A Canadian family earning an average income spends more money each year on taxes than on food, shelter and clothing, according to a Fraser Institute report released this morning.
The Canadian Consumer Tax Index 2012 report found that:
- in 2011, the average Canadian family earned income of $74,233, paid 41% of that in taxes and spent 33.6% on shelter, food and clothing; whereas
- in 1961, the average family earned $5,000, paid 33.5% of that in taxes and spent 56.5% on the necessities.
The Fraser Institute’s report calculates that the average family’s tax bill has increased by 1,738% over the past 50 years. For the same time period, it found that shelter costs increased by 1,185%, food by 518% and clothing by 500%.
“Taxes from all levels of government make up the single largest expenditure facing Canadian families,” said Charles Lammam, Fraser Institute associate director of tax and budget policy research.
“In fact, the total tax bill has grown more rapidly than any other major item in an average family’s annual budget since 1961.”
According to the report, the tax bill increase has outpaced the increase in Statistics Canada’s Consumer Price Index (CPI), which rose by 663%. The CPI measures the average price consumers pay for goods and services including home, food, clothing, transportation, health and personal care, education and others.
A year ago, the Fraser Institute released a report that tracked the same trend. (See “Canadians sacrificing necessities for taxes: Fraser Institute” – BIV Business Today, April 26.)
