Canadians are spending more on taxes than life’s necessities, a new Fraser Institute report states.
“The reality is, the average family spends more on taxes than it does on almost every other expenditure, including the three largest combined, which are housing, food and clothing,” Fraser Institute senior economist Niels Veldhuis said.
According to the Canadian Consumer Tax Index, Canadians spent 41% on their tax bill, on average, in 2010 versus 34% on food, shelter and clothing.
Veldhuis said that, for the past 25 years, average tax bills have stayed roughly at the 40% of income mark. The report indicates the gap between tax expenditures and expenditures on necessities is widening.
“You have a trend in the price of basic necessities going down while the tax bill hovers around 40% to 43%,” Veldhuis said.
The report calculates that, from1961 to 2010, the average Canadian’s total tax bill has increased by 1,686 %, while expenditures on shelter, food and clothing have increased by 1,175%, 498% and 510% respectively.