Canadians celebrate Tax Freedom Day Wednesday. Today is the day in the year when taxpayers earnings start coming in for the wage-earner, rather than the government..That was the finding in a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank..Tax Freedom Day calculates the total annual tax burden imposed on Canadian families by federal, provincial, and municipal governments..This yearly cut-off comes four days later than in it did in 2021, the latest date in the last 15 years. Last year, the day arrived June 11. It means Canadians are spending more of the year working for the government..“If Canadians paid all their taxes up front, they would work the first 165 days of this year before bringing any money home for themselves and their families,” said Jake Fuss, associate director of fiscal studies at the Fraser Institute..In 2022, the average Canadian family of two or more people will fork out $58,567 in total taxes. That’s 45.2% of its annual income — the average being $129,589 going to government coffers..That’s almost five and a half months to pay out for income taxes, payroll taxes (including the Canada Pension Plan), health taxes, sales taxes like GST, property taxes, fuel taxes, carbon taxes, “sin” taxes, and more..Represented as days on the calendar, the total tax burden runs from January 1 to June 14. On June 15 — Tax Freedom Day — Canadians finally start keeping their own money..But Canadians should also be worried about the $86 billion in deficits the federal and provincial governments are forecasting this year. It means they will likely have to pay substantially more in tax in the coming years..For clarity, the study also calculates a Balanced Budget Tax Freedom Day. This is the day of the year when the average Canadian would finally begin working for themselves if the government paid for the year’s spending with taxes collected this year..It means if the government wasn’t using borrowed money to pay for spending, it would be taking even more of Canadians’ hard-earned wages. In 2022, the Balanced Budget Tax Freedom Day wouldn’t arrive until July 2 — another 17 days from now..“Tax Freedom Day helps put the total tax burden in perspective, and helps Canadians understand just how much of their money they pay in taxes every year,” Fuss said..“Canadians need to decide for themselves whether they are getting their money’s worth when it comes to how governments are spending their tax dollars.”.Tax Freedom Day for each province is different according to the extent of the provincially and locally levied tax burden.
Canadians celebrate Tax Freedom Day Wednesday. Today is the day in the year when taxpayers earnings start coming in for the wage-earner, rather than the government..That was the finding in a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank..Tax Freedom Day calculates the total annual tax burden imposed on Canadian families by federal, provincial, and municipal governments..This yearly cut-off comes four days later than in it did in 2021, the latest date in the last 15 years. Last year, the day arrived June 11. It means Canadians are spending more of the year working for the government..“If Canadians paid all their taxes up front, they would work the first 165 days of this year before bringing any money home for themselves and their families,” said Jake Fuss, associate director of fiscal studies at the Fraser Institute..In 2022, the average Canadian family of two or more people will fork out $58,567 in total taxes. That’s 45.2% of its annual income — the average being $129,589 going to government coffers..That’s almost five and a half months to pay out for income taxes, payroll taxes (including the Canada Pension Plan), health taxes, sales taxes like GST, property taxes, fuel taxes, carbon taxes, “sin” taxes, and more..Represented as days on the calendar, the total tax burden runs from January 1 to June 14. On June 15 — Tax Freedom Day — Canadians finally start keeping their own money..But Canadians should also be worried about the $86 billion in deficits the federal and provincial governments are forecasting this year. It means they will likely have to pay substantially more in tax in the coming years..For clarity, the study also calculates a Balanced Budget Tax Freedom Day. This is the day of the year when the average Canadian would finally begin working for themselves if the government paid for the year’s spending with taxes collected this year..It means if the government wasn’t using borrowed money to pay for spending, it would be taking even more of Canadians’ hard-earned wages. In 2022, the Balanced Budget Tax Freedom Day wouldn’t arrive until July 2 — another 17 days from now..“Tax Freedom Day helps put the total tax burden in perspective, and helps Canadians understand just how much of their money they pay in taxes every year,” Fuss said..“Canadians need to decide for themselves whether they are getting their money’s worth when it comes to how governments are spending their tax dollars.”.Tax Freedom Day for each province is different according to the extent of the provincially and locally levied tax burden.
