Tax Piggy Bank is now fatter than savings piggy bank.
A 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.