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Axios
14-03-2025
- Business
- Axios
The Trump migration is prompting the wealthy to move
Trumpism is causing Americans to start moving out of red states and even America itself. Why it matters: The wealthy tend to have the greatest ability to move, which means that such outmigration can have a disproportionate effect on state and local taxes. The big picture: The pandemic caused a generational change in the ability and willingness of many high-income professionals to move. Having done it once, or seen their peers do it, they're more likely to act upon similar impulses this time around. Some folks are moving in response to Donald Trump's election. Others are fleeing red states with abortion bans. (More on that below.) Flashback: From 2020 to 2021, large U.S. urban areas lost more than $68 billion in taxable income, per the Economic Innovation Group, with Manhattan alone accounting for more than $16 billion of that sum. That $16 billion in taxable income was spread across 37,000 returns, which means the average departing Manhattan household had taxable income of more than $425,000. Where it stands: " A lot of the movement that we're now seeing of Americans moving to the U.K. would be people who who don't want to live in Trump's America," says David Lesperance, a lawyer who deals with ultra high net worth families. London in particular is attractive because of its language, schools, cultural institutions, and general safety, he says. Anecdotally, there has been a spike not only in Americans applying for U.K. passports — which they can only do if they've already lived in the U.K. for at least five years — but also in Americans buying houses in the U.K. and newly applying for leave to stay, which is what they do if they want to move to the U.K. from the U.S. Knight Frank, a U.K. real estate consultancy, told a U.K. industry trade publication that "many super-rich Americans are buying up London properties to escape Trump." Zoom in: Lesperance was retained by seven families in just nine days after Trump signed his executive order targeting trans youth receiving gender-affirming care. "People who feel in danger tend to seek me out," he says. That includes families who want to ensure uninterrupted medical care for their children. Zoom out: The desire to move is much stronger than it was in 2017, according to Lesperance, who says he has seen a ninefold increase in interest compared to the first Trump administration. Not only did the pandemic radically change perceptions of how difficult it is to do so, it also created a whole new market in "digital nomad" visas and other ways for people to live and work abroad. The fear of how far Trump is willing to go has also risen significantly since January 6, 2021, and since the spate of executive orders he has signed so far this term. Head north: The U.K. immigration system works faster than Canada's, where there's something of a backlog. Nevertheless, Vance Langford, a president of the Canadian Immigration Lawyers Association, told the Financial Post that he now gets about five calls a week from Americans looking to move their businesses to Canada, up from roughly one per week. Between the lines: Many Americans who fear being targeted by Trump are urgently seeking other passports, Lesperance says. While it's extraordinarily difficult for the U.S. government to strip an American of citizenship, it's very easy for the Secretary of State to cancel a passport. Without a valid passport, it's effectively impossible for an American to leave the country or to obtain a foreign work permit or residence. The bottom line: The very rich are used to taking precautionary measures. Nowadays, those measures increasingly involve foreign residence or even citizenship.
Yahoo
11-03-2025
- Business
- Yahoo
Trump is proposing a US$5 million ‘Gold Card' citizenship program. Could a similar plan work for Canada?
