Taxes are Canadians Fastest Growing Expense-report :CRA SOTW

OTTAWA -- Canadians have seen their tax bill grow at a much faster rate than any other household expense over the past 49 years, according to a report released by the Fraser Institute Monday.

The report by the fiscally conservative think-tank showed the total tax bill of the average Canadian family has increased by 1,624% since 1961, while 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,” Niels Veldhuis, the study’s co-author and the Institute’s senior economist, said in a release. “Taxes have become the most significant item that Canadian consumers now face in their budgets.”

The report found in 2009, the average Canadian family earned an income of $69,175 and paid total taxes equalling $28,878 -- 41.7% of income. In 1961, the average Canadian family earned an income of $5,000 and paid $1,675 in total taxes -- 33.5% of income.
The authors also pointed out that personal income tax makes up only one-third of what the average Canadian family paid in taxes in 2009.

The figures are based on the institute’s Canadian Consumer Tax Index, which adds up the various taxes that the average Canadian family pays to federal, provincial and local governments -- including 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.
Meanwhile, a survey also released Monday by BMO Nesbitt Burns revealed 37% of Canadians are not confident they are taking advantage of all the tax breaks available to them, and 89% said they were not certain how recent tax changes would affect them personally.

Canwest News Service
© Copyright (c) National Post

You can view the report at:
http://www.fraserinstitute.org/commerce.web/product_files/canadian-consumer-tax-index-2010.pdf

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