Tag Archives: Income Tax

News

Average Canadian family spends 42% of its income on taxes

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Story here from the libertarian Fraser Institute.

Excerpt:

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.

Videos

Paul Ryan debates on the relationship between tax rates and job creation

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On the Larry Kudlow show, discussing incentives and economics.

Here’s Paul Ryan on MSNBC talking about the budget and tax rates.

The Democrats on MSNBC really respect him.

And here’s Marsha Blackburn, too – on Fox News.

I’m getting very depressed about this economy, but it makes me happy to see these two fighting for me.

Videos

George Will explains Obama’s dependency agenda at CPAC 2010

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From Muddling Towards Maturity: George Will’s speech at the 2010 CPAC convention. He is a moderate conservative.

Part 1:

Topics: the conflict of freedom and equality, equal outcomes vs equal opportunities, wealth redistribution vs liberty, dependency on government, public sector vs private sector, cash for clunkers, state capitalism, credit, crony capitalism, subsidizing failure, TARP, profit and loss, risk, incentives, freedom to succeed or fail, cradle to grave welfare, SCHIP, socialized medicing, single payer health care, social security, medicare, vouchers, school choice, public education, public option, choice and competition, inter-state commerce.

Part 2:

Topics: health savings accounts, private property, stewardship and ownership, drug companies, health insurance, dependency agenda, entitlement mentality, lawsuits, trial lawyer lobby, tort reform, personal responsibility, stimulus, public and private sector wages and benefits, union payoffs, income tax, moral hazard, death tax, envy, farm subsidies, bureaucracy, schools vs families.

Here’s the graph he mentions of who pays for taxespays for taxes. High earners pay for everything and the low earners pay for nothing. High earners don’t depend on government but low earners do depend on government.

Part 3:

Topics: crisis as a means to enlarge government, manufacturing a crisis using massive deficits, environmentalism as a manufactured crisis, how bigger government means small individuals with less freedom, structure of american government, the founding fathers, free will, personal responsibility, small government.

By the way, many people are saying that Glenn Beck’s speech was the best of the conference. And you can watch it here at Caffeinated Thoughts. The best part starts at 25:25 minutes in where he explains being broke and turning his life around, and talking about the freedom to fail and personal responsibility.

UPDATE: ECM sent me this article about George Will’s appearance on ABC’s This Week.

Video:

Excerpt:

TERRY MORAN, HOST: There’s a sense that something is broken in Washington summed up this week by Senator Evan Bayh (D-Ind.) who announced his retirement. I think it’s fair to say he’s leaving in disgust. Here’s what he had to say.

SENATOR EVAN BAYH, (D-IND.): I have had a growing conviction that Congress is not operating as it should. There is much too much partisanship, and not enough progress. Too much narrow ideology, and not enough practical problem solving. Even at a time of enormous national challenge, the people’s business is not getting done.

MORAN: Is he right, George?
GEORGE WILL: Well, it’s hard to take a lecture on bipartisanship from a man who voted against the confirmation of Chief Justice Roberts, the confirmation of Justice Alito, the confirmation of Attorney General Ashcroft, the confirmation of Condoleezza Rice as Secretary of State. Far from being a rebel against his Party’s lockstep movement, Mr. Bayh voted for the Detroit bailout, for the stimulus, for the public option in the healthcare bill. I don’t know quite what his complaint is, but, Terry, with metronomic regularity, we go through these moments in Washington where we complain about the government being broken. These moments have one thing in common: The Left is having trouble enacting its agenda. No one when George W. Bush had trouble reforming Social Security said, “Oh, that’s terrible – the government’s broken.”