Income taxes make up less than a third of total annual taxes: report
So, yesterday was tax deadline day, and you’re all done with duties for the year, yeah?
Well, perhaps not so fast. While income taxes, what we presume make up the bulk of taxes we pay each year, have come and gone, a new report shows the lion’s share of our annual tax pain is still to come.
In fact, according to the Fraser Institute, more than 70 per cent of the average Canadian family’s tax burden comes from sources other than income taxes.
Where else are we getting taxed most? Click on to find out.
By the Fraser Institute’s Tax Simulator, the average Canadian family’s income rolls in at an average clip of $74,233 each year. It’s a modest benchmark, but gives us a way to round out just where our tax dollars go, nonetheless.
According to Fraser’s figures, just under 30 per cent (29.7 per cent, or $9,137 using the above income) of the average Canadian family’s income goes to income taxes, the largest chunk but less than even a third of what we pay in total taxes each year.
--Social security, medical and hospital taxes (20.6 per cent)
--Sales taxes (15.4 per cent)
--Property taxes (11.4 per cent)
--Profits tax (10.2 per cent)
--Liquor, tobacco and other excise taxes (5.6 per cent)
--Other, natural resources and import duties (4.6 per cent)
--Auto, fuel and motor vehicle license taxes (2.5 per cent)
Add it all up and 41.5 per cent of the average Canadian family’s income goes to taxes each year. Using the above $74,233 income figure, that’s $30,792.
When you consider all your tax burdens, does it add up to more – or less – than 41.5 per cent of your annual income?
By Jason Buckland, MSN Money