Fraser Institute
Honest discussion about taxes must include bill Canadian families pay
![](https://www.todayville.com/wp-content/uploads/2024/08/tvrd-fi-family-four-parents-children-image-2024-08-20-1.jpg)
From the Fraser Institute
By Jake Fuss
Every year at the Fraser Institute, we calculate the total tax bill—which includes income taxes, property taxes, sales taxes, fuel taxes, etc.—for the average Canadian family. This year we found the average family paid 43.0 per cent of its annual income in taxes in 2023—more than it spent on basic necessities such as food, clothing and housing combined, and significantly higher than the 33.5 per cent it paid in 1961.
Put differently, the average family’s tax bill has increased 2,705 per cent since 1961—or 180.3 per cent after adjusting for inflation.
And yet, in a recent column, Star contributing columnist Linda McQuaig said we’re “distorting the public debate over taxes” by publishing these facts while stating that the effective tax rate the average family pays has only “increased by 28 per cent since 1961.” Presumably, she arrived at her 28 per cent figure by calculating the change in the share of income going to taxes from 33.5 per cent (in 1961) to 43.0 per cent (in 2023). And yes, that’s one way to measure tax increases. But again, the inflation-adjusted dollar value—what the average family actually pays—of the tax bill has increased by 180.3 per cent. That’s not distortion, that’s explaining the increase in terms everyone can understand.
Of course, these aren’t simply academic points. Taxes, particularly at a time when families are struggling with the cost of living, have real-world effects. According to a recent poll, 74 per cent of respondents feel the average family is overtaxed, and 80 per cent believe the average family should pay 40 per cent or less of its income in total taxes.
Another important question is whether families get value for the taxes they pay. Polling shows nearly half (44 per cent) of Canadians feel they receive “poor” or “very poor” value from government services while only 16 per cent believe they receive “good” or “great” value. This should be no surprise. Health-care wait times are at record highs. Student test scores are declining. And Canada routinely fails to meet our NATO defence spending commitments.
Meanwhile, governments waste taxpayer dollars on pet projects such as a federal infrastructure bank, which, despite a budget of at least $13.2 billion, has delivered only two relatively minor projects in seven years. Or handouts to new electric vehicle (EV) owners that cost taxpayers—including Canadians unable to afford EVs—more than $587 million annually.
Can we really say governments are using our money wisely?
Unfortunately, many governments are doubling down. Municipalities such as Vancouver and Toronto raised property taxes by at least 7.5 per cent this year. Toronto city council has even floated the idea of a municipal sales tax. It’s hard to argue that you want to make life more affordable for families by leaving less money in their pockets.
And of course, the Trudeau government recently raised taxes on capital gains. But despite claims to the contrary, this tax hike won’t only affect wealthy investors. According to an analysis by economist Jack Mintz, 50 per cent of taxpayers who claim more than $250,000 of capital gains in a year earned less than $117,592 in normal annual income from 2011 to 2021. These include Canadians with modest annual incomes who own businesses, second homes or stocks, and who may choose to sell those assets once or infrequently in their lifetimes (when they retire, for example).
Finally, more tax hikes are likely on the horizon. The federal government and eight provinces are currently running budget deficits, meaning they’re not taxing enough to keep up with spending. Deficits produce debt, which will be passed onto future generations of Canadians in the form of higher taxes.
If governments across Canada want to leave more money in the pockets of Canadians, they should reduce taxes. And everyone should want an honest discussion about taxes in Canada, based on facts, not distortions.
Author:
Fraser Institute
Here’s your annual bill for public health care
![](https://www.todayville.com/wp-content/uploads/2024/09/tvrd-fi-man-bill-economy-taxpayer-debt-image-2024-09-11.jpg)
From the Fraser Institute
Notably, the amount paid by the average family has increased by 239.7 per cent since 1997 (the first year of available data).
According to a recent survey by Statistics Canada, almost half of Canadians said that rising prices are affecting their ability to meet day-to-day expenses. At the same time, Canadians are increasingly aware of their significant tax burden, with 74 per cent feeling the average family is overtaxed. This is not surprising given the average Canadian family spends more on taxes than food, clothing and shelter combined.
However, one contributor to this growing tax burden remains hidden—the price we pay public health care. You read that right. Public health care is not free—but it’s very difficult to figure out exactly how much we pay for it on an individual or family basis.
This is primarily because our public health-care system is funded through general government revenues. In other words, there’s no dedicated tax that fully funds the system. Our income taxes, sales taxes, business taxes and other taxes get poured into a fiscal vat, from which governments take a generous portion for health care.
While it’s easy enough to gauge total health-care spending by governments ($225.1 billion) or how much was spent per Canadian ($5,614), it remains nearly impossible for Canadian families of different sizes and incomes to calculate how much they contribute towards that vast amount.
But a recent study helps us get a general idea. According to the study, an average family of four (two parents and two children) with an average income of $176,266 will pay an estimated $17,713 (in taxes) for public health care this year. Single Canadians, with an average income of $55,925, will pay $5,629. Of course, these amounts vary by income with the poorest 10 per cent of income earners paying $639 while the top 10 per cent pay $47,071.
