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The Ottawa Citizen Online Business Page
Wednesday August 18, 1999

Having their cake ...

Kristin Goff
The Ottawa Citizen

Jean Chretien's cavalier response to cries for tax relief drew the wrath of tax-cut proponents. Kristin Goff talked with two Canadians yesterday who have gone to the United States.

Prime Minister Jean Chretien has come under fire from opposition leaders for his so-called "let-them-eat-cake" attitude toward skilled workers who are leaving Canada for the low-tax environment of the United States.

In comments about the "brain drain" controversy, Mr. Chretien said earlier this week that there's nothing to stop Canadians from heading south if they want to, but they'll face higher health-care costs, university tuition for their children that can reach $15,000 to $20,000, and higher crime rates that could easily overshadow the perceived benefits of a lower tax environment.

"If you go live in the United States, you can't go out in the park at night because crime is higher than in Canada," he said, adding that "they have five times more murders with guns than we have in Canada.

"If you look at only one aspect of life (taxes), maybe you would prefer living elsewhere," he said at a Liberal party corn roast in St-Georges-De-Beauce, Que. "There's nothing forcing you to stay here. And there's nothing forcing someone else to stay in the United States, either. That's globalization."

That comment, along with Mr. Chretien's promises to spend more on programs for the poor and to respond to the brain drain by investing more on "innovation and research and development," sparked criticism from opposition parties and business groups, who are pushing for lower income taxes as a tool to keep more of Canada's best and brightest at home.

"It's a kind of let-them-eat-cake attitude typical of Jean Chretien that, if people want to leave, let them," said Jason Kenney, revenue critic for the Reform party.

Some of those who have already left Canada are watching the debate with interest from afar. They, too, are expressing differing opinions about just how sweet "the cake" they are eating really is.

The Citizen talked with two of them yesterday about why they left Canada to work in the United States and how valid are the prime minister's warnings.

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