FRASER INSTITUTE: Governments impose a litany of taxes - some visible, some hidden - making it very difficult for us to get a clear sense of all the taxes we pay. That’s why the Fraser Institute calculates Tax Freedom Day
According
to the Fraser Institute, tomorrow is Tax Freedom Day ... so, happy
almost Tax Freedom Day!
If you paid all your taxes up front, you’d give government every dollar you earned up to tomorrow (June 14th), Tax Freedom Day. From today onward, you’re finally working for yourself and your family.
Because governments impose a litany of taxes—some visible, some hidden—it’s very difficult for Canadians to get a clear sense of all the taxes they pay. That’s why every year the Fraser Institute calculates Tax Freedom Day, a handy measure of the total tax burden imposed on Canadian families by federal, provincial and local governments.
If you paid all your taxes up front, you’d give government every dollar you earned up to tomorrow (June 14th), Tax Freedom Day. From today onward, you’re finally working for yourself and your family.
Because governments impose a litany of taxes—some visible, some hidden—it’s very difficult for Canadians to get a clear sense of all the taxes they pay. That’s why every year the Fraser Institute calculates Tax Freedom Day, a handy measure of the total tax burden imposed on Canadian families by federal, provincial and local governments.
To learn more about Tax Freedom Day, check out the Fraser Institutes video, infographics and maybe even take a moment to calculate your own personal Tax Freedom Day on our website.
Here are just a few things you may wish to take note of:
- In
2019, the average Canadian family will earn $117,731 in income and pay an
estimated $52,675 in total taxes (44.7%).
- If the
average Canadian family had to pay its taxes up front, it would have
worked until June 13 to pay the $52,675 total tax bill imposed on it by
all three levels of government (federal, provincial, and local).
- This
means that Tax Freedom Day, the day in the year when the average Canadian
family has earned enough money to pay the taxes imposed on it, falls on
June 14.
- Tax
Freedom Day in 2019 comes one day earlier than in 2018, when it fell on
June 15. This decline is due to the expectation that the incomes of
Canadians will increase more than the total tax revenue forecasted by
Canadian governments.
- Tax
Freedom Day for each province varies according to the extent of the
provincially levied tax burden. The earliest provincial Tax Freedom Day
falls on May 27 in Alberta, while the latest falls on July 2 in
Newfoundland & Labrador.
- If
governments increased taxes to balance their budgets instead of financing
expenditures with deficits (which are deferred taxes), Tax Freedom Day
would arrive 8 days later. Put differently, the Balanced-Budget Tax
Freedom Day arrives on June 22.
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