Fraser Institute says Cdns pay 42.7% of income in taxes
2013-04-24 16:16 ET - Street Wire
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by Charles Lammam and Milagros Palacios of the Fraser Institute
Unless analyzing tax policy is part of your day job, you likely avoid thinking about what ultimately can be a polarizing topic. But with the deadline for filing our income tax returns around the corner, we are all forced to at least temporarily think about taxes. The deadline after all is a sharp reminder of how much income tax we paid throughout the year.
While some gladly pay their share -- thinking of the numerous government programs these tax dollars finance -- others feel their income tax burden is too high. No matter where you fall in this debate, to truly gauge whether you are getting value for your tax dollars, you must have a complete understanding of all the taxes you pay, in addition to income taxes.
For that you must look beyond your income tax returns because income taxes form only a portion of the total tax bill imposed on us by all levels of government (federal, provincial and local). According to our calculations, a Canadian family with average income of $74,113 paid $9,195 in income taxes in 2012. While personal income taxes are the single largest type of tax paid by families, they represent less than one-third of the total.
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This is problematic.
Posted by mace at 2013-04-24 16:31
Has anyone ever heard of an accountable government.
Not me.
Posted by mackey at 2013-04-25 10:23
Gotta love how they include insurance as taxes. CPP, EI and health INSURANCE are not taxes as such and it's pretty dirty to include that in the mix. If that's going to be the game, make sure when comparing American levels of taxation to include their healthcare premiums. The $3,302 in profit tax is another ugly distortion: no where near all families have a small business - it's probably closer to 10% of households. Another distortion: average household income is nearly $75k, but MEDIAN (a much more accurate picture concerning income) income is barely $70k. Of course, that number isn't as friendly to this 'unbiased' look at taxation since it would fall in a lower tax bracket (and concordant lower insurance premiums for CPP, EI and health). So to cherry-pick the worst possible combination of income, taxation, the most extreme of tax conditions, and looking under every rock to include more taxes, they still fall below 50%. In my humble approach (no profit tax, lower rates) the median family is paying roughly 31%. Also, most provinces were running surpluses before the Great Recession; most will be back in the black within three years including the Feds. Good ol Fraser Institute mularkey!
Posted by Richard at 2013-04-26 12:58
The figures are illustrative, and the article does say it uses averages. The point is a family could be spending as much on basic needs as on financing government and public services. There's a helpful breakdown by income quintile at the end of this page though of course that's also illustrative.
Another point is this: Depending on your definitions and formulas, 30% to 40% of the GDP goes to government and public services. The lower 30s are fine, but something like 42.7% is kind of high. See this.
Posted by mace at 2013-04-29 13:55
It is going to be alot worse folks.
Having been in the investment industry for 30 years.I have witnessed first hand the inability of investors to save.
The Finance Minister has voiced how the Canadian taxpayers have been irresponsible in saving for their retirement.
How could they when all governments have their hand in your back pocket.
The investor that made the sacrifices were pentalized by the same Finance Minister with the help of Bank of Canada Carney when they killed the Income Trust Investments. They whipped out billions of dollars of retirement funds. with a single policy of irresponsibility.(don't trust these people).
The central bankers of the world are futher eroding the savers bank accounts with their current low interest rate policies and the printing of money.
Carney and his central bank buddies are on an unproven experiment of printing money.
We have Stagflation with the redistribution of wealth from savers to non-savers.(There is no incentive to save with this policy).
Governments of the world are in a debt crises.Expect further increases in taxation and confication of your property.
There is only one way out of this mess. It is to Monitize out the Debt.
(every dollar of debt is paid with a fiat dollar currency).
Buy good quality dividend paying common shares they are much safer than any form of government debt. Move your money from Public investments(government bonds) to Private investments( common shares).
Don't drink the koolaid in believing that Government bonds of the world are AAA rated.The reason why the Cyprus Banks went bankrupt was due to Greek Bonds which were mandated by the Greek Government to hold as reserves.
bvw
Posted by
bvw at 2013-05-01 09:28
It is going to be alot worse folks.
Having been in the investment industry for 30 years.I have witnessed first hand the inability of investors to save.
The Finance Minister has voiced how the Canadian taxpayers have been irresponsible in saving for their retirement.
How could they when all governments have their hand in your back pocket.
The investor that made the sacrifices were pentalized by the same Finance Minister with the help of Bank of Canada Carney when they killed the Income Trust Investments. They whipped out billions of dollars of retirement funds. with a single policy of irresponsibility.(don't trust these people).
The central bankers of the world are futher eroding the savers bank accounts with their current low interest rate policies and the printing of money.
Carney and his central bank buddies are on an unproven experiment of printing money.
We have Stagflation with the redistribution of wealth from savers to non-savers.(There is no incentive to save with this policy).
Governments of the world are in a debt crises.Expect further increases in taxation and confication of your property.
There is only one way out of this mess. It is to Monitize out the Debt.
(every dollar of debt is paid with a fiat dollar currency).
Buy good quality dividend paying common shares they are much safer than any form of government debt. Move your money from Public investments(government bonds) to Private investments( common shares).
Don't drink the koolaid in believing that Government bonds of the world are AAA rated.The reason why the Cyprus Banks went bankrupt was due to Greek Bonds which were mandated by the Greek Government to hold as reserves.
bvw
Posted by
bvw at 2013-05-01 09:30
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