The Fraser Institute’s 2010 Canadian Consumer Tax Index shows the total tax bill for the average Canadian family has steadily increased since 1961 at a rate much faster than any other household expenditure. Taxes from all levels of government now take a greater part of a family’s income than basic necessities like food, clothing and housing.

Over the past 50 years, taxes have increased by a whopping 1,624 percent, while the cost of housing has increased 1,198 percent, food has increased by 559 percent and clothing has increased 526 percent in cost.

The Canadian Consumer Tax Index adds up the total taxes the average family pays to federal, provincial and municipal governments. It takes into account direct taxes such as income tax, which makes up one-third of a family’s bill, and “hidden” taxes such as import duties and gas taxes.

In 1961, the average family in Canada paid 33.5 percent of its $5,000 income in taxes. In 2009, the average family income had risen to $69,175, but the total taxes they paid was $28,878 – 41.7 percent.

Since the average family’s tax burden is reduced during economic slowdowns, the recent recession has caused Canadians to see a decrease in their total tax bills. But the government deficit spending incurred as a result of the economic downturn will eventually be passed along to citizens in the form of increased taxes.

The percentage of the family income that average Canadians must dedicate to necessities such as food, clothing and housing has decreased steadily since 1961, while the percentage dedicated to taxes has risen constantly. In 2009, while 41.7 percent of a family’s income went to taxes, only 37.1 percent was spent on the necessities of life.

If Canadians were required to pay all taxes up front, they would have to pay the government every dollar they made prior to Tax Freedom Day. The latest Tax Freedom Day in history was on the June 25th when the Liberals were in power in 2005. Since the Conservative government has taken power, it has continued to come earlier, falling on June the 5th in 2009.

We believe in providing citizens with the services they need, but we also believe they should not be expected to devote an exuberant portion of their income to support these programs.

We plan to continue to introduce tax breaks to help those who need it most. We are dedicated to combining social policy with fiscal responsibility in a way that considers the interests of all Canadians.

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