How Much Tax Does A Typical Family Pay?

Tax Piggy Bank is now fatter than savings piggy bank.

Canadian Paying Too Much TaxesA recent report indicates Canadian families are now pyaing more in taxes than for food, clothing and shelter combined!!! In 2010, a family with an average income of $72,400 spent about 41% of its income on taxes ($29,913), while spending 34% on the necessities of life. Taxes include those paid to municipal, provincial and federal governments such as income tax, HST/PST/GST, EI, CPP, as well as ‘hidden’ taxes like import duties, excise taxes on tobacco and alcohol, amusement taxes and gasoline. The most hideous of all…TAXES on TAXES!!!

Canadian government itself is the single biggest household expense for all Canadian families. OMG. That’s crazy. *sigh* For an 8-hour working day, I’ve already donate 3 hours of my time FREE to the politicians.

Canadian families paid more in taxes than necessities of life in 2010: study

Canadians are now paying more money in taxes than for food, clothing and shelter combined, a new study suggests.

The Fraser Institute, a right-wing policy think-tank, released a report Tuesday that concludes the average family’s largest expenditure was the government in 2010.

“The average Canadian family has seen its total tax bill increase by an astounding 1,686 per cent over the past 49 years. As a result, taxes have become the most significant item in family budgets,” said Niels Veldhuis, senior economist and co-author of the Canadian Consumer Tax Index 2011.

The tax index tracks the price of goods and services government buys on behalf of Canadians and is similar to the Consumer Price Index compiled by Statistics Canada.

Taxes include those paid to municipal, provincial and federal governments such as income tax, sales tax, Employment Insurance, Canada Pension Plan, as well as ‘hidden’ taxes like import duties, excise taxes on tobacco and alcohol, amusement taxes and gasoline.

In 2010, a family with an average income of $72,393 spent about 41.3 per cent of its income on taxes ($29,913), while spending 34 per cent on the necessities of life, the study found.

Fifty years ago (1961), Canadians only paid 33.5 per cent on taxes ($1,675) and 56.5 per cent was spent on food, clothing and shelter. The average family income in 1961 was $5,000.

The study also considers the affect of long-term deficits on the tax bill of Canadians since they must eventually be paid.

“If we include government deficits, we see the total tax bill for the average Canadian family is actually $33,275 in 2010, not $29,913. This means the average Canadian family faces a future tax bill of an additional $3,362,” said Charles Lammam, Fraser Institute senior policy analyst.

Without a plan to fix such deficits, the study concludes Canadian families face even more taxation in the future.

Source: yahoo

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2 Responses to How Much Tax Does A Typical Family Pay?

  1. nand on 2011/06/17 at 5:58 pm

    i think we all are facing this due to no control on profit on anything..how? lets take an example of cloths…when people buy cloth worth of $100 then $45 to $50 they are just paying the margin which means they didnt get the materials against their money..plus they have to pay tax on that..the buisess will pay same tax to geverment (which will be ultimately charged to the customer) so now customer will pay for everything for shop owner..

    this dont work because on the other hand they do not make enough money to cover that expenses..they will still get the regular salary..so obviously when they will pay more and more ridicule profit they will ask more money from their employer..employer wont pay it through his own pocket.he will charge his customer more to cover that..which create the same gap to the buyer of that product..now to cover that buyer will charge somebody else to cover it!!! this never ends up and everybody becomes the part of this cycle one after one!!! this is what create devaluation of money as buyer is not getting the proper materials against his money..more you want to make money more you have to pay..

    if customer is able to buy proper things against his money then i dont think so he will ask more money from his boss because he is getting everything in his salary at a satisfactory level.. so its time to maintain the profit at HEALTHY level and do not allow big corporation to make ridiculous profit..which will automatically cut down prices of everything..

  2. Gerard on 2011/06/05 at 1:32 pm

    This isn’t as weird as it sounds. Canadians pay for a lot of things through government (and thus taxes) that people in other countries pay for separately. Health care, transit, and education come to mind. Also, compared to the past, we pay comparatively little for food (factory farms, government subsidies), clothing (outsourced to low minimum wage countries), and even shelter (lots of land here, many paid off mortgages, some rent control). A non-Fraser-Institute way of looking at it is to say that it’s our high taxes that allow us to pay less for the necessities of life.

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