Canadians Celebrate Tax Freedom Day on June 11, 2012
In 2012, Canadians celebrate Tax Freedom Day on June 11. That is, Canadians will have worked until June 10 to pay the total tax bill imposed on them by all levels of government. 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.
- 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 2012, Canadians celebrate Tax Freedom Day on June 11. That is, Canadians will have worked until June 10 to pay the total tax bill imposed on them by all levels of government.
- Tax Freedom Day in 2012 arrives one day later than in 2011, when it fell on June 10.
- The later arrival of Tax Freedom Day in 2012 has been driven primarily by two factors. First, Canada?s economy is improving. When the economy recovers from a recession and 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. Second, several governments have increased taxes this year.
- In 2012, the federal government and most 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 22 to pay the tax bill. In other words, the Balanced Budget Tax Freedom Day arrives on June 23, 12 days later than Tax Freedom Day.
- The latest Tax Freedom Day in Canadian history was in 2000, when it fell on June 25, almost two months later than in 1961, the earliest year for which the calculation has been made.
- In 2012, the average Canadian family will earn $94,259 in income and pay a total of $41,627 in taxes (44.2 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 22 in Alberta while the latest fell on June 21 in Newfoundland & Labrador.
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