Canadians’ tax burden sky rockets over last 50 years

Do Canadians pay too much tax?

Earlier this month, the left-leaning Broadbent Institute published a study claiming Canadians wouldn't mind paying higher taxes if it meant protecting our social programs such as health care, post-secondary education and pensions.

But a new report from the right-leaning Fraser Institute suggests our tax burden is already too high.

The Canadian Consumer Tax Index 2012 calculates that over the past 50 years, an average family's total tax bill has increased by a staggering 1,738 per cent, while over the same period the cost of shelter increased by 1,185 per cent, food by 518 per cent, and clothing by 500 per cent.

"Taxes from all levels of government make up the single largest expenditure facing Canadian families," Charles Lammam, Fraser Institute associate director of tax and budget policy research, said in a press release.

"In fact, the total tax bill has grown more rapidly than any other major item in an average family's annual budget since 1961."

The report also notes that in 1961, the average family spent 56.5 per cent of its income to pay for shelter, food, and clothing; in the same year, 33.5 per cent of the family's income went to government taxes.

By 2011, the situation was reversed from 1961: the average family spent 33.6 of its income on the necessities of life while 41.5 per cent of its income went to taxes.

Gregory Thomas, federal director of the Canadian Taxpayers Federation says, ultimately, we're not getting value for our tax dollars.

"We pay far more in taxes than we receive in services," he said in an email to Yahoo! Canada News.

"So much taxpayer money is drained off in transfer payments, bureaucracy, and $16 glasses of orange juice for cabinet ministers."

Thomas also warns that current deficits may be a harbinger for even heavier tax burdens in the future.

"Interest charges on government debt are rising and outstripping increases in spending on health care and education," he said.

"Anyone who has personal debt understands that once you borrow money, you have it pay it back , and it costs you more."

Income, taxes, and selected expenditures of the average Canadian family (dollars):

Source: Fraser Institute