By Quinn Patrick, True North Wire
The average Canadian spent more on taxes last year than they did on basic amenities such as shelter, groceries and clothing combined, according to a new report.
“Taxes remain the largest household expense for families in Canada,” said study co-author Jake Fuss, director of fiscal studies at the Fraser Institute.
The average Canadian family earned an income of $109,235 in 2023 but were also forced to fork over $46,988 in total taxes, meaning that 43% of income is lost to taxation, higher than the 35.6% Canadians spend on basic necessities.
The report, Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2024 Edition, noted the dramatic spike in taxation over the past 60 years.
The average Canadian family only spent 33.5% of its income on taxes in 1961 and 56.5% on basic necessities.
However, taxes have rapidly outpaced any other single expenditure for the average Canadian family, with the average family tax bill having increased by 2,705% since 1961.
Annual housing costs increased over that time period as well, but remained 700% lower than the increase in taxation.