Taxes, not necessities, are your biggest household expense
Fraser Institute study finds food, shelter and clothing trail what the government takes.
VANCOUVER — You’d think the average Canadian family spends more on household expenses such as housing, food and clothing combined, but it’s actually taxes, finds a new study by the Fraser Institute.
The think-tank’s Canadian Consumer Tax Index, which tracks the total tax bill of the average Canadian family from 1961 to 2015, reveals the average family (including singles) earned $80,593 and paid $34,154 in total taxes last year, compared to $30,293 on housing (rent and own), food and clothing combined.
That’s 42.4% of income going to taxes and 37.6% going to basic necessities.
The Fraser Institute says this represents a marked shift since 1961, when the average family spent 33.5% on taxes and 56.5% on food, clothing and housing.
The total tax bill reflects both visible and hidden taxes paid to the federal, provincial and local governments, including income, payroll, sales, property, health, fuel and alcohol taxes.
Since 1961, the average Canadian family’s total tax bill has increased by 1,939%, while annual food costs increased 645%, clothing 746% and housing 1,425%.
Even accounting for inflation over the last 54 years, the tax bill has still increased 152.9%.
Click here for the complete report.