June 6 was Tax Freedom Day in British Columbia – three days later than it was last year – according to the Fraser Institute.
Tax Freedom Day across Canada was June 9, which is a day later than it was last year.
Tax Freedom Day is the date on which taxpayers across Canada have earned enough money to cover all the taxes they pay to all levels of government over the entire year.
“Without our Tax Freedom Day calculations, it’s nearly impossible for Canadian families to know all the taxes they pay because governments levy such a wide range of taxes including income taxes, payroll taxes, health taxes, sales taxes, property taxes, fuel taxes, vehicle taxes, profit taxes, import taxes, ‘sin’ taxes on liquor and tobacco, and more,” said study co-author Charles Lammam, resident scholar in economic policy at the Fraser Institute.
The national calculations are based on an annual family income of around $100,000 and a tax rate of 43.5%, which includes all taxes.
The day was delayed by a day because the average family’s total tax bill is expected to increase this year by about 3.2%, or $1,355, while income is only expected to grow by 2.1%, or $2,072.
The total tax will include $589 in income taxes, $364 for payroll and health taxes, $191 in sales tax and $47 for property tax.
“The delay in Tax Freedom Day this year continues a trend of delays since 2009 when it fell on June 3,” Lammam said.
“Governments across the country are partly to blame since many have raised taxes after the recent recession to make up for big spending increases and deficits.”
Although the date has been trending later in recent years in B.C., Tax Freedom Day is actually earlier this year when compared with 1981, when it landed on June 9. May 30 was the date for Tax Freedom Day nationally that year.
