Taxes

According to an article in the Toronto Star, the Fraser Institute has found that Canadian families spend more on taxes than on food, clothing and housing combined.  (More thorough coverage of the results can be found in the Vancouver Province.)  According to the results, taxes have risen by almost 1600% in the last 45 years ( i.e. they are nearly 16 times what they were in 1961).

Personally, I find that the statistics are being used to incite an indignant response from the majority of readers.  The papers (and the think tank) are expecting people to be shocked at the increase and the proportion.

Consider first the rate of increase.  In 1961 the average annual family income was $5000, while in 2006 it was $63000.  So the income itself is nearly 13 times what it was.  Admittedly, the rate of taxation (in 1961 taxes were $1675, or 34% while in 2006 they were over $28000, or 45%) is higher, but the reader must question what costs the tax base are bearing now that they were not in 1961.

Public health care, public education, and increased infrastructure all contribute to the overall tax rate.  We live in a more urban Canada than those of the 1960s, with better, more universal public services. Yes, the taxpayers support this Canada, but ultimately it is the same Canada we are all so proud of.  The Canada that we tout proudly to our American friends as a place where everyone deserves to see a doctor is the same Canada that charges us more taxes to pay for that privilege.

Yes, as the lone working parent in my house I feel the yoke of taxation on my shoulder.  Every dollar of income tax, sales tax, CPP deduction is a dollar not in my child's RESP account, or a dollar I won't be able to spend on a new dress or toy or book for her.  However, I am aware that if one were to compare the overall cost of living in the United States or the United Kingdom, where fewer social programs exist, it is likely that the amount Canadians pay for taxes is less than the average combination of taxes and health care costs for many demographics, and knowing that she will always have proper medical attention makes the yoke a little lighter.

Information is power.  Being able to understand that information and not react to it unilaterally is an even greater power.

Comments

[heather]

Social programs are great and I have no problem paying my taxes if that is what they are going toward. That said, why is it that every year we pay more and see less in the way of these programs? Why is it that in Alberta there is a three month wait for a "free" MRI but if you are willing to shell out a few hundred bucks they can book you in next week? Back in the late 80s my husband had to pay around $80 in order to play highschool football ($50 of that was a deposit on equipment) but in order to play today in that very same community there is a cost of over $400 per student. The problem is not that we are paying too many taxes but that they are not being put in the right places.

[Laural]

I actually really had to think this one through. Usually I know exactly how I feel on somehting like this.
I see where you're coming from on this. But, at the same time, I don't agree.
I was raised (for 8 years) in the private system where if our school needed a new gym we fundraised for it - or got donors.
When I switched to public school - it seemed like there were a lot more handouts, though I think my perspective was a little off.
What I think you may not reflect in this is that in some cases affluent schools don't get as much. In some neighbourhoods that are very low income (i.e. regent park) you will see very upgraded things that have been given to compensate for the lack of funds. Take for instance the music programs. In some cases schools that have less money have way more instruments based on the notion that the low income families will not buy their children this stuff. (and I think this is great)
I think the people most affected by this are the middle class schools. The school I attended, for instance, was higher income, so donating a portable would not have been a huge thing.
But, I don't disagree with the Peel Board's policy. I think if someone is willing to donate it's great.
PS. I realize this comment sounds a little elitist and that's not how I intended it.