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Canada observes Tax Freedom Day: government took everything until June 28
By ALLAN SWIFT
MONTREAL (CP) - Canadians had to work from Jan. 1 until Thursday night to pay all the taxes due for 2002, according to the annual Tax Freedom Day calculation by the Fraser Institute.
Starting Friday, average Canadians can keep for their own use all the money they earn for the rest of the year, says the free-market think-tank, which promotes Tax Freedom Day as a representation of government's total take of the overall economy. This year's taxes - including federal, provincial and municipal income taxes, property taxes, sales taxes, health taxes, import duties, licence fees, and taxes on fuel, tobacco and alcohol - took two more days of work than last year's.
Please see below for facts on Tax Freedom Day
The business-backed institute said income taxes went down for most people but they had to pay more taxes and fees on items like tobacco, medical care and pension contributions. As well, a new security fee of $24 per return flight was imposed on airline travel starting in April.
The tax-free day falls earliest in Newfoundland, on May 31, partly because the province benefits most from federal tax transfers which reduce personal income taxes.
It falls the latest for residents of Quebec, on July 3.
The survey says the average Canadian family will have income of $70,868 this year, on which it pays $34,473 in taxes and fees - $761 more than in 2001.
Jason Clemens, the institute's director of fiscal studies, cautioned that the annual calculation is not intended to measure the benefits Canadians receive in return for their taxes.
"It looks at the price that is paid for a product - government," he said. "It is not a reflection of the quality of the product, how much of it each of us receives, or whether we get our money's worth."
Bob Baldwin, director of social and economic policy for the Canadian Labour Congress, challenged the institute's promotion of private-sector solutions to reduce the cost of government.
Baldwin said social indicators like life expectancy and income equality declined during the 1980s and 1990s when governments were privatizing and contracting out services, compared with the 1960s and 1970s.
"This era of liberalization which the Fraser Institute wants to applaud is not delivering a lot of benefit for working people in particular," Baldwin said in an interview, adding that the CLC wants a society in which "taxes would be higher, but so would social services and public income security."
Walter Robinson, federal director of the Canadian Taxpayers Federation, said Canadians pay far more taxes than Americans and Britons.
"Canadians this year worked 178 days to feed the big tax-collection monster, and this monster is very hungry, chewing up a whopping 48.6 per cent of our average annual household income," said Robinson, whose group lobbies for lower taxes and smaller government.
Friday "we start work for ourselves. Meanwhile, our American friends celebrated Tax Freedom Day on April 27 and our British cousins celebrated their TFD on June 5."
In 1961, the earliest year for which the calculation was made, Canada's Tax Freedom Day was May 3.
The latest Tax Freedom Day was in 2000, when it fell on July 3.
Tax Freedom Day
in Canada's provinces this year and 10 years ago, as calculated by the Fraser Institute:
Newfoundland: May 31. In 1992, May 14.
P.E.I.: June 5. In 1992, May 11.
Nova Scotia: June 17. In 1992, May 26.
New Brunswick: June 8. In 1992, May 21.
Quebec: July 3. In 1992, June 7.
Ontario: June 27. In 1992, June 8.
Manitoba: June 25. In 1992, June 2.
Saskatchewan: June 22. In 1992, June 5.
Alberta: June 21. In 1992, June 6.
B.C.: June 29. In 1992, June 13.
All of Canada: June 28. In 1992, June 8.
By ALLAN SWIFT
MONTREAL (CP) - Canadians had to work from Jan. 1 until Thursday night to pay all the taxes due for 2002, according to the annual Tax Freedom Day calculation by the Fraser Institute.
Starting Friday, average Canadians can keep for their own use all the money they earn for the rest of the year, says the free-market think-tank, which promotes Tax Freedom Day as a representation of government's total take of the overall economy. This year's taxes - including federal, provincial and municipal income taxes, property taxes, sales taxes, health taxes, import duties, licence fees, and taxes on fuel, tobacco and alcohol - took two more days of work than last year's.
Please see below for facts on Tax Freedom Day
The business-backed institute said income taxes went down for most people but they had to pay more taxes and fees on items like tobacco, medical care and pension contributions. As well, a new security fee of $24 per return flight was imposed on airline travel starting in April.
The tax-free day falls earliest in Newfoundland, on May 31, partly because the province benefits most from federal tax transfers which reduce personal income taxes.
It falls the latest for residents of Quebec, on July 3.
The survey says the average Canadian family will have income of $70,868 this year, on which it pays $34,473 in taxes and fees - $761 more than in 2001.
Jason Clemens, the institute's director of fiscal studies, cautioned that the annual calculation is not intended to measure the benefits Canadians receive in return for their taxes.
"It looks at the price that is paid for a product - government," he said. "It is not a reflection of the quality of the product, how much of it each of us receives, or whether we get our money's worth."
Bob Baldwin, director of social and economic policy for the Canadian Labour Congress, challenged the institute's promotion of private-sector solutions to reduce the cost of government.
Baldwin said social indicators like life expectancy and income equality declined during the 1980s and 1990s when governments were privatizing and contracting out services, compared with the 1960s and 1970s.
"This era of liberalization which the Fraser Institute wants to applaud is not delivering a lot of benefit for working people in particular," Baldwin said in an interview, adding that the CLC wants a society in which "taxes would be higher, but so would social services and public income security."
Walter Robinson, federal director of the Canadian Taxpayers Federation, said Canadians pay far more taxes than Americans and Britons.
"Canadians this year worked 178 days to feed the big tax-collection monster, and this monster is very hungry, chewing up a whopping 48.6 per cent of our average annual household income," said Robinson, whose group lobbies for lower taxes and smaller government.
Friday "we start work for ourselves. Meanwhile, our American friends celebrated Tax Freedom Day on April 27 and our British cousins celebrated their TFD on June 5."
In 1961, the earliest year for which the calculation was made, Canada's Tax Freedom Day was May 3.
The latest Tax Freedom Day was in 2000, when it fell on July 3.
Tax Freedom Day
in Canada's provinces this year and 10 years ago, as calculated by the Fraser Institute:
Newfoundland: May 31. In 1992, May 14.
P.E.I.: June 5. In 1992, May 11.
Nova Scotia: June 17. In 1992, May 26.
New Brunswick: June 8. In 1992, May 21.
Quebec: July 3. In 1992, June 7.
Ontario: June 27. In 1992, June 8.
Manitoba: June 25. In 1992, June 2.
Saskatchewan: June 22. In 1992, June 5.
Alberta: June 21. In 1992, June 6.
B.C.: June 29. In 1992, June 13.
All of Canada: June 28. In 1992, June 8.
