Cost of Tax Outstrips Cost of Food, Housing, Clothes
August 13, 2014 Taxation in Canada
VANCOUVER – The growth in tax obligations in Canada has outstripped the growth in the cost of other expenses over the last 50 years.
Canadian taxpayers pay more in taxes each year then they spend on food, clothing, and housing combined, according to new information in a report released on August 12th by the Canadian think tank the Fraser Institute.
The results of the new research shows that currently the average Canadian family spends 42 percent of its annual income on taxes, while at the same time only 36 percent would be spent on basic necessities.
The tax obligations faced by Canadian taxpayers have increased significantly in size over the last 50 years, as in 1961 an average Canadian family would have spent only 34 percent of its income on taxes, with 57 percent going to basic necessities.
The experts of the Fraser Institute also found that over the years between 1961 and 2013 the tax expense faced by the average family rose by 1 832 percent, while the cost of housing, clothing and food rose by 1 375 percent, 620 percent, and 546 percent respectively.
In the report the Fraser Institute also concluded that if the federal and provincial governments of Canada did not operate with budgetary deficits and used tax hikes to cover all expenditures, the the increase of tax obligations since 1961 would have been as high as 1 975 percent.
Photo By: Polycart