Canadians Celebrate Tax Freedom Day on June 5, 2010
On Tax Freedom Day, the average Canadian family has earned enough money to pay the taxesimposed 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 2010, Canadians celebrate Tax Freedom Day on June 5. That is, Canadians will have worked until June 4 to pay the total tax bill imposed on them by all levels of government.
- Tax Freedom Day in 2010 arrives three days later than in 2009, when it fell on June 2.
- The later arrival of Tax Freedom Day in 2010 is primarily due to Canada?s improving economy following the country?s emergence from the recession of 2009. When the economy recovers and incomes increase, a family?s tax burden tends to increase to a greater extent. That is partly because consumption increases, which results in an increase in the amount of sales and other consumption taxes Canadian families pay.
- In 2010, the federal government and all 10 provincial governments expect to run budget deficits. Today?s deficits must one day be paid for by taxes. Therefore, deficits should be considered as deferred taxation. Had Canadian governments increased tax rates to balance their budgets, the average Canadian family would have worked until June 29 to pay the tax bill. In other words, the Balanced Budget Tax Freedom Day arrives on June 30, 25 days later than Tax Freedom Day.
- The latest Tax Freedom Day in Canadian history was in 2005, when it fell on June 23, almost two months later than in 1961, the earliest year for which the calculation has been made.
- Between 2005 and 2009, Tax Freedom Day for the average Canadian family decreased steadily.
- In 2010, the average Canadian family earned $92,754 in income and paid a total of $39,141 in taxes (42.2 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 19 in Alberta.
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