberal government. | The average tax rate in Canada is higher than in the United States. In 2003, Canada's tax burden equals about 33.8% of GDP placing it in the middle of the G7 countries, with Japan lowest at 25.3% and France highest at 43.4%.<ref>[http://www.fin.gc.ca/activty/faq1e.html#Taxation Department of Finance Canada: FAQs]</ref> The US rate is roughly 25.6%; this discrepancy is consistent with the differing levels of social services which the governments funds. Canada also had managed to run without a budget deficit for a number of years under the last Liberal government. |