Today is the day that Canadians start earning money for themselves, having worked the year up to this point to pay for our various levels of government:
Tax Freedom Day, the day Canadian families have made enough money to pay off the total tax bill levied by all levels of government, falls on Monday, June 10 this year, according to the Fraser Institute’s annual calculations.
Tax Freedom Day arrives two days later than 2012 when it fell on June 8.
“Canadians are waiting an extra two days to celebrate Tax Freedom Day partly because governments across the country continue to increase taxes in an effort to make up for their overspending and deficits,” said Charles Lammam, Fraser Institute associate director of tax and budget policy and co-author of Canadians Celebrate Tax Freedom Day on June 10, 2013.
“What’s worse, some governments are relying on the most damaging types of tax increases including higher tax rates on personal income and investment, which will ultimately discourage economic growth.”
Among the tax increases announced so far are hikes to BC’s corporate income tax and top personal tax rate as well as its Medical Services Plan premiums; a new top income tax bracket in Quebec; increases to Manitoba’s Provincial Sales Tax and financial corporate capital tax; increases to New Brunswick’s corporate income tax and all four personal income tax rates; increased taxes on small businesses in PEI; cancellation of a corporate tax decrease in Saskatchewan; and increased Employment Insurance premiums federally.
Tax Freedom Day also comes later this year because Canada’s progressive tax system imposes a higher tax burden on families as their incomes increase.
You can use the Fraser Institute’s Personal Tax Freedom Day calculator to find your own tax freedom day here.
