NCPA - National Center for Policy Analysis

July 1st Is Canadians' Tax Freedom Day

July 1, 1999

On July 1 Canadians celebrate Canada Day, the anniversary of Canada's confederation. This year it is also the date they celebrate Tax Freedom Day, the day the average family has worked long enough to pay its total tax bill.

Starting July 1 Canadians will be working for themselves rather than the government, says the Fraser Institute, which has researched the comprehensive tax burden for the average family in Canada and each of the provinces since 1977.

  • This represents a four-day improvement over 1998 when Tax Freedom Day fell on July 5, and one day later than in 1997.
  • Even though this year's date for Tax Freedom Day indicates an improvement, it is still 59 days later than it was in 1961, the earliest year for which this calculation has been made; then Canadian Tax Freedom Day was May 3, and by 1974 the date had advanced to June 8.
  • Research also shows that the top 30 percent of income earners pay 64.2 percent of all taxes and earn 56.4 percent of all income; the bottom 30 percent of all income earners pay 4.9 percent of all taxes, while earning 10 percent of all income.

In 1999, researchers project the average family will pay C$30,585 on an income of C$61,825. Last year, according to revised estimates, an average family paid C$30,510 in taxes on an income of C$60,512. Rising incomes and tax cuts by the federal government and some provinces are responsible for the advancing date, say researchers.

Source: "Canadians Celebrate Canada Day and Tax Freedom Day on July 1," News Release, June 29, 1999, Fraser Institute, 4th Floor, 1770 Burrard Street, Vancouver, BC V6J 3G7, Canada, (604) 688-0221.


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