Notably, the amount paid by the average family has increased by 239.7 per cent since 1997 (the first year of available data). This increase is 3.1 times greater than the rate of inflation, 2.2 times greater than food cost increases, and 1.6 times greater than housing costs increases. And crucially, the cost of public health care for the average family has increased 1.7 times faster than their average incomes grew during the same period.
These figures are not only important for families who are interested in how their tax dollars are spent, they are one very important side of the equation when trying to understand whether we receive good value for our health-care dollars. Moreover, as politicians continue to promise ever increasing health-care spending to fix our crumbling system, it’s crucial for Canadians to understand exactly how that spending impacts their wallets.
One thing is clear. With nearly an $18,000 price tag for the average family of four, Canada’s public health-care system is anything but free.
Author:
Economy
Energy transition will be much longer and more arduous than they’re telling you
![](https://www.todayville.com/wp-content/uploads/2024/09/tvrd-fi-energy-oil-gas-carbon-image-2024-09-09.jpg)
From the Fraser Institute
While many Canadian politicians and activists continue to trumpet the “energy transition” and conjure visions of a low-carbon future that supposedly lurks just around the corner, along comes Natural Resources Canada with its latest Energy Fact Book. A careful review of the publication pours cold water on any notion of a rapid shift to a fundamentally different energy system, one that features a much smaller role for the fossil fuels that now supply the vast majority of the energy used by Canadians.
The book contains a wealth of information on Canada’s large and notably diverse energy sector, covering production, consumption trends, investment, and the environmental impact of energy production and use. Separately, Natural Resources Canada also publishes “energy profiles” for the individual provinces and territories that provide further insight into energy production and consumption patterns across the country.
Starting with energy production (and considering all sources of energy, including uranium), crude oil accounts for about 45 per cent of Canadian energy output, measured in petajoules. Natural gas and natural gas liquids comprise another 32 per cent, with uranium chipping in 11 per cent of primary energy production. Smaller shares come from coal (5 per cent), hydroelectricity (5 per cent) and “other” renewables (3 per cent).
The statistics on energy output confirm that fossil fuels dominate the mix of energy sources produced in Canada. There’s little reason to believe this will change in a significant way in the near term.
Turning to energy consumption, a review of the most recent information leads to a broadly similar conclusion.
Based on Statistics Canada’s latest data, industry, collectively, is responsible for about 35 per cent of final end-use energy demand; this category includes manufacturing, natural resource extraction and processing, and construction. Transportation is the second-largest consumer of energy (29 per cent of final demand), followed by the residential (16 per cent) and commercial sectors (14 per cent).
What about the various sources of energy Canadians depend on for their comfort and well-being and to enable industrial and other business activity? Refined petroleum products rank first, providing about two-fifths of all energy consumed. Natural gas is second (35-36 per cent). Electricity comprises just 16-17 per cent of the energy used in Canada. Overall, fossil fuels still meet more than three quarters of Canadians’ requirements for primary energy.
Some may be surprised that electricity constitutes less than one-fifth of the energy used in Canada. A principal strategy of governments aspiring to slash greenhouse gas emissions is to redirect energy demand to electricity and away from oil, natural gas and other carbon-based energy sources. That makes sense, particularly since Canada’s existing electricity grid is about 80 per cent carbon-free. But a “big switch” to electricity won’t be easy. Consider that, over the first two decades of the millennium, Canadian natural gas consumption jumped by 34 per cent while electricity demand rose by 12 per cent. This underscores the resiliency of household and business demand for reliable affordable energy—of which natural gas is the best example.
Raising electricity’s share of total energy consumption will necessitate an enormous expansion across all segments of the Canadian electricity sector, encompassing not only the development of far more generation capacity but also the construction of additional transmission networks to deliver electric energy to end-users. Industry experts talk of boosting the amount of electricity produced in Canada by up to three times within two decades—a herculean task, assuming it’s even possible.
And, in line with the “net zero” goals espoused by many governments, virtually all of new electricity presumably must come from carbon-free sources (e.g., hydropower, other renewables, biomass, nuclear). There’s also the challenge of replacing the remaining carbon-based electricity still produced in Canada with carbon-free alternatives, as mandated by the Clean Electricity Regulations (CER) recently adopted by the Trudeau government.
Suffice to say the transition away from fossil fuels as the predominant source of energy consumed in Canada will be a lengthy and arduous journey and is sure to encounter more and bigger obstacles than most of Canada’s political class understands or cares to acknowledge.
Author
-
Energy2 days ago
Kamala Harris is still for banning fracking—as is everyone who advocates the net-zero agenda
-
National2 days ago
Liberals Welcome Mark Carney Into Their Elite Circle, Because Another Globalist Is Just What Canada Needs
-
Alberta1 day ago
Trudeau-appointed judge sentences Freedom Convoy-inspired protesters to 6 years in prison
-
Brownstone Institute2 days ago
Trust in Doctors and Hospitals Plummets
-
Alberta2 days ago
Alberta announces second waste-to-energy facility near Edmonton to join Central Alberta plant at Innisfail
-
Agriculture1 day ago
Canadian pandemic bill wants to regulate meat production, develop contract tracing
-
Alberta1 day ago
Alberta Conservatives looking to pass resolution protecting ‘female spaces’ from male intrusion
-
Daily Caller1 day ago
‘Spoiled Brats’: Greenpeace Co-Founder Supports Pipeline Tycoon’s Campaign To Punish His Old Group