Sunday, August 27, 2023

Taxes cost Canadians more than food and shelter

In 2022, the average Canadian family spent over 25% more on taxes than on food, shelter, and clothing combines.  

Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2023 edition | Fraser Institute | Jake Fuss and Grady Munro:

August 22, 2023 - "The Canadian Consumer Tax Index tracks the total tax bill of the average Canadian family from 1961 to 2022. Including all types of taxes, that bill has increased by 2,778% since 1961.

  • Taxes have grown much more rapidly than any other single expenditure for the average Canadian family: expenditures on shelter increased by 1,880%, food by 870%, and clothing by 654% from 1961 to 2022.
  • The 2,778% increase in the tax bill has also greatly outpaced the increase in the Consumer Price Index (863%), which measures the average price that consumers pay for food, shelter, clothing, transportation, health and personal care, education, and other items.
  • The average Canadian family now spends more of its income on taxes (45.3%) than it does on basic necessities such as food, shelter, and clothing combined (35.6%). By comparison, 33.5% of the average family’s income went to pay taxes in 1961 while 56.5% went to basic necessities.
  • In 2022, the average Canadian family earned an income of $106,430 and paid total taxes equaling $48,199 (45.3%). In 1961, the average family had an income of $5,000 and paid a total tax bill of $1,675 (33.5%).

The Fraser Institute is an independent, non-partisan research and educational organization based in Canada. We have offices in Calgary, Halifax, Montreal, Toronto, and Vancouver.

Read more: https://fraserinstitute.org/studies/taxes-versus-necessities-of-life-canadian-consumer-tax-index-2023-edition

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