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What is Tax Freedom Day?
Londoners and all Canadians pay different taxes
to each level of government. As a result, most people don’t
realize how much they pay in total taxes every year. That is
why the Fraser Institute created Tax Freedom Day, to
demonstrate how the overall tax burden on Canadians is growing or
shrinking.
Every year the Fraser Institute adds up what the
average Canadian pays in total taxes, and then calculates how many
working-days it takes someone with an average salary to pay all
those taxes. Tax Freedom Day is the date by which, if
you started working in January, you would have made enough money to
pay your tax bill. It’s the day you stop working for
government and start working for yourself.
Back in the 1960’s, the average Canadian had
earned enough by May 3rd to pay all their taxes. By
1998, taxes had become so high that Canadians had to work until July
5th to cover the cost of Liberal Government. Since
taking office in 2006, our Conservative Government has cut the GST,
provided income tax relief to all Canadians, enhanced the Child Tax
Credit for families, and increased the Age Credit to allow seniors
to save on their tax bill. These measures and others, have
helped to push back Tax Freedom Day.
This year the Fraser
Institute has calculated that Tax Freedom Day is June 5th.
That is 14 days earlier than when the Conservative Government was
elected, and a month earlier than it was in 1998! That means
you spend more time earning paycheques for you and your family, and
fewer days working for government. Check out the Fraser
Institute’s Tax Calculator online at
www.fraserinstitute.org/tools
According to the Fraser Institute’s website, the
reason Tax Freedom Day has arrived on June 5th, three days
later than in 2009, is primarily the result of Canada’s success in
weathering the global recession and leading the recovery.
“When the economy recovers and incomes increase,
a family’s tax burden tends to increase to a greater extent. That is
mainly because household consumption increases, which results in an
increase in the amount of sales and other consumption taxes paid by
Canadian families” explains the Institute.
To find out more about the changes we have made
to the tax code, please visit
www.edholdermp.ca/taxinfo
and see how you are saving money.
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