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In this latest Canadian news release we examine how the average Canadian families income tax bill is higher than it spends on food.
A recent study has highlighted that the average Canadian family's tax outgoings are more than the total of all money spent on day to day living essentials combined. The report explains that the the average Canadian family spends 41.8 percent of its income on taxes. This percentage is higher than the total amount spent on food, shelter and clothing combined, which stands at 36.1 percent of household budgets. Fraser Institute, a leading think tank on public policy issues, has published this report.
In 2013, the average Canadian family had earnings of $77,381 or USD 70,749. Out of this income, they spent $32,369 on federal, provincial, and local government taxes. These include taxes on income, payroll, consumption, fuel, vehicles, import, tobacco and alcohol. Among these taxes, income taxes alone stood at $9,946. The second and third highest items were payroll taxes of $6,891 and sales taxes of $4,713 respectively. On the other hand, the families spent $16,678 on housing, $8,139 on food, and $3,132 on clothing. These three expenses totaled $27,949. These statistics imply that families have now lesser money to spend on things like education, retirement, and leisure.
The survey has analysed these percentages starting from the year 1961. As per the institute, the average tax bill has gone up by 1,832 percent from the base year. This rate is higher than increases in all other expenses from the same period. Among the major expenses, since 1961, spending on shelter has increased by 1,375 percent, on clothing has increased by 620 percent, and on food has increased by 546 percent. Back then, the average income stood at $5,000. Out of this tax payment was only $1,675 or 33.5 percent, and the combined spending towards food, clothing and shelter was higher at $2,824 or 56.5 percent.
The report provides some interesting food for thought and raises the question of the balance of tax and it's impact on our every day lives. Do you feel you pay too much tax? Are you finding it difficult to balance the money you have for every day essentials? Share you experience with us on facebook