Working to pay the man

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If you're like most Canadians, you paid more in taxes last year than you did on housing, food and clothing.

The average Canadian family paid $37,058 in taxes, according to a new study by the Fraser Institute. That's more than food, housing and clothes combined – and accounts for 43 per cent of total income.

“Many Canadians will be surprised to learn that taxes –and not life’s basic necessities, including housing – is the biggest household expense,” said report co-author Charles Lammam.

Last year, the average Canadian family earned $85,883 and paid $37,058 in total taxes compared to $30,597 on necessities. The total tax bill includes visible and hidden taxes paid to federal, provincial and local governments including income, payroll, sales, property, carbon, health, fuel and alcohol taxes, and more.

The average Canadian family paid more than twice as much in taxes (43.1 per cent) as it did for housing (20.8 per cent). The basic necessities amounted to just 35.6 per cent of income.

This represents a marked shift since 1961, when the average Canadian family spent much less on taxes (33.5 per cent) than on food, clothing and housing (56.5 per cent).

Since 1961, the average tax bill has increased by a staggering 2,112 per cent, dwarfing increases in annual housing costs (1,480 per cent), clothing (732 per cent), and food (625 per cent).

“With 43 per cent of their income going to taxes, Canadians might ask whether they’re getting the best value for their tax dollars," said Lammam.