Canadians' tax bill bigger than all necessities combined

Taxes are eating into Canadians' incomes more than ever, costing the average family more than food, clothing and housing combined, according to the Fraser Institute's 2007 Canadian Consumer Tax Index.

Consider:

The average Canadian family earned $63,001 in 2006 and paid taxes equalling $28,311, almost 45 per cent of its income, while spending 35.6 per cent of its income on food, clothing and housing.

According to the institute, 45 years ago that same family earned $5,000 and paid $1,675, or 33.5 per cent of its total income, in taxes and spent 56.5 per cent of its income on the necessities of life.

Further:

Since 1961, the total tax bill for the average Canadian family has increased 1,590 per cent, according to the think-tank.

Meanwhile, the cost of housing has increased 1,019 per cent, the cost of food 487 per cent and the cost of clothing 447 per cent.

The tax index adds up the various taxes paid to federal, provincial, and local governments, including direct taxes such as income taxes, sales taxes, Employment Insurance and Canadian Pension Plan contributions, and "hidden" taxes such as import duties, excise taxes on tobacco and alcohol, amusement taxes, and gas taxes.

Source: Canadians' tax bill bigger than all necessities combined, Financial Post, April 17, 2007; based upon: Milagros Palacios and Niels Veldhuis, The Canadian Consumer Tax Index, 2007, Fraser Institute, April 2007.

For text: http://www.canada.com/nationalpost/financialpost/story.html?id=a7595e13-2e1a-408e-96ba-bdb5a295845f&k=88411

For report: http://www.fraserinstitute.ca/admin/books/files/CCTI.pdf

For more on International Issues:

FMF Policy Bulletin/ 24 April 2007

Publish date: 04 May 2007
Views: 279

Taxation, News

The views expressed in the article are the author’s and are not necessarily shared by the members of the Foundation. This article may be republished without prior consent but with acknowledgement to the author.

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