CANADIANS' TAX BILL BIGGER THAN ALL NECESSITIES COMBINED
April 17, 2007
Taxes are eating into Canadians' incomes more than ever, costing the average family more than food, clothing and housing combined, according to the Fraser Institute's 2007 Canadian Consumer Tax Index.
- The average Canadian family earned $63,001 in 2006 and paid taxes equaling $28,311, almost 45 percent of its income, while spending 35.6 percent of its income on food, clothing and housing.
- According to the institute, 45 years ago that same family earned $5,000 and paid $1,675, or 33.5 percent of its total income, in taxes and spent 56.5 percent of its income on the necessities of life.
- Since 1961, the total tax bill for the average Canadian family has increased 1,590 percent, according to the think-tank.
- Meanwhile, the cost of housing has increased 1,019 per cent, the cost of food 487 per cent and the cost of clothing 447 percent.
The tax index adds up the various taxes paid to federal, provincial, and local governments, including direct taxes such as income taxes, sales taxes, Employment Insurance and Canadian Pension Plan contributions, and "hidden" taxes such as import duties, excise taxes on tobacco and alcohol, amusement taxes, and gas taxes.
Source: "Canadians' tax bill bigger than all necessities combined," Financial Post, April 17, 2007; based upon: Milagros Palacios and Niels Veldhuis, "The Canadian Consumer Tax Index, 2007," Fraser Institute, April 2007.
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