Today is 'Tax Freedom Day' Fraser Institute says
Group says typical Canadian family will pay 43% of their income in taxes this year
Today, June 10, is the day when the typical Canadian family stops working to pay the tax man, and starts working to pay themselves.
That's according to an annual analysis by the Fraser Institute, which has declared today its annual "Tax Freedom Day."
By the Fraser Institute's math, the average Canadian family will work for more than five months' worth of income — from January 1 to June 9 — to pay the various and sundry taxes from all three levels of government before taking any of it home.
Adding up all the income taxes, payroll taxes, health taxes, sales taxes, property taxes, fuel taxes, vehicle taxes, profit taxes, import taxes, "sin" taxes and more, the average Canadian family (with two or more people) will pay $44,980 in total taxes or 43.7 per cent of its annual income toward taxes.
That theoretical bill is paid in full today, which means we're all working for ourselves from here on out.
Greater tax burden this year
The group says this year, the day falls one day later than it did last year because the total tax bill has increased by 3.1 per cent, and that's more than a 2.1 per cent increase in incomes.
"Governments across Canada are partly to blame for the increased tax burden because many have raised taxes again this year," Fraser's director of fiscal studies Charles Lammam said.
The average Canadian family will pay $1,353 more in taxes this year, led by income taxes ($927), payroll and health taxes ($312), sales taxes ($195) and auto, fuel and motor vehicle taxes ($55),
This year's later Tax Freedom Day continues a trend of delays that began in 2009 when it fell on June 3.
The group says if budgets deficits are factored in, the date would be even later because it views deficits as "deferred taxes" that must be paid eventually. If those numbers are factored in, Tax Freedom Day wouldn't come until this weekend.
But the tax burden isn't equal across the country. According to the Fraser Institute, Tax Freedom Day really falls on different days in different provinces, depending on their level of taxation.
- Alberta, May 19 — one day earlier than last year
- British Columbia, June 6 — same as last year
- Saskatchewan, June 6 — two days later than last year
- Prince Edward Island, June 8 — one day later than last year
- Ontario, June 10 — two days later than last year
- Manitoba, June 11 — one day later than last year
- Nova Scotia, June 13 — one day later than last year
- New Brunswick, June 14 — one day later than last year
- Quebec, June 16 — four days later than last year
- Newfoundland & Labrador, June 21 — one day earlier than last year