Tax Freedom Day Today

By 250 News

 This is it, "Tax Freedom Day" for the average Canadian.

This is the day when  the money you make on the job starts being  yours instead of  being paid to various levels of  government. The Fraser Institute  has released its Tax Freedom Day Report in which it says the provincial tax freedom day for British Columbians  came on the 16th of June,  same as the folks who live in Manitoba.

No surprise that  Alberta has the earliest  Tax Freedom Day , June 1st.

Next comes New Brunswick and P.E.I on the 14th of June,

Then B.C. and Manitoba on the 16th.

Ontario and Nova Scotia fall in next on the 19th,  

Saskatchewan's is on the 22nd,  Quebec is on the 26th and  the latest tax freedom day  is experienced by the people in Newfoundland and Labrador on July 1st.

“If you look at the average Canadian family’s total tax bill, each and every dollar they earn before June 20 would be required to pay the taxes owing to all levels of government. It takes until June 20 before they begin earning money for themselves,” said Niels Veldhuis, The Fraser Institute’s Director of the Centre for Tax Studies.

The taxes used to compute Tax Freedom Day include income taxes, property taxes, sales taxes, profit taxes, health, social security and employment taxes, import duties, license fees, taxes on the consumption of alcohol and tobacco, natural resource fees, fuel taxes, hospital taxes and a host of other levies.

This year Tax Freedom Day falls four days earlier than in 2006. The latest Tax Freedom Day in Canadian history was in 2000, when it fell on June 25. Tax Freedom Day moved forward to June 17 in 2001 before steadily retreating to June 24 in 2005 and 2006.

“Even with the recent improvements, Tax Freedom day still falls almost two months later than in 1961, the earliest year for which we have calculations,” Veldhuis said.

Tax Freedom Day arrives earlier this year in part because of the federal government’s 2006 reduction of the Goods and Services Tax (GST) to six per cent from seven per cent, Veldhuis said. While the sales tax reduction took place in mid-2006, Canadians receive the benefits for an entire year in 2007. Additionally, several provincial governments reduced taxes in 2007.

You can calculate your personal Tax Freedom Day using The Fraser Institute’s Personal Tax Freedom Day Calculator at www.fraserinstitute.ca 

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