NCPA - National Center for Policy Analysis

Canadians Celebrate Tax Freedom Day On June 30

July 6, 2000

Canada's Tax Freedom Day, the day Canadians finally start working for themselves, came on June 30, according to the Fraser Institute. From the beginning of the year, Canadians worked until June 29 to pay the total tax bill imposed by federal, provincial or local governments in the form of numerous taxes, fees and levies.

The date of Tax Freedom Day changes from year to year, reflecting changes in the tax burden. Provincial Tax Freedom Days show the variation in the tax burden among the provinces.

  • This year, Tax Freedom Day falls five days earlier than in 1999.
  • But it is still 58 days later than in 1961 -- the earliest year for which the calculation has been made -- when Tax Freedom Day was May 3.
  • By 1974, Tax Freedom Day advanced to June 8.
  • The earliest provincial Tax Freedom Day fell on May 30 in Newfoundland, while the latest date is July 8 in Quebec and British Columbia .

The Atlantic provinces historically have the earliest Tax Freedom Days due in part to the large share of their total revenue that comes from other provinces through the federal government. (Estimates of provincial Tax Freedom Days were also calculated without provincial revenues from natural resources -- an important source of income for some provinces, particularly Alberta.)

The five-day improvement in this year's Tax Freedom Day is to some extent a result of more prudent fiscal conduct by the various levels of government. Seven Canadian provinces and the federal government expect to have balanced budgets this year.

The analysis also shows that the top 30 percent of income earners pay 65.7 percent of all taxes and earn 58.3 percent of all income while the bottom 30 percent of all income earners pay 4.2 percent of all taxes and earn 9.1 percent of all income.

Source: News release, "Canadians Celebrate Tax Freedom Day on June 30," June 29, 2000, Fraser Institute, 4th Floor, 1770 Burrard Street, Vancouver, BC, Canada, V6J 3G7, (604) 688-0221.


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