Here’s a statistic that should give all Canadians, especially taxpayers a reason to pause. The average Canadian family spent 43 per cent of its income on taxes in 2017, more than housing, food and clothing costs combined, finds a new study released on Tuesday by the right-wing Fraser Institute.
This amount is more than they spent on food, clothing and shelter combined. And to think that most Canadians probably think that most of their income goes toward the cost of a home!
Last year, the average Canadian family earned $85,883 and paid $37,058 in total taxes compared to $30,597 on housing (including rent and mortgage payments), food and clothing combined.
In fact, the average Canadian family paid more than twice as much of their income in taxes (43.1 per cent) as they did for housing (20.8 per cent). The basic necessities of life, which include food, clothing and housing, amounted to just 35.6 per cent of income—still less than the percentage of income going to taxes.
This represents a marked shift since 1961, when the average Canadian family spent much less on taxes (33.5 per cent) than on food, clothing and housing (56.5 per cent).
The total tax bill reflects both visible and hidden taxes that families pay to the federal, provincial and local governments including income, payroll, sales, property, carbon, health, fuel and alcohol taxes and more.
Since 1961, the average Canadian family’s total tax bill has increased by a staggering 2,112 per cent, dwarfing increases in annual housing costs (1,480 per cent), clothing (732 per cent), and food (625 per cent).
Even after accounting for inflation, the tax bill has still increased 166.4 per cent over this period.
Going by news headlines and spending priorities by the Liberals in Ottawa, the amount Canadians spend on taxes in the years to come can only increase. -CINEWS