Tax Freedom Day arrives one day later in 2017 as more income goes to taxes
by Canadian Manufacturing.com Staff
This year, 43.4 per cent of Canadians' income will go toward taxes, according to the Fraser Institute's annual calculations
Canadian workers start earning for themselves June 9, on average. Though workers in Quebec and Newfoundland and Labrador will have to wait longer
VANCOUVER—More than five months into the year, Canadians have begun working for themselves.
This year’s Tax Freedom Day—or the point on the calendar when the typical Canadian family has paid off their average annual tax obligations—falls on June 9, according to the Fraser Institute’s annual calculations.
The right-leaning think tank uses the measurement to show the toll federal, provincial and municipal levies would take on workers if they paid all their taxes upfront. This year, that toll is 43.4 per cent of a family’s annual income—or the first 159 days of the year.
“It’s difficult for average Canadians to add up all the taxes they pay in a year because the different levels of government levy such a wide range of taxes, and that’s why we do these calculations—to give Canadians a better understanding of exactly how much they pay to government,” said Charles Lammam, director of fiscal studies at the Fraser Institute.
The Fraser Institute says the June 9 break-even point is a day later than last year as a result of slightly more income going toward taxes in 2017. The calculations include a long list of government levies—from income and payroll taxes to carbon and sin taxes.
While June 9 marks the average date, it’s contingent on what part of the country you’re in.
Tax Freedom Day for workers in Alberta arrives earliest, on May 21, followed by Saskatchewan on May 29. Prince Edward Island, British Columbia, Manitoba, Ontario, New Brunswick and Nova Scotia follow in early June. Quebec and Newfoundland and Labrador, meanwhile, bring up the rear, with workers becoming free of their tax burden on June 21 and June 25 respectively.
