Tax Freedom Day Falls in Canada
June 11, 2013 Taxation in Canada
VANCOUVER – Rising tax rates in Canada have pushed back Tax Freedom Day by two days this year.
The Tax Freedom Day in Canada fell on June 10th this year, 160 days from the start of the year, and two days later than in the previous year, according to a statement released on the same day by the independent think-tank Fraser Institute.
Tax Freedom Day is a hypothetical measure of how many days it takes an average taxpayer to earn enough income to fully cover the entirety of their annual tax bill.
Explaining why the Tax Freedom Day fell later this year, the associate director of tax and budget policy of the Fraser Institute Charles Lammam said that the delay was due to several tax hikes across the country including ”… BC’s [British Columbia] corporate income tax and top personal tax rate as well as its Medical Services Plan premiums; a new top income tax bracket in Quebec; increases to Manitoba’s Provincial Sales Tax and financial corporate capital tax; increases to New Brunswick’s corporate income tax and all four personal income tax rates; increased taxes on small businesses in PEI; cancellation of a corporate tax decrease in Saskatchewan; and increased Employment Insurance premiums federally. “
The calculation of Tax Freedom Day does not account for the budget deficits which are expected to be seen by the government this year, and it is estimated that the date would fall on June 19th if the government’s spending levels were taken into account.
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