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Taxes, not necessities, are your biggest household expense

Fraser Institute study finds food, shelter and clothing trail what the government takes.

August 23, 2016   by PLANT STAFF

consumertaxindexVANCOUVER — 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.


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3 Comments » for Taxes, not necessities, are your biggest household expense
  1. Carole Rier says:

    I think most Canadians know they spend more on taxes than anything else. But do people at any level of gov’t care. I don’t believe so or they would still not be raising what we pay for hydro, licenses, property taxes etc. There is no end in sight. If gov’ts reined in the waste there would be enough money, but no they have never tried to do that. They think Canadians are an endless supply of money.

  2. Bobainturuncle says:

    There is nothing one can do to alleviate the taxes one pays.Except…. STOP SPENDING and lay down your labours. Then you will get a faster reaction from government and say we have had enough! Force government to RESET. Put Canadians First and steer a new course for prosperity. Will this happen? No! Instead we will ask for more money so we think we can stay ahead of the race while in reality we fall further behind.

  3. Sean says:

    Yes, and things are about to get a lot worse. If anyone thinks the new carbon tax scheme the government has devised has anything to do with the environment they have rocks in their head. Just another creative tax the government will collect and waste away with no accountability, the cost of which cascades down to all of us. I find it somewhat ironic that Canadians continue to expect the government to do more and more for us, from raising our kids to taking care of our needs from cradle to grave, while we know how totally dysfunctional our government is. They should be the last people we trust to do anything. We will quickly reject a politician who advocates cutting spending to address the false standard of living we have as it is artificial and debt dependent. We would rather vote for the naïve idiot who sings about sunny days while he gleefully digs the hole deeper and deeper. People get the government they deserve, which is exactly what we have, unfortunately.

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