43% of Canadians’ income goes to taxes
A new study by the Fraser Institute found that the average Canadian family currently spends more money on taxes than on food, housing and clothing combined. Jake Fass, an economist at the Fraser Institute and co-compiler of the 2020 Canadian Consumer Tax Index, believes that “taxes remain the largest single expense item in Canada.” In 2019, the average Canadian household earned an income of $91,535. At the same time, it paid $38,963 in taxes, almost 5,000 more compared with $33,178 spent on basic necessities such as housing (including rent and mortgage payments), food and clothing combined. In other words, the average Canadian family spends 42.6% of their income on taxes, compared with 36.2% on basic necessities.
#taxes, #newcomers