Canadian Families Pay Too Much Tax
By 250 News
The total tax bill of the average Canadian family has increased by more than 1,700 % cent since 1961, according to a new book, Tax Facts 15, released by the Fraser Institute.Canadians’ total tax bill now accounts for more of the family budget than food, clothing and shelter combined. In contrast to the jump in taxes, the average family’s expenditures on shelter increased by 1,063 %, food by 505 % cent and clothing by 455 %. “Taxes have crept into virtually every aspect of Canadians’ daily lives,” said Niels Veldhuis, co-author of Tax Facts 15 and director of fiscal studies at the Fraser Institute. “As a result, the average Canadian family’s biggest total expense is taxation. Families are paying more in taxes than they spend on food, clothing, and shelter.”Tax Facts 15 provides a wide-ranging overview of Canada’s tax system and the amount of taxes Canadians pay including direct taxes such as income taxes, Employment Insurance and Canadian Pension Plan contributions, and indirect or “hidden” taxes such as sales taxes, excise taxes on tobacco and alcohol, amusement taxes, and gas taxes.
In 2007, the average Canadian family earned $66,496 and paid $30,213 in total taxes. On a percentage basis, the average Canadian family gave 45.4 % of its income to governments in the form of taxes.
Back in 1961, the average family earned $5,000 and paid just $1,675 in taxes. That works out to 33.5 per cent of its income spent on taxes while 56.5 per cent was spent on food, clothing and shelter.
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