From: canada.revenue.agency@canada.com   
      
   Average Canadian family spending more on taxes than basic necessities, Fraser   
   Institute says : CRA SOTW    
      
   Victor Ferreira | August 27, 2015 6:57 AM ET   
      
   TORONTO -- The average Canadian family continues to spend more on taxes than   
   they do on food, shelter and clothing combined, according to the Fraser   
   Institute's annual study of taxation in Canada.   
      
   The think-tank's Canadian Consumer Tax Index study released Thursday says a   
   Canadian family earning $79,010 in 2014 would have spent 42.1 per cent of   
   income on tax bills compared to 21 per cent of income on shelter, 11 per cent   
   on food, and five per cent    
   on clothing.   
      
   Although the 2014 numbers can still change as more data becomes available, the   
   percentage of income used to pay taxes has continuously risen since 2008 when   
   40.9 per cent of income was spent.   
      
   Charles Lammam, co-author of the  study, said the consistent tax increases   
   mean Canadians continue to have less money to use in other avenues.   
      
   "As the tax bill grows, there is less money available for families to spend on   
   things they want to spend on, to save for retirement or their kids education,   
   or even to pay down their household debt," Lammam said.   
      
   A key aspect of the Fraser Institute study is the comparison of current taxes   
   to those in 1961. The study shows average families in 1961 earned an average   
   of $5,000 and paid taxes worth $1,675. The average family's tax bill rose by   
   1,886 per cent in that    
   time, while food prices rose by 561 per cent and clothing by 819 per cent. The   
   cost of shelter was the basic necessity that came closest to matching the   
   increase seen in taxes, having risen by 1,366 per cent. Average annual income   
   also increased at a    
   slower rate than taxes, rising by 1,480 per cent.   
      
   The Fraser Institute determined taxes rose 149.2 per cent after inflation in   
   that time period, as average families in 1961 would have only paid $13,353 in   
   present day dollars.   
      
   The comparison marks a significant shift in how family income was divided, the   
   study shows, as the average family only used 33.5 per cent of income on taxes   
   and was able to spend 56.5 per cent of it on the basic necessities. Ten per   
   cent was devoted to    
   other spending.   
      
   Lammam said it's important for Canadians to know the 2014 tax rate would be   
   even higher -- 44.2 per cent -- when government overspending in 2014 is taken   
   into consideration.   
      
   "They were spending more than the total revenue brought in and the difference   
   has been borrowed. Essentially this difference between taxes and spending is a   
   deferred tax."   
      
   Even without considering the upcoming federal election, Lammam said Canadians   
   should use the information to determine whether they're getting value for the   
   amount being paid.   
      
   "Independent of what's happening politically, I think it's important for   
   Canadians to be armed with the information that we provided. Armed with that   
   knowledge, Canadian families can then decipher whether they're getting good,   
   great, or not so great    
   value for what they're paying."   
      
   National Post   
      
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