BUSINESS TAXES ARE CANADIANS FASTEST GROWING EXPENSE
April 28, 2010
Canadians have seen their tax bill grow at a much faster rate than any other household expense over the past 49 years, according to a report released by the Fraser Institute. The report by the fiscally conservative think tank showed the total tax bill of the average Canadian family has increased by 1,624 percent since 1961, while expenditures on housing increased by 1,198 percent, food by 559 percent and clothing by 526 percent from 1961 to 2009.
- In 2009, the average Canadian family earned an income of $69,175 and paid total taxes equaling $28,878 -- 41.7 percent of income.
- In 1961, the average Canadian family earned an income of $5,000 and paid $1,675 in total taxes -- 33.5 percent of income.
The authors point out that personal income tax makes up only one-third of what the average Canadian family paid in taxes in 2009.
According to Niels Veldhuis, the study's co-author and a senior economist with Fraser, "Taxes have grown much more rapidly than any other single expenditure item for Canadian families to the point where taxes from all levels of government take a greater part of a family's income than basic necessities such as food, clothing and housing."
Source: CanWest News Service, "Business Taxes are Canadians fastest growing expense," Vancouver Sun, April 19, 2010; based upon: Milagros Palacios and Niels Veldhuis," The Canadian Consumer Tax Index, 2010," Fraser Institute, April 2010.
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