The average Canadian’s tax bill has outpaced the growth of the consumer price index, according to a Fraser Institute report released this morning.
The think tank’s Canadian Consumer Tax Index calculates that 42.7% of an average family’s 2012 income went towards taxes, contrasted with 36.9% spent on food, clothing and housing.
The report compared Canadians’ 2012 tax bill to 1961 – when, it calculates, the average Canadian family spent 56.5% of its income on food, clothing and housing and 36.9% on taxes.
“We’re always worried about shelter costs, especially here in Vancouver, but we don’t really worry about taxes and what they could mean for families,” Chales Lammam, associate director of the Fraser Institute, told Business in Vancouver.
Since 1961, social programs like universal health care and the Canada Pension Plan have been introduced, which could be expected to have an impact on the amount of tax Canadians pay. But Lammam said Canada should be looking to other countries who find more efficient ways to fund programs such as health care.
“The worry for me is that the [high tax] trend could continue, based on this year’s budget season,” said Lammam.
