CANADIANS CELEBRATE TAX FREEDOM DAY ON JUNE 20TH
June 20, 2007
June 20 marks the first day of the year that Canadians have paid off the total tax bill imposed on them by government and can finally start working for themselves, according to the Fraser Institute's annual Tax Freedom Day calculations.
- In 2007, the average Canadian family (with two or more individuals) will earn $83,775 and pay a total of $38,992 in taxes, for a total tax bill amounting to 46.5 percent of its income.
- The average Canadian family will see its income increase by 3.4 percent ($2,760) between 2006 and 2007 while the total tax bill increases by 1.5 percent ($580).
- The largest increase among the myriad of taxes comes in the form of property taxes, up $279 for the average Canadian family.
- Other notable increases come in profit taxes ($256) and social security taxes ($118). Liquor taxes and natural resource levies both decreased between 2006 and 2007.
Despite many Canadians facing tax increases, this year's Tax Freedom Day arrives earlier in part because of the federal government's 2006 reduction of the Goods and Services Tax (GST) to six percent from seven percent, says Niels Veldhuis, director of Fraser's Center for Tax Studies.
But the news isn't all positive. "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," says Veldhuis.
Source: "Canadians celebrate Tax Freedom Day on June 20th," Fraser Institute, June 19, 2007.
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