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Tax Freedom Day later in 2015 : CRA SOTW
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Alan Baggett
Jun 18, 2015, 1:41:50 AM6/18/15
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Tax Freedom Day later in 2015 : CRA SOTW
Tax Freedom Day -- when average Canadians start earning income for themselves and not the taxman -- fell on Wednesday this year -- one day later than in 2014 -- according to the Fraser Institute's annual and controversial tax burden calculation.
In Saskatchewan, Tax Freedom Day arrived four days earlier on June 6, but two days later than in 2014. But if you exclude natural resource levies, like royalties, Tax Freedom Day in Saskatchewan actually happened on May 30. That's the second-earliest Tax Freedom Day in Canada, next to Alberta's TFD, which fell on May 16.
In 2015, the average Canadian family (with two or more people) will pay $44,980 in total taxes or 43.7 per cent of its annual income. In Saskatchewan, the average family will pay $47,897 in taxes, up $1,280 from last year, the report said. The list of taxes includes income taxes, payroll taxes, health taxes, sales taxes, property taxes, fuel taxes, vehicle taxes, profit taxes, import taxes, "sin" taxes and resource royalties.
So why does this year's Tax Freedom Day in Canada come one day later than last year? Because the average Canadian family's total tax bill will increase at a faster rate (3.1 per cent) than the growth in income (2.1 per cent).
"Governments across Canada are partly to blame for the increased tax burden because many have raised taxes again this year," added Charles Lammam, director of fiscal studies at the Fraser Institute.
The $1,353 net increase in the average Canadian family's total tax bill this year includes increases in income taxes ($927), payroll and health taxes ($312), sales taxes ($195) and auto, fuel and motor vehicle taxes ($55). In Saskatchewan, the $1,280 increase is due to higher income ($1,651) and higher income taxes ($883), along with increased health and payroll taxes ($289) and sales taxes ($186).
But a spokesman for the Ministry of Finance disputes the Fraser Institute's finding that Saskatchewan's taxes are higher in 2015 than 2014. "In the 2015-16 budget, there were no personal tax increases and no new taxes,'' said Jeff Welke, executive director of the ministry's communications branch. "So it's a little unusual for us to see that move (upward in tax burden)."
Moreover, the ministry takes issue with the institute's methodology that considers corporate taxes and royalties part of the tax burden on individuals. "The pulling in of non-renewable resource revenue would seem to be a bit unusual given the export-oriented nature of our resource industries,'' Welke said.
In contrast to the Fraser Institute's findings, the ministry says Saskatchewan's tax burden compares favourably with any jurisdiction in Canada, with the exception of Alberta. "We're second-lowest in the country" in terms of tax burden for three representative families used in the inter-city tax comparison in the annual budget, Welke said.
United Steelworkers economist Erin Weir also disagreed with the Fraser Institute's inclusion of corporate taxes and resource royalties as taxes on individuals. "Royalties are payments to the people of Saskatchewan for our resources, not a tax on us."
bjohn...@leaderpost.com
(c) Copyright (c) The Regina Leader-Post
----------------------------------------------------------
Miss a Tax Tale Miss a lot!
Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com
------------------------------------------------------------
Alan Baggett - http://www.taxcollectorsbible.com/ - Tax Collector's Bible
Tax Freedom Day -- when average Canadians start earning income for themselves and not the taxman -- fell on Wednesday this year -- one day later than in 2014 -- according to the Fraser Institute's annual and controversial tax burden calculation.
In Saskatchewan, Tax Freedom Day arrived four days earlier on June 6, but two days later than in 2014. But if you exclude natural resource levies, like royalties, Tax Freedom Day in Saskatchewan actually happened on May 30. That's the second-earliest Tax Freedom Day in Canada, next to Alberta's TFD, which fell on May 16.
In 2015, the average Canadian family (with two or more people) will pay $44,980 in total taxes or 43.7 per cent of its annual income. In Saskatchewan, the average family will pay $47,897 in taxes, up $1,280 from last year, the report said. The list of taxes includes income taxes, payroll taxes, health taxes, sales taxes, property taxes, fuel taxes, vehicle taxes, profit taxes, import taxes, "sin" taxes and resource royalties.
So why does this year's Tax Freedom Day in Canada come one day later than last year? Because the average Canadian family's total tax bill will increase at a faster rate (3.1 per cent) than the growth in income (2.1 per cent).
"Governments across Canada are partly to blame for the increased tax burden because many have raised taxes again this year," added Charles Lammam, director of fiscal studies at the Fraser Institute.
The $1,353 net increase in the average Canadian family's total tax bill this year includes increases in income taxes ($927), payroll and health taxes ($312), sales taxes ($195) and auto, fuel and motor vehicle taxes ($55). In Saskatchewan, the $1,280 increase is due to higher income ($1,651) and higher income taxes ($883), along with increased health and payroll taxes ($289) and sales taxes ($186).
But a spokesman for the Ministry of Finance disputes the Fraser Institute's finding that Saskatchewan's taxes are higher in 2015 than 2014. "In the 2015-16 budget, there were no personal tax increases and no new taxes,'' said Jeff Welke, executive director of the ministry's communications branch. "So it's a little unusual for us to see that move (upward in tax burden)."
Moreover, the ministry takes issue with the institute's methodology that considers corporate taxes and royalties part of the tax burden on individuals. "The pulling in of non-renewable resource revenue would seem to be a bit unusual given the export-oriented nature of our resource industries,'' Welke said.
In contrast to the Fraser Institute's findings, the ministry says Saskatchewan's tax burden compares favourably with any jurisdiction in Canada, with the exception of Alberta. "We're second-lowest in the country" in terms of tax burden for three representative families used in the inter-city tax comparison in the annual budget, Welke said.
United Steelworkers economist Erin Weir also disagreed with the Fraser Institute's inclusion of corporate taxes and resource royalties as taxes on individuals. "Royalties are payments to the people of Saskatchewan for our resources, not a tax on us."
bjohn...@leaderpost.com
(c) Copyright (c) The Regina Leader-Post
----------------------------------------------------------
Miss a Tax Tale Miss a lot!
Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com
------------------------------------------------------------
Alan Baggett - http://www.taxcollectorsbible.com/ - Tax Collector's Bible
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