Parliament has risen for the summer break. Now, the public will experience the community politicking and glad-handing BBQ circuit. And, as of June 13th, Canadians have just started working for themselves. So far this year they have just worked for the government. For this year, June 13 was "Tax Freedom Day.”What that means is that if the average Canadian family had to pay its taxes up front, it would have worked until June 12 to pay their entire tax bill to all three levels of government: federal, provincial, and local.Tax Freedom Day is a device of the Canadian Taxpayers Federation to illustrate the enormous drag on Canadian incomes from taxation. Fraser's report, "Canadians Celebrate Tax Freedom Day on June 13, 2024," was written this years by Milagros Palacios, Jake Fuss, Nathaniel Li, and Grady Munro. It provides a helpful perspective on the worth of our present political leaders.in 2024 falls on June 12, one day later than in 2023. The change is due to the expectation that the total tax take by the Canadian governments will increase faster than Canadians' incomes... Yes, the government is taking more although thanks to variations in the provincially levied tax burden, it's not the same date in every province You'll do best in Friendly Manitoba, where Tax Freedom Day arrives May 26. Alberta beats the average, arriving June 6th. The later the date, the more taxes are taken from us... so try not to file in Saskatchewan. June 22nd. Ouch. Or in Newfoundland & Labrador... June 30th. Double-ouch. Canadians should also consider the tax implications of the $69.9 billion projected federal and provincial government deficits of 2024 because here's another measure. The calculated Balanced Budget Tax Freedom Day is the day average Canadians would start working for themselves if governments were obliged to cover current expenditures with current taxation. In 2024, the Balanced Budget Tax Freedom Day arrives on June 23!Most Canadians don’t need help understanding how much income tax they pay. A review of their income tax return makes it clear. The same applies to mandatory Employment Insurance (EI) and Canadian Pension Plan (CPP) premiums. But, it’s difficult for for people busy with work and family to understand the total amount of tax they pay. Some are not obvious. To calculate total sales taxes for example, would require tracking every purchase made in the year. Who does that?Further, Canadians must be aware of a class of taxes built into the price of goods and services. The most notable hidden taxes are import duties, fuel taxes, carbon taxes, and excise taxes on tobacco and alcohol. Often, Canadians are unaware that they pay their employer's portion of payroll taxes, such as EI and CPP premiums and other taxes levied on businesses. Although businesses pay these taxes directly initially, the cost of business taxation is ultimately passed onto the consumer, buried in the price. Then, the customer pays another tax as part of that purchase — tax upon tax. That is part of the explanation why the NDP philosophy of “tax the rich” is deceptive and false.The Fraser Institute calculates Tax Freedom Day to provide a comprehensive and easily understood indicator of the annual tax burden. However, Tax Freedom Day is not intended to measure how productive are the benefits Canadians receive from the levels of government in return for our taxes. Instead, it just looks at the price tag for what is provided.Tax Freedom Day does not reflect the quality of the product, how much each of us receives, or whether we get our money's worth. These are questions we must answer for ourselves. The federal political voting intention polls reflect the value of our money.When we pay so much, the issue of fairness of the system comes into question. The latest fiddle by the Liberals on "Capital Gains" and their version of fairness is debatable. I previously discussed their motives.What about fairness? In addition to the size of the average family’s tax bill, there is a concern about the tax system's fairness. The top 20% of income earners in Canada pay a higher share of all taxes than their share of all income earned. Specifically, the top 20% pays 54.2% of all taxes while earning 46.4% of all income. The more one earns, the more taxes one pays, and also at rising percentage rates.At the other end of the income spectrum, the bottom 20% pays 2.0% of all taxes despite earning 5.0% of all income. The overall distribution shows that Canada’s tax system is progressive and extracts proportionately more money from those on the higher income scale, penalizing hard work and economic success.40% of Canadians don't pay income taxes, meaning someone else is paying the bill. The top 20 percent pays 70 percent or more of all income taxes.The Canadian tax system is complex, and no single number can give a complete idea of who pays how much. Nevertheless, Tax Freedom Day is the most comprehensive and easily understood indicator of the average Canadian family's overall tax bill.In 2024, Canadians will celebrate Tax Freedom Day on June 13, one day later than last year.In my view, the NDP-Liberals spend too much, tax too much, and we all wind up owing too much. As Pierre Poilievre is fond of saying, Trudeau is not worth the cost.
