Canadians Celebrate Tax Freedom Day on June 10, 2013
The Fraser Institute annually calculates Tax Freedom Day in order to provide a comprehensive and easily understood indicator of the overall tax burden faced by the average Canadian family. In 2013, Tax Freedom Day fell on June 10, two days later than 2012 when Tax Freedom Day fell on June 8.
- On Tax Freedom Day, the average Canadian family has earned enough money to pay the taxes imposed on it by the three levels of government: federal, provincial, and local.
- In 2013, Canadians celebrate Tax Freedom Day on June 10. That is, Canadians will have worked until June 9 to pay the total tax bill imposed on them by all levels of government.
- Tax Freedom Day in 2013 arrives two days later than in 2012, when it fell on June 8.
- The later arrival of Tax Freedom Day in 2013 has been driven primarily by two factors. First, several governments have increased taxes this year. Second, Canada?s economy has improved since the recession. As incomes increase, a family?s tax burden tends to increase to a greater extent. That is partly due to our progressive tax system and because people?s consumption increases, which results in an increase in the amount of sales and other consumption taxes Canadian families pay.
- In 2013, the federal government and six provincial governments expect to run budget deficits. Since today?s deficits must one day be paid for by taxes, deficits should be considered as deferred taxation. Had Canadian governments increased taxes to balance their budgets, the average Canadian family would have worked until June 18 to pay the tax bill. In other words, the Balanced Budget Tax Freedom Day arrives on June 19, nine days later than Tax Freedom Day.
- The latest Tax Freedom Day in Canadian history was in 2000, when it fell on June 24, almost two months later than in 1961, the earliest year for which the calculation has been made.
- In 2013, the average Canadian family will earn $97,254 in income and pay a total of $42,400 in taxes (43.6 percent).
- Tax Freedom Day for each province varies according to the extent of the provincially levied tax burden. The earliest provincial Tax Freedom Day fell on May 19 in Alberta while the latest fell on June 22 in Newfoundland & Labrador.
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