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Taxes Versus the Necessities of Life

13 Aug 2018

In 2017, the average Canadian family earned The 2,112% increase in the tax bill has also an income of $85,883 and paid total taxes greatly outpaced the increase in the Consumer equaling $37,058 (43.1%). [...] That said, the Fra- In dollars As % ser Institute annually calculates the most com- ($) of total prehensive and easily understood indicator of taxes the overall tax bill of the average Canadian fam- ily: Tax Freedom Day (see Palacios and Lammam, Taxes 2018). [...] This publication draws from those calcu- Income taxes 11,439 30.9% lations and examines what has happened to the Payroll & health taxes 7,145 19.3% tax bill of the average Canadian family over the Sales taxes 5,400 14.6% past 56 years.1 To do this, we have constructed Property taxes 4,136 11.2% an index of the tax bill of the average Canadian Profit tax 4,390 11.8% family, the Canadian Consumer Ta [...] While this adjustment has the Unfortunately, the federal and provincial gov- effect of reducing the steepness of the index’s ernments have reverted to deficits to finance path over time, the inflation-adjusted Consum- their expenditures in recent years.5 Of course, er Tax Index nevertheless increased by 166.4% over the period (see table 3). [...] The total tax bill of the average family would be Meanwhile, the tax bill of the average family higher than it actually is if, instead of financing grew by 2,112%.
economics economy taxation inflation consumer price index payments prices tax statistics canada tax rate taxes consumer prices human activities government budget balance deficits levied government finances flation
ISSN
22918620
Pages
11
Published in
Vancouver, BC, CA

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