Parliament has risen for the summer break. Now, the public will experience the community politicking and glad-handing BBQ circuit. And, as of June 13th, Canadians have just started working for themselves. So far this year they have just worked for the government. For this year, June 13 was "Tax Freedom Day.”What that means is that if the average Canadian family had to pay its taxes up front, it would have worked until June 12 to pay their entire tax bill to all three levels of government: federal, provincial, and local.Tax Freedom Day is a device of the Canadian Taxpayers Federation to illustrate the enormous drag on Canadian incomes from taxation. Fraser's report, "Canadians Celebrate Tax Freedom Day on June 13, 2024," was written this years by Milagros Palacios, Jake Fuss, Nathaniel Li, and Grady Munro. It provides a helpful perspective on the worth of our present political leaders.in 2024 falls on June 12, one day later than in 2023. The change is due to the expectation that the total tax take by the Canadian governments will increase faster than Canadians' incomes... Yes, the government is taking more although thanks to variations in the provincially levied tax burden, it's not the same date in every province You'll do best in Friendly Manitoba, where Tax Freedom Day arrives May 26. Alberta beats the average, arriving June 6th. The later the date, the more taxes are taken from us... so try not to file in Saskatchewan. June 22nd. Ouch. Or in Newfoundland & Labrador... June 30th. Double-ouch. Canadians should also consider the tax implications of the $69.9 billion projected federal and provincial government deficits of 2024 because here's another measure. The calculated Balanced Budget Tax Freedom Day is the day average Canadians would start working for themselves if governments were obliged to cover current expenditures with current taxation. In 2024, the Balanced Budget Tax Freedom Day arrives on June 23!Most Canadians don’t need help understanding how much income tax they pay. A review of their income tax return makes it clear. The same applies to mandatory Employment Insurance (EI) and Canadian Pension Plan (CPP) premiums. But, it’s difficult for for people busy with work and family to understand the total amount of tax they pay. Some are not obvious. To calculate total sales taxes for example, would require tracking every purchase made in the year. Who does that?Further, Canadians must be aware of a class of taxes built into the price of goods and services. The most notable hidden taxes are import duties, fuel taxes, carbon taxes, and excise taxes on tobacco and alcohol. Often, Canadians are unaware that they pay their employer's portion of payroll taxes, such as EI and CPP premiums and other taxes levied on businesses. Although businesses pay these taxes directly initially, the cost of business taxation is ultimately passed onto the consumer, buried in the price. Then, the customer pays another tax as part of that purchase — tax upon tax. That is part of the explanation why the NDP philosophy of “tax the rich” is deceptive and false.The Fraser Institute calculates Tax Freedom Day to provide a comprehensive and easily understood indicator of the annual tax burden. However, Tax Freedom Day is not intended to measure how productive are the benefits Canadians receive from the levels of government in return for our taxes. Instead, it just looks at the price tag for what is provided.Tax Freedom Day does not reflect the quality of the product, how much each of us receives, or whether we get our money's worth. These are questions we must answer for ourselves. The federal political voting intention polls reflect the value of our money.When we pay so much, the issue of fairness of the system comes into question. The latest fiddle by the Liberals on "Capital Gains" and their version of fairness is debatable. I previously discussed their motives.What about fairness? In addition to the size of the average family’s tax bill, there is a concern about the tax system's fairness. The top 20% of income earners in Canada pay a higher share of all taxes than their share of all income earned. Specifically, the top 20% pays 54.2% of all taxes while earning 46.4% of all income. The more one earns, the more taxes one pays, and also at rising percentage rates.At the other end of the income spectrum, the bottom 20% pays 2.0% of all taxes despite earning 5.0% of all income. The overall distribution shows that Canada’s tax system is progressive and extracts proportionately more money from those on the higher income scale, penalizing hard work and economic success.40% of Canadians don't pay income taxes, meaning someone else is paying the bill. The top 20 percent pays 70 percent or more of all income taxes.The Canadian tax system is complex, and no single number can give a complete idea of who pays how much. Nevertheless, Tax Freedom Day is the most comprehensive and easily understood indicator of the average Canadian family's overall tax bill.In 2024, Canadians will celebrate Tax Freedom Day on June 13, one day later than last year.In my view, the NDP-Liberals spend too much, tax too much, and we all wind up owing too much. As Pierre Poilievre is fond of saying, Trudeau is not worth the cost.
