The latest edition of the Canadian Consumer Tax Index highlights a concerning trend: the tax burden on Canadian families has surged dramatically, with a staggering 2,705% increase in total taxes from 1961 to 2023.
This rise is stark when compared to other essential expenditures such as shelter, food, and clothing, which have increased by 2,006%, 901%, and 478%, respectively.
The report reveals that the average Canadian family now spends 43.0% of its income on taxes, significantly more than the 35.6% spent on basic necessities like food, shelter, and clothing.
In 2023, the average family income stood at $109,235, with $46,988 allocated to taxes. This is a marked shift from 1961, when families earned $5,000 on average and paid $1,675 in taxes, representing 33.5% of their income.
The data underscores the growing financial strain on Canadian households, as taxes now consume a larger portion of their income than basic living expenses. This trend raises important questions about the sustainability of current tax policies and their impact on the standard of living for Canadians.
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