Study
| EST. READ TIME 1 MIN.Average Canadian family spends more on taxes than basic necessities
The Canadian Consumer Tax Index tracks the total tax bill of the average Canadian family from 1961 to 2014. Including all types of taxes, that bill has increased by 1,886% since 1961.
Taxes have grown much more rapidly than any other single expenditure for the average Canadian family: expenditures on shelter increased by 1,366%, clothing by 819%, and food by 561% from 1961 to 2014.
The 1,886% increase in the tax bill has also greatly outpaced the increase in the Consumer Price Index (697%), which measures the average price that consumers pay for food, shelter, clothing, transportation, health and personal care, education, and other items.
The average Canadian family now spends more of its income on taxes (42.1%) than it does on basic necessities such as food, shelter, and clothing combined (36.6%). By comparison, 33.5% of the average family’s income went to pay taxes in 1961 while 56.5% went to basic necessities.
In 2014, the average Canadian family earned an income of $79,010 and paid total taxes equaling $33,272 (42.1%). In 1961, the average family had an income of $5,000 and paid a total tax bill of $1,675 (33.5%).
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Milagros Palacios
Director, Addington Centre for Measurement, Fraser InstituteMilagros Palacios is the Director for the Addington Centre for Measurement at the Fraser Institute. She holds a B.S. in IndustrialEngineering from the Pontifical Catholic University of Peru and a M.Sc. in Economics from the University of Concepcion, Chile. Ms. Palacios has studied public policy involving taxation, government finances, investment, productivity, labour markets, and charitable giving, for nearly 10 years. Since joining the Institute, Ms. Palacios has authored or coauthored over 70 comprehensive research studies, 70 commentaries and four books. Her recent commentaries have appeared in major Canadian newspapers such as the National Post, Toronto Sun, Windsor Star, and Vancouver Sun.… Read more Read Less… -
Charles Lammam
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Feixue Ren
Feixue Ren is a former Economist at the Fraser Institute. She holds a M.A. in Economics from Lakehead University and aB.A. in Statistics from Hunan Normal University in China. She has co-authored an assortment of studies on fiscal and labour market policy issues.… Read more Read Less…
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