income tax

A new year can bring new possibilities. It’s a chance to take stock of what we’ve accomplished in the past year and to set new goals for the future. It’s also, however, when Canadian governments typically enact new taxes. Unfortunately, governments across the country in recent years have been all too keen to bring in new taxes or increase existing ones, resulting in squeezed household budgets. The question for 2014 then, is will this trend continue or will governments recognize it’s time to give taxpayers a break?

Discussions about taxes are inevitably polarizing. Some Canadians think taxes are too high while others happily pay their share. But given the litany of taxes levied on us by the three levels of government, it is nearly impossible to get a sense of how much we truly pay.

As the stress of the April 30th tax filing deadline fades and the shock realization by most Canadians regarding how much income and payroll taxes they pay subsides, it’s worthwhile considering the costs imposed on Canadians to comply with tax regulations.

All told, governments in Canada expect to collect $586.6 billion in 2013 (fiscal 2013-14). There are, however, significant costs beyond the simple dollars extracted.