Go to Main Content

Advertisement

By Special to MoneySense on August 24, 2017
Estimated reading time: 1 minute

Taxes trump living costs in Canadian family budgets: report

By Special to MoneySense on August 24, 2017
Estimated reading time: 1 minute

A Fraser Institute study shows taxes growing as percentage of income

Advertisement

TORONTO (NEWS680) — A new study finds Canadians are paying more than 40 per cent of their income on taxes, compared to just under 40 per cent on the basic necessities of life. The Canadian Consumer Tax Index by the Fraser Institute, which was released on Thursday, looked at tax bills from 1961 to 2016. Last year, the average Canadian family earned $83,105 but paid $35,283 in taxes compared to $31,069 spent on housing, food and clothing combined. Canadians spent 42.5 per cent of their income on taxes and 37.4 per cent on basic necessities, which include food, clothing and housing, the report found. In comparison, back in 1961, the average Canadian family spent 33.5 per cent on taxes and 56.5 per cent on food, clothing and housing. “Taxes help fund important public services that Canadians rely on, but the issue is the amount of taxes governments take compared to what Canadians get in return,” said Charles Lammam, a co-author of the report. “With more than 42 per cent of their income going to taxes, Canadians might ask whether they’re getting good value for their tax dollars.” According to the report, taxes have grown more rapidly 1961 to 2016 than any other household expense. Money spent on housing increased by 1,527 per cent, clothing by 677 per cent, and food by 639 per cent. In the same time period, the tax bill has risen by 2,000 per cent. The increase in the tax bill outpaced the rise in the Consumer Price Index. MORE ABOUT TAXES:

Comments Cancel reply

Related Articles

Canadians’ financial stress grows despite interest rate cuts

Many Canadians believe their financial situation will worsen this year, according to an MNP report on consumer debt.

Canadians’ financial stress grows despite interest rate cuts

How to work out for cheap in Canada

A new workout routine doesn’t need to be a heavy lift for your budget.

How to work out for cheap in Canada

Aritzia’s profit soars in Q3

The apparel retailer’s profit jumped 72% in Q3, as its e-commerce and U.S. net revenue spiked.

Aritzia’s profit soars in Q3

Estate Planning

Inheritances can strain sibling relationships—how to make estate planning smoother

Communication is key to ensuring an inheritance doesn’t cause friction between siblings. Follow these tips to avoid conflicts in...

Inheritances can strain sibling relationships—how to make estate planning smoother

Justin Trudeau announces his resignation at a press conference

CRA to continue administering changes to capital gains tax during prorogation

The increase to the capital gains inclusion rate is going ahead—at least for now, says Canada’s Finance Department.

CRA to continue administering changes to capital gains tax during prorogation

How prorogation will impact capital gains tax changes in Canada

The Canada Revenue Agency has yet to offer guidance on how the Liberals’ capital gains tax proposal will be...

How prorogation will impact capital gains tax changes in Canada

Canadian woman working at a payday loans, checking the risk of a potential client.

Canada has new rules for high-interest loans—here they are

Canada has new rules for high-interest loans—here they are

A photo of the TMX Market Centre building in downtownToronto

Will Canada’s economy grow in 2025?

For 2025, experts predict economic growth, but slower gains and more volatility.

Will Canada’s economy grow in 2025?

Close-up of a Canadian 20 dollar bill

Changes to Canada’s tax brackets, CPP contributions and more in 2025

It's a new year. What financial changes will take effect in Canada in 2025?

Changes to Canada’s tax brackets, CPP contributions and more in 2025

Two young girls play on the swings

CCB payment dates in 2025, and more to know about the Canada Child Benefit

Parents, here are the CCB payment dates for 2025, along with how much you can expect to receive each...

CCB payment dates in 2025, and more to know about the Canada Child Benefit