The mortgage interest on the American's home is fully tax deductible. No such deduction exists in Canada.
Come to think of it, the only thing I can think of that we don't get taxed on is lottery and casino winnings. (Of course they don't tell you that something like 30% of the lottery ticket's price is tax. Most of the casinos are government owned, so the government rakes in 100% of those profits.)
That's true but I also read an argument that said the tax deduction is a selling point in the US and because of that the price of the US house is more than the same house in Canada.( I really don't know but I do know any good salesman would use it in his pitch and I would think any seller would consider it when pricing the house). Before 1996 Canadian taxes were more than those in the US but since then the trend has been reversing.
Last week I saw a poll that said in 1998 something like 250 doctors had left Canada for the States and the same year 40 had returned from the States. In 2000 something like 200 had left and 150 returned. Another trend reversing.