Today is Tax Freedom Day In B.C.
By 250 News
Prince George, B.C.- Today is tax freedom day in B.C.. According to the Fraser Institute, today is the day that if required to pay all of your taxes up front, you would have to pay each and every dollar you earned to governments prior to Tax Freedom Day.
Tax Freedom day is three days later than it was last year however, it would arrive much later if governments had to cover current expenditures with current taxation instead of deferring the tax burden by running deficits.
“The significant deficits racked up by the federal and provincial governments as they attempted to stimulate the economy must one day be paid for by taxes and should therefore be considered as deferred taxation,” said Niels Veldhuis, Fraser Institute senior economist and co-author of the report, Canadians Celebrate Tax Freedom Day on June 5, 2010.
“If Canadian governments had increased taxes to balance their budgets rather than run deficits, Tax Freedom Day would fall 25 days later in 2010, on June 30.”
Fifteen of the 25 additional days are due to the federal deficit and the remainder to the provincial deficits.
The reason Tax Freedom Day falls on June 5 in 2010, three days later than 2009, is primarily the result of Canada’s improving economy as the country emerged from recession.
When the economy recovers and incomes increase, a family’s tax burden tends to increase to a greater extent. That is mainly because household consumption increases, which results in an increase in the amount of sales and other consumption taxes paid by Canadian families.
However, Veldhuis points out that several provinces also increased taxes in 2010 which contributed to the later Tax Freedom Day.
For example, British Columbia increased its health tax (Medical Services Plan premiums); Quebec increased several taxes (such as gas and mining taxes) and introduced a new health tax in 2010; Saskatchewan increased tobacco and alcohol taxes; Manitoba increased tobacco taxes; and Nova Scotia increased income taxes and its sales tax rate.
In 2010, the average Canadian family (with two or more individuals) will earn $92,754 (which includes not just wages and salaries, but interest, dividends, private and government pension payments, old age pension payments, and other transfers from governments) and pay a total of $39,141 in taxes, for a total tax bill amounting to 42.2 per cent of its income.
Tax Freedom Day varies from province to province, depending on the taxation levels of provincial and local governments. Alberta continues to enjoy the earliest Tax Freedom Day on May 19, followed by New Brunswick and Prince Edward Island on May 26, then Manitoba on May 30. Next comes Ontario (May 31), Nova Scotia (June 4), British Columbia (June 5), and Quebec on June 7. Newfoundland and Labrador has the second-latest Tax Freedom Day, June 12, surpassed only by Saskatchewan, where Tax Freedom Day falls on June 16.
You can calculate your personal Tax Freedom Day using the Fraser Institute’s Personal Tax Freedom Day Calculator at www.fraserinstitute.org
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Is that an oxymoron?