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According to data released from the Fraser Institute, Canadians spend more money on taxes than they do on food, clothing and shelter combined.
“Most people don’t realize it, but the average Canadian household now pays more in taxes than they spend on the basic necessities of life combined,” Charles Lammam, Director of Fiscal Studies at the Fraser Institute, said.
Lammam also wrote the Canadian Consumer Tax Index, which tracks the total tax bill of the average Canadian family from 1961 to 2015.
In 2015, the average Canadian family earned $80,593, and paid a total of $34,154 in taxes. In comparison, most spent $30,293 on housing, food and clothing put together.
A whopping 42.4 per cent of income went to taxes while 37.6 per cent went to basic necessities.
The total tax bill adds both visible and hidden taxes that families pay to the federal, provincial and local governments, including income, payroll, sales, property, health, fuel, alcohol taxes, and more.
According to the Fraser Institute, there has been quite a shift over the years.. In 1961, the average family spent 33.5 per cent on taxes and 56.5 per cent on housing, food, and clothing.
Since then, the average Canadian family’s total tax bill has increased by 1,939 per cent, while annual food costs are up 645 per cent, clothing is up 746 per cent and housing is up 1,425 per cent.
Once 54 years of inflation is factored in, the tax bill is still up 152.9 per cent.
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