National Affairs: Go ahead and cheer for the home team
By Medicine Hat News Opinon on June 14, 2019.
Canadians have reached tax freedom day, according to calculations by the Fraser Institute. This means from Jan. 1 until now all that you have earned this year has been to pay government taxes. From now on what you earn is for your personal needs and enjoyment. The Fraser Institute, an independent, research organization with four offices across the country including one in Calgary, says the average Canadian family pays 44.7 per cent of its annual income on taxes based on a family income of $117,731. Here’s a breakdown: 15.2 per cent is income tax, 9.1 per cent payroll/health taxes, 6.9 per cent sales tax, 4 per cent property tax, 3.9 per cent profit tax, 2.2 on so called sin taxes, 1.4 per cent fuel/vehicle/carbon tax, and 2 per cent not categorized for a total of 44.7 per cent. We live in a society where we no longer are even aware of what taxes we are paying. Most people have their wages directly deposited to their bank accounts and very rarely are given a physical piece of paper showing what was deducted . Many of us do not even get a receipt for a purchase we make that would show the tax we paid. Some of us prefer not to know. We tend to think we have no control over it so choose not to think about it. That is a very slippery slope that could encourage politicians to continually increase taxes because we will not complain. Our opinion does actually matter and we do have a vote so it is important to know where your hard earned money is going. One tactic to avoid excessive spending includes calculating your hourly wage based on your net earnings. That is the amount of pay you actually receive after taxes and other deductions are made. You can then calculate your net hourly wage which is considerably less than your gross hourly wage. If you really want to buy an item of clothing or something for the home that will cost $100 it helps to know how many hours you will have to work to pay for it. It can make for sober second thought if you have to work an entire day or more to afford this item. You may still feel it is worthwhile – or not. Take a moment to work out how many hours you personally work to pay your taxes. When you like the way government leaders are spending your money you will feel good about it. It may also prompt you to speak up when your taxes are not being spent wisely – in your opinion. The Fraser Institute calculates tax freedom day to shine a light on the tax burden imposed by federal, provincial and local governments. Online there is additional information and a tool for you to calculate your own personal tax-freedom-day. https://www.fraserinstitute.org/file/tax-freedom-day-2019-infographicjpg (Gillian Slade is a News reporter. To comment on this and other editorials, go to https://www.medicinehatnews.com/opinions, email her at gslade@medicinehatnews.com or call her at 403-528-8635.) 17-16
