Canadians Face 1700 Percent Tax Increase in Last 50 Years
April 27, 2012 Taxation in Canada
CALGARY – The total tax burden faced by Canadian families has risen by over 1 700 percent since 1961, and they now pay more in taxes than for housing, food or clothing.
Earlier this week, on April 26th, the Canadian non-government organization the Fraser Institute released the latest edition of its annual Canadian Consumer Tax Index report, which is described by the Institute as “…the most comprehensive and easily understood indicator of the overall tax bill of the average Canadian family.”
According to the Institute, the latest study has shown that “…taxes from all levels of government make up the single largest expenditure facing Canadian families,” and the study has indicated that tax payments have been the fastest growing expense for Canadian families over the last 50 years.
The results of the study show that the average family in Canada has an annual income of CAD 74 233, with approximately CAD 30 792, or 41.5 percent, of the income going out to the Canadian federal and local budgets as taxes. In comparison, in 1961 the average combined salary for a family in Canada was CAD 5 000, with 33.5 percent, or CAD 1 675, being paid as taxation.
The study also noted that the average family in Canada now spends more of their annual income on paying taxes than it does on purchasing necessities for life, with only 33.6 percent of all income going towards the payment of housing, food and clothing.
The total tax burden faced by Canadian families has increased by 1 738 percent since 1961, while the annual expenditure on housing, food and clothing has risen by 1 185 percent, 518 percent and 500 percent respectively.
The Fraser Institute noted that the federal government of Canada and many of the provincial governments are currently seeing a budget deficit, and “… these deficits are essentially deferred taxes into the future since the shortfalls must ultimately be repaid by working Canadians.”
Photo by hto2008