United States President Donald Trump's plan to attract foreign investors by selling Gold Cards for US$5 million is light on details, but the program is expected to let rich foreigners get a residency permit and an easier route to becoming a U.S. citizen. The Trump administration hopes the money raised by the program can help pay down the country's US$35-trillion debt and also boost investments. 'The people that can pay US$5 million, they're going to create jobs,' Trump said at a press conference in late February. 'They're going to spend a lot of money on jobs. They're going to have to pay taxes on that too. I happen to think it's going to sell like crazy.' Canada ran a federal investor immigration program, which was a lot cheaper than Trump's Gold Card proposal, for many years before it was cancelled in 2014. With Trump's announcement last month, some Canadian immigration lawyers feel that Ottawa may be missing out on a similar opportunity. Here's how the Gold Card could work and whether Canada could follow suit. Trump has said his administration will allow foreigners to live in the U.S. and provide them with a route to citizenship if they buy a Gold Card for US$5 billion. 'They'll be spending a lot of money and paying a lot of taxes and employing a lot of people, and we think it's going to be extremely successful,' he said at a press conference last month. The timeline and conditions to apply for a Gold Card aren't clear yet, but it is expected to replace an existing program that already provides residency permits to rich foreign investors in the U.S. Under the EB-5 program, a person can become a permanent resident in the U.S. if they spend about US$800,000 to a bit more than US$1 million — depending on the category — on a commercial enterprise and create at least 10 permanent full-time jobs for American workers. U.S. Commerce Secretary Howard Lutnick said projects under this program didn't 'really work out' due to a lack of oversight. They were 'poorly overseen, poorly executed,' he said at a press conference in February, adding that he expects the Gold Card to be better than the existing program. Lutnick said there are currently about 250,000 applicants in line for the EB-5 and that the U.S. could earn around US$1 trillion if at least 200,000 members of this group take up the upcoming Gold Card offer. This can help 'pay down our debt and that's why the president is doing this,' he said. Trump went a step further at the same press conference and said it was possible to sell up to 10 million of these cards, so the U.S. could earn US$50 trillion and completely pay off its debt. He also didn't rule out allowing Russian oligarchs to buy the cards: 'I know some Russian oligarchs that are very nice people,' he said when asked about the possibility. Finding millions of potential takers will be easier said than done, immigration lawyers say. 'He is dreaming,' Vance Langford, co-president of the Calgary-based Canadian Immigration Lawyers Association (CILA), said. 'With Trump, you know he'll make a big announcement with very little detail, then find out it won't work and have to backtrack.' He said Trump's proposal is relatively unattractive compared to some of the other investor programs out there. For example, an investor can become a citizen of a European Union country in 18 months for one million euros and then get access to 27 countries and visa-free travel to the U.S. But Stephen Green, a managing partner at Toronto-based Green and Spiegel LLP, doesn't think the proposal is unrealistic. 'If you look around the world now, there are enough 'Plan B' people around the world to fill this quota,' he said. He said he hopes Canada can come up with a similar policy. While US$5 million may seem expensive, some experts say Canada should explore the possibility of starting an immigration program that brings in high-net-worth individuals by charging them somewhere between $1 million and $2 million. 'We could ask for $1.5 to $2 million. We could create an infrastructure fund that could use this money to help Northern communities that need water treatment, hospitals, schools,' Green said. 'Our infrastructure is falling down across the country. We should have a pilot project to bring in maybe 500 families one year and see how it goes.' But immigrant investor programs such as the one Trump announced don't always pan out as expected. Canada had a Federal Immigrant Investor Program for many years before shutting it down in 2014, citing lower economic contribution from those newcomers in the long run compared to skilled immigrants entering the country through other programs. At the federal level, Canada ran an immigrant investor program from 1986 to 2014. Prior to it being shut down, applicants needed to have a net worth of at least $1.6 million and invest $800,000 over five years. However, the program was shut down in 2014 because most immigrant investors were not making a 'long-term positive economic contribution to Canada,' the federal government said in a statement back then. 'Over a 20-year career, an immigrant investor pays about $200,000 less in income taxes than a federal skilled worker and almost $100,000 less in taxes than one live-in caregiver, 'the statement said. Such investors also had the lowest official language ability among any immigrant category, including refugees, according to a survey conducted back then. Some immigration lawyers say that cancelling the program didn't make sense and that several countries across the world still run such programs. Green said the Canada Revenue Agency should have gone after any immigrants who were paying lower-than-expected taxes. Cancelling the whole program and ending the funding benefits shouldn't have been the solution. Authorities seemed to be more concerned about the negative sentiment surrounding people being able to buy their way into Canada, he said, an idea he finds nothing wrong with since the millions of dollars they brought with them helped develop Canada's infrastructure. 