Canadians spending more on taxes than necessities, claims thinktank

Aug 23 2016, 6:14 pm

In this world nothing can be said to be certain, except death and taxes. So said Benjamin Franklin. Maybe.

So it should come as no surprise that Canadians are spending a lot on taxes – in fact, more on taxes, as a proportion of our income, than on basic necessities.

At least, according to the Fraser Institute.

The public policy thinktank studied the income earned, taxes paid and money spent on housing, food, and clothing by Canadians, both with families and unattached.

The analysis took into account all taxes – income, payroll, health, sales, property, profit, liquor, tobacco, amusement, excise, auto, natural resource, import and others.

On average, it found, in 2015, Canadians spent 42.4% of their income on paying those taxes, as opposed to the 37.6% they spent on necessities.

By comparison, the institute says, in 1961, Canadians spent 33.5% of the average family’s income on taxes, and 56.5% on necessities.

Predictably, the institute also found taxes have increased quicker than any other expenditure for the average Canadian family.

While spending on housing increased by 1,425% since 1961, for example, tax expenditure increased by 1,939% in the same time period.

We’re not sure what Ben Franklin would think…but he probably wouldn’t be surprised.