Advertisement
A Fraser Institute study shows taxes growing as percentage of income
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:
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Consumer debt reached a record $2.5 trillion last quarter. Find out what’s driving increased debt levels among certain groups...
Economists share how the temporary tax cut and relief cheques may play into Canada’s growth picture.
Here’s how to get your free ticket to attend the MoneyShow virtual expo.
Nvidia beats earnings expectations as investors eye demand for Blackwell AI chips.
The world’s biggest cryptocurrency topped USD$98,000 on Nov. 21. As it inches ever closer to six figures, investors wonder:...
Canada’s inflation rate rose to 2% last month, up from 1.6% in September, but a December interest-rate cut is...
Why Canadians are still feeling the squeeze of high food costs, and what to do about it.
If you’re one of the many Canadians looking for Black Friday and Cyber Monday discounts, here’s how to know...
A new Desjardins report predicts rent inflation will slow in the next few years.