'What's the difference between that and bringing in foreign students and charging them $50,000 a year?' he said. Not having an investor immigrant program also means Canada is missing out on entrepreneurs looking to leave the U.S. due to a change in the political environment. Langford said the number of people calling him to move their businesses to Canada from the U.S. has increased by 500 per cent. 'I used to get one call a week, and now I get five,' he said. Langford is currently working with a gay couple in the U.S. to move their businesses to Canada. Since there isn't a straightforward program to do that, he is creating a company for them in Canada and obtaining work permits for them under the country's international mobility program as intracompany transferees. 'This is a valid means to bring foreign talent and investment to Canada, but there should be a dedicated program for investors,' he said. He said Canada could have attracted many more high-net-worth individuals if it had federal and provincial programs specifically to do that. A year after the federal government shut down its immigrant investor program in 2014, it tested a new program that would charge applicants twice as much money. Applicants under this pilot program would have to have a net worth of $10 million and invest $2 million over 15 years. But the pilot program didn't receive much demand and was shut down within the year. Siavash Shekarian, chair of business immigration at CILA, blames the poor response on decision-making. 'Frankly, we were so lazy in providing the necessary oversight and monitoring that is required for a functioning program,' he said. He criticized the government's decision to drastically increase the financial requirements for the pilot program in 2015 overnight, and said that policy was 'made by authorities behind closed doors without any knowledge of what was happening on the ground.' Shekarian said the global market for immigration investor programs is worth $80 billion and countries are taking advantage of this. As an example, the United Arab Emirates issued 250,000 golden visas in 2023. Canada doesn't have an investor immigration program at the federal level, but it does have one in Quebec, which is allowed to follow its own immigration policies. But even that program is stalled and 'practically unworkable' because of the high language requirements, he said. Opinion: Rising immigration increased labour shortages Opinion: Immigration U-turn will bring net benefits How Trump could turbocharge the brain drain from Canada With Trump launching his Gold Card policy, Shekarian and other immigration lawyers believe now is the right time for Canada to launch something similar. But there is one very important condition: 'You gotta do it right. If you do it the way it has been done, you're just creating a disaster,' he said. Immigration, Refugees and Citizenship Canada said in a statement last week that there are no plans at this time to reintroduce a new immigrant investor program. • Email: nkarim@ Sign in to access your portfolio
CBC
25-02-2025
- Health
- CBC
They came to Canada to escape political instability in Iran. Now, Quebec is denying them health coverage
When a metal ladder fell and hit Somayeh Ahmadiseddigh in the head at work earlier this month, she was dizzy, nauseous and had trouble standing up. A colleague drove her to the hospital in Quebec City, but when she arrived, she was told it would cost $1,200 to see a doctor because she did not have a provincial health-care card. Although she had private insurance, the hospital receptionist said she'd have to pay upfront and claim the cost with her insurance company later. "I didn't know if I would get my money back," said Ahmadiseddigh. She and her brother tried a few other hospitals, but got the same response. She returned home not knowing the extent of her injury. "My brother stayed up all night beside my bed in fear that something would happen to me," said Ahmadiseddigh. The following day, she paid $250 to be seen at a walk-in clinic, which diagnosed her with a minor concussion. The whole experience left her feeling angry and vulnerable. WATCH | Iranians decry ineligibility for health coverage: Due to the political instability in Iran, Ahmadiseddigh moved to Quebec City with her daughter, Céline, last year. "I couldn't stay because I didn't want to wear a hijab and there were several occasions that I had an incident with the morality police and I didn't feel safe and my family was worried," said Ahmadiseddigh. She obtained an open work permit, which is valid for three years. But, in Quebec, this group of workers is not eligible for public health insurance coverage, known as RAMQ. "It's discrimination in my opinion," said Ahmadiseddigh. "I think it's not humane." Special measures for Iranian nationals In 2022, an Iranian woman named Mahsa Amini was arrested for failing to properly wear a hijab. She later died in police custody. Protests followed and there was a brutal crackdown by the Iranian regime. In response, the Canadian government made it easier for Iranians to stay in the country if they were already here to study, work or spend time with family. The government also allowed Iranians, like Ahmadiseddigh, who came to Canada on a visitor visa, to apply for an open work permit, which could help them earn permanent residency. This temporary immigration policy was introduced in 2023 and is in place until the end of February 2025. But it is up to each province to determine eligibility criteria for public health and drug insurance plans. "The harmonization between what's done in the province of Quebec and what's done at the federal level in terms of immigration isn't always perfect," said Nicolas Simard-Lafontaine, an immigration lawyer and vice-president of the Canadian Immigration Lawyers Association. Quebec is more accommodating if immigration is driven by economic needs and benefits Quebec businesses, but isn't as eager to have temporary residents it didn't specifically ask for, said Simard-Lafontaine. "Quebec has a tougher stance on immigration," he pointed out. But there are exceptions. When it comes to open work permits, both post-graduate open work permits and the dependents of international students in Quebec are eligible for RAMQ. The province also extended health-care coverage late last year for Ukrainian refugees who also have open work permits, said Simard-Lafontaine. 