The main reason why the cost of living is higher is because of the border. On average, Canadian goods and services are higher by about 25% relative to US prices. Here are the worst: financial services (banking, credit card fees), cell phone and cable fees, and food, particularly dairy products. And gasoline, even before the carbon tax.

Why is this? Because the border allows cartels and monopolies to form and be enforced, and keep broader competition from the small Canadian market.

One small example: bicycles and bike parts. At the wholesale level, these are hideously expensive, even compared to US retail. Politically well-connected domestic manufacturers ensure that their small assembly operations are protected from competition by restrictive import duties and tariffs. So to protect a few dozen minimum-wage bike assembly jobs in some junior minister's political riding, Canadians pay much more for their bike stuff.

This gets repeated across the entire economy. Which explains why there are constant long line-ups at the US border crossings south of Vancouver, where Canadians head down to buy gas, milk, cheese, and well basically everything...