Taxes versus the Necessities of Life: The Canadian Consumer Tax Index, 2016 Edition
— Published on August 23, 2016

Summary
- The Canadian Consumer Tax Index tracks the total tax bill of the average Canadian family from 1961 to 2015. Including all types of taxes, that bill has increased by 1,939% since 1961.
- Taxes have grown much more rapidly than any other single expenditure for the average Canadian family: expenditures on shelter increased by 1,425%, clothing by 746%, and food by 645% from 1961 to 2015.
- The 1,939% increase in the tax bill has also greatly outpaced the increase in the Consumer Price Index (706%), 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 (42.4%) than it does on basic necessities such as food, shelter, and clothing combined (37.6%). By comparison, 33.5% of the average family’s income went to pay taxes in 1961 while 56.5% went to basic necessities.
- In 2015, the average Canadian family earned an income of $80,593 and paid total taxes equaling $34,154 (42.4%). In 1961, the average family had an income of $5,000 and paid a total tax bill of $1,675 (33.5%).
Authors:
More from this study
Subscribe to the Fraser Institute
Get the latest news from the Fraser Institute on the latest research studies, news and events.