A new tax index by the Fraser Institute found that tax bills were the fastest growing expenditures for Canadians in the last few decades, even surpassing the rising cost of housing.
According to the Canadian Consumer Tax Index 2023 edition, taxes grew by 2,778% since 1961.
The rising cost of taxes surpassed other expenditures including money spent on shelter which grew by 1,880% over the same time period.
Canadians have been paying 870% more on food and 654% more on clothing since 1961.
According to the Fraser Institute, the average Canadian family paid more on taxes (45.3%) when compared to necessities of life like clothing, food and housing (35.6%).
“Taxes remain the largest household expense for families in Canada,” said the Fraser Institute’s Director of Fiscal Studies Jake Fuss.
“Considering the sheer amount of income that goes towards taxes in this country, Canadians may question whether or not we’re getting good value for our money.”
Prime Minister Justin Trudeau has recently faced calls to lower taxes and introduce cheaper financing options to help build more homes as Canada faces a housing crisis.
Earlier this month, the National Housing Accord demanded that the Liberal government pursue an “industrial strategy” to tackle the issue.
“Millions of people — particularly those with the lowest incomes — are facing rapidly rising housing costs, driven significantly by an extreme lack of supply of the right types of rental housing,” reads the accord.
One of the proposed solutions was for Canada to lower taxes by amending the tax code, which would make it easier to build rental housing, according to the accord.
Additionally, the accord calls on the government to eliminate sales taxes on capital investments in housing projects like apartment buildings.
In the last year alone, the Trudeau government has hiked taxes on Canadians a number of times.
The Liberals have increased the federal carbon tax, imposed a second carbon tax on fuel and hiked taxes on alcohol. Additionally, taxes on employment insurance were also increased, as well as further taxes on the Canada Pension Plan.
