Canadians Moving To Panama Continue To Leave Due To High Taxes

2024-08-04 11:20:36

(MENAFN- Newsroom Panama) A new study finds that the average Canadian family spends most of its income on taxes instead of basic necessities. The Fraser Institute released the 2024 edition of the Canadian Consumer Tax Index revealing just how much households spent on taxes in 2023.
The report found that the average family spent 43% of its income on taxes last year, more than the 35.6% spent on basic needs like housing, food and clothing combined.

“Taxes remain the largest household expense for families in Canada,” said Jake Fuss, director of Fiscal Studies at the public policy think-tank and co-author of the study.
According to the report, the average household earned an income of $109,235 and paid, in total, taxes equaling $46,988.
The Fraser Institute says this is a dramatic shift since 1961, when the average family spent less of its income on duties (33.5%) than the basic necessities (56.5%).“Taxes have grown much more rapidly than any other single expenditure for the average Canadian family,” reads the report.

However, it's important to note that the tax-funded federal programs and social services that exist today may not have existed back then. One example is the Canada Health Act, which was passed in 1984 and provides Canadians with free healthcare.
The Fraser Institute also attributes this spike in spending to“visible and hidden” costs like income, payroll, sales, property,
carbon, health, fuel, and alcohol taxes.
The report added that since 1961, the average Canadian household's total tax bill has increased nominally by 2,705%, dwarfing increases in annual housing costs (2,006%), clothing (478%) and food (901%).“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,” said Fuss.
Basic necessities aren't getting any cheaper either, as Canadians continue to grapple with rising food costs
and
housing affordability.

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