Story here from the libertarian Fraser Institute.
The total tax bill for the average Canadian family has increased at a much faster rate since 1961 than any other single household expenditure, according to a new study released today by the Fraser Institute, Canada’s leading public policy think tank. The Canadian Consumer Tax Index 2010, which calculates the total tax bill of the average Canadian family, found that taxes have increased by a whopping 1,624% since 1961. In contrast, expenditures on housing increased by 1,198%, food by 559%, and clothing by 526% from 1961 to 2009. “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,” said Niels Veldhuis, the study’s co-author and the Institute’s senior economist.
How much do Canadians pay in taxes?
The Canadian Consumer Tax Index calculates the total tax bill of the typical Canadian family by adding up the various taxes that the family pays to federal, provincial, and local governments. These include direct taxes such as income taxes, sales taxes, Employment Insurance and Canadian Pension Plan contributions, as well as “hidden” taxes such as import duties, excise taxes on tobacco and alcohol, amusement taxes, and gas taxes.
This year’s index shows that even though family incomes have increased significantly since 1961, the total tax bill has increased at a much higher rate.
- In 2009, the average Canadian family earned an income of $69,175 and paid total taxes equaling $28,878-41.7 per cent of its income.
- In 1961, the average Canadian family earned an income of $5,000 and paid $1,675 in total taxes-33.5 per cent of its income.
Taxes have become the most significant item that Canadian consumers now face in their budgets,” Veldhuis said.
So the typical Canadian family, pays 42% of their family income in taxes. FORTY-TWO PERCENT. Remember, Canada has a VAT tax, which is what Obama is apparently considering to pay for all his spending on bailouts for his rich Democrat buddies.
The Fraser Institute is the equivalent of our Cato Institute. I don’t agree with either of them on many things, (e.g. – Darwinism), but on the topic of taxes being too high, I agree with them both.