STUDY: Taxes Are The Biggest Expense For Canadian Families

Money taken through taxes surpasses spending on food, housing, and clothing combined.

A new study by the Fraser Institute has found that the percentage of income Canadian families spend on taxes surpasses spending on basic necessities.

That means the government takes more of our money than we spend on our homes, clothing, and food.

It’s another sign of the ongoing growth of the state at the expense of our ability to provide for the necessities of life.

Some of the key figures from the study can be seen below:

  • The Canadian Consumer Tax Index tracks the total tax bill of the average Canadian family from 1961 to 2016. Including all types of taxes, that bill has increased by 2,006% since 1961.

  • Taxes have grown much more rapidly than any other single expenditure for the average Canadian family: expenditures on shelter increased by 1,527%, clothing by 677%, and food by 639% from 1961 to 2016.

  • The 2,006% increase in the tax bill has also greatly outpaced the increase in the Consumer Price Index (718%), which measures the average price that consumers pay for food, shelter, clothing, transportation, health and personal care, education, and other items.

  • The average Canadian family now spends more of its income on taxes (42.5%) than it does on basic necessities such as food, shelter, and clothing combined (37.4%). By comparison, 33.5% of the average family’s income went to pay taxes in 1961 while 56.5% went to basic necessities.

The historical record shows that the growth of government is not just about Canada having a bigger population or inflation over time. In real terms, the government takes far more of our money.

This gives more power to the bureaucratic managerial elite class, and puts our lives further under the control of politicians. It also means more centralization, and less creativity in our economy. The heavy hand of the state weighs down upon us, robbing our nation of opportunity and growth.

We should see this Fraser Institute study as a wake-up call to get the size of government under control. A smaller central government means more freedom, and more freedom means more prosperity. We must transfer power from the central government to the provinces, local communities, and most importantly, Canadian families.

Otherwise, the oppressive tax burden will only continue to grow, and our freedom will continue to be eroded bit by bit.

Read the full Fraser Institute Study here

Spencer Fernando

Photo – Fraser Institute