Taxes in Canada Jump 1,787 Percent
April 24, 2013 Taxation in Canada
VANCOUVER – The taxes paid out by Canadian families are now at the highest level since the 1960s, and tax obligations are currently the biggest expense imposed on households in the country.
Over the last five decades, since 1961, the average tax liabilities faced by a household in Canada has grown by 1 787 percent, according to the results of new research published by the Fraser Institute earlier this week.
In 2012 approximately 42.7 percent of the income of an average family in Canada went towards paying their tax obligations.
Comparatively, an average family will direct approximately 36.9 percent of its income towards covering the cumulative cost of food, housing and clothing.
The growth of the total tax liabilities has also exceeded the growth of the national consumer price index, which has increased by only 675 percent since 1961.
The report pointed out that even though tax liabilities are at an all-time high, federal and provincial governments in Canada are still operating with budget deficits, which indicates that tax obligations will be increased even further in the future in order to repay the current overspending.