why would the High canadian dollor affect american vistors to canada tell me 2 travel barriers plz??
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I just drove back from his Canadian campus and can tell you that his is how I work it in my head:
When there, the exchange rate was in our favor by 5%. I pay 5% in state taxes for goods and some services. The province I was traveling in has a 14% combined (government / provincial) tax for goods and some services. Therefore, I was paying an extra 9% just to make purchases in Canada (14% Canadian taxes minus the 5% exchange rate).
Gas is another major expense. I was paying $1.09 for an imperial gallon, which was much greater than what I’m used to paying for a U.S. gallon of gas in my state. If you consider that about 5 years ago the exchange rate was 40% in our favor, then now is not the ideal time to travel to Canada “for the heck of it.”
That said, in my specific case, my son is getting a high quality international education at a very reasonable cost, despite the exchange rate nearly flat-lining. So, it’s financially sounds for me (and him) to travel back and forth for the remainder of his acaemic career. So, I guess everything is relative, eh?
But, I regress. The bottom line? I would consider the two major barries as the inequity between our two country’s tax structures and gas prices, thus the dramatic drop in the exchange rate can’t make up for the extras you pay to travel across the border.
Below is the website I check every day to check on the exchange rate. I hope this help.
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