A newly released study confirms what many Canadians already grapple with – the exorbitant amount that they pay in taxes to various levels of government.
The average Canadian family gives 45% of its household income to taxes, according to a recent Consumer Tax Index study conducted by the Fraser Institute.
Taxes account for the highest household expenditure for the average Canadian family, outpacing combined spending on basic necessities like food, shelter, and clothing, with the government seizing nearly half of familial household income.
“In 2022, the average Canadian family, including both families and unattached individuals, earned cash income of $106,430,” the full report reads.
That means that the average Canadian family nets the equivalent of what Prime Minister Justin Trudeau is on track to spend on groceries this fiscal year.
Taxes have outpaced all other cash expenditures since 1961, which is the year that the Canadian Consumer Tax Index began tracking the tax bill of the average Canadian family.
“Average cash income rose by 2,029% from 1961 to 2022, overall consumer prices rose by 863%, expenditures on shelter by 1,880%, food by 870%, and clothing by 654%. Meanwhile, the tax bill of the average family grew by 2,778%,” the report reads.
Canadians can expect this percentage to continue to increase.
A “New Year’s Tax Changes” report from the Canadian Taxpayers Federation (CTF) details higher employment insurance (EI) premiums, increases to the Canada Pension Plan (CPP) and continued increases to the newly instituted carbon tax.
The cost of living in various provinces all across Canada has risen exuberantly and has most impacted low and middle-income earners and younger households.
Poor policy and big government are decimating the standard of living and Canadians are certainly not getting more bang for their buck.