'Maybe I chose the wrong place to immigrate' A RAMQ spokesperson told CBC the Ukrainian situation is unique. But Sahar Soltani doesn't understand why Iranian nationals are being treated differently.. At the end of 2024, nearly 11,000 Iranians had open work permits in Quebec, according to statistics from Immigration, Refugees and Citizenship Canada (IRCC). Soltani moved to Quebec City with her husband and four-year-old daughter last year. She works and pays taxes in Quebec and takes French classes part time. A few months ago, she qualified for supplemental health coverage through her job at Dollarama, but can't take advantage of it because she has to have RAMQ to access it. Friends who settled in other provinces have not had the same kind of challenges. "I feel like I am falling behind," said Soltani, who is constantly worried about getting sick or seriously injured. She looked into private insurance, but it is too expensive and only intended for emergencies. She and her husband were told to change their work permit to a closed permit or apply for permanent residency, but that is not an easy option for newcomers and it can take years to get permanent residency. The hardship comes at a time when Quebec is re-assessing its immigration policy. Last year, it froze some of the immigration paths for people to become permanent residents. The freeze targeted skilled workers and foreign students. Immigrants say they're forced to 'gamble' on health decisions without medical coverage Premier François Legault, who has long maintained that cultural practices of immigrants, particularly from Muslim countries, pose a threat to Quebec's values, also called on Ottawa to redistribute asylum seekers in the province elsewhere, including people who have already settled here. "Maybe I chose the wrong place to immigrate," said Soltani. After CBC Montreal placed a message on an Iranian chat group, dozens of Iranians reached out to share similar frustrations, including people who have delayed starting a family because of the lack of health support for pregnancy and childbirth. Another man with blood cancer said he'd had coverage under a post-graduate work permit, but it was set to expire, leaving him just an open work permit and no access to RAMQ. He had no idea how he would get the medical follow-up and scans he needs to monitor his condition. Easier to qualify in other provinces In Ontario, temporary residents may qualify for health-care coverage if they have a valid work permit – either open or closed – and work full-time for an Ontario employer for at least six consecutive months. Similar rules apply in British Columbia Although there are a few exceptions, Quebec has long denied coverage to people who have an open work permit, said Y. Y. Chen, an associate professor at the University of Ottawa's faculty of law and expert on the intersection of international migration and health. "This is not a new issue," said Chen. "Prior to this particular community, there were plenty of other communities who experienced the same thing." Chen suspects Quebec may be worried the worker isn't going to stay in the province or work for a company in Quebec. They may also be concerned about so-called medical tourism. Unlike most other work permits, an open work permit does not list the name or location of a specific employer. "It takes a lot of effort to move from one country to another," said Chen. "To think that people are willing to go through all that just to access health care and then they will just move back? I think, at least for a majority of people, that seems unlikely." He empathizes with workers who are not able to access health care and said it can feel quite exclusionary when they are paying into the system. "There's a lack of reciprocity, a lack of equality," said Chen. "If these individuals are eventually going to be part of our community, then why not set them up on good footing, allow them to thrive as opposed to putting them in such a precarious situation that they develop poor health." But Chen said there could be several simple solutions. The interim federal health program (IFHP) provides limited, temporary health-care coverage for refugees and refugee claimants. Due to the unstable situation in Iran, the same benefits could be extended to the Iranians, Chen said. The federal immigration minister also has discretionary authority under this program to provide coverage on a case by case basis, but Chen is unsure how people would apply. In 2009, Citizenship and Immigration Canada sent out an operational bulletin about the lack of health-care coverage for post-graduate work permit holders in Ontario and Quebec. At the time, both provinces required the name and location of a specific employer. Ontario relaxed its rules and required the foreign worker be employed full-time by an employer for a minimum of six months. Quebec also agreed to make RAMQ available to post-graduate work permit holders and asked the federal government to flag it in the remarks section of the work permit. "Perhaps a similar arrangement could be an acceptable solution for the challenges facing Iranian nationals under the temporary program," said Chen. Answers not forthcoming The federal government did not respond to questions about whether the Iranians could be included in the IFHP. "In Canada, provinces and territories manage health care," said IRCC spokesperson Julie Lafortune in an email. "As part of the government's efforts to ensure transparency and provide necessary information, we communicate relevant details to people through client outreach and web updates." RAMQ said the eligibility criteria for health-care coverage is determined by Quebec's Health Ministry. The ministry did not answer CBC's questions about its policy concerning open work permit holders like these Iranian temporary residents. Ahmadiseddigh left Iran because she wanted a better life for her family. She hopes Quebec will reconsider to help make that a reality.
