(Image credit: The Fraser Institute)
August 15, 2014
Study shows average Canadian citizens spend around 42% of income on taxes compared to just 36% on their everyday necessities.
Canada’s Fraser Institute, a public policy think tank, published a research study on Monday titled Taxes versus the Necessities of Life: The Canadian Consumer Tax Index, 2014. The findings of the study include data that suggests on average Canadians spend almost 42% of income on taxes — federal, provincial, local and indirect — but just 36% on simple everyday needs such as shelter, clothing and food. Additionally, the study revealed that tax expenditures have grown faster than any other basic need, having been just 33.5% of total income expenditures in 1961.
“While there’s no doubt that taxes help fund important services, the real issue is the amount of taxes that governments take compared to what we get in return. There is a lot of room for improvement when it comes to the delivery of government services,” stated Charles Lammam, co-author of the report.
Even though tax rates usually tend to increase over time as governments continue to provide a wider range of services, and the Canadian economy seems to be in overall good standing, Lammam still believes it behooves Canadians to question whether they are getting good value from their tax dollars.
“[Healthcare] is the largest and most important budget, but independent analyses have shown that Canada does not get same level of return for taxes on health care. We don’t get the same outcomes as others. We are faltering here and there is an opportunity for us to change the way programs work,” states Lammam.
Source: National Post
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