Gotta love that "FREE" healthcare:
Ted Byfield's commentary on Canadian Taxes in the May 11, 1998 issue of the Alberta Report:
Canada is now the world's top nation when it comes to paying taxes, that is
By Ted Byfield
That Canada has the highest tax burden of all the G-7 countries, the other six being the United States, Britain, Japan, Germany, France and Italy. Notice the presence of Italy. I've always thought the Italian tax burden to be horrendous. So no doubt it is, but ours is worse.
Our total tax burden is 28% higher than the G-7 average and 48% higher -- that's half as much again -- as the U.S. rate.
Income tax in Canada is 56% higher than the G-7 average, and our corporate taxes 9% higher.
Our property taxes are higher than any of the 29 countries in the OECD (the Organization for Economic Cooperation and Development).
A family of four in the U.S. can earn up to $24,675 without paying any tax on it. If they have a home mortgage, their non-taxable total can rise to $30,000 since mortgage interest is deductible. In Canada, income becomes taxable at about half of that -- $12,836 (just under $250 a week). Mortgage interest is not deductible.
In 1993, when the Liberals again took office, tax revenues totalled $116.5 billion, or approximately $8,951 per working Canadian. This year the government will collect $160 billion or $11,335 per working Canadian, an increase of 26% in five years. In this five-year period income tax revenues alone are up 37%, chiefly because inflation lifts salaries, putting everybody in higher tax brackets. The government used to compensate by indexing tax brackets for inflation; when they stopped, billions upon billions more poured into Ottawa.
The overall result, according to StatCan figures, is that any improved family earnings accrue largely to the government. Between 1989 and 1995, the real after-tax income of the average Canadian family fell by $3,461 -- from $41,084 to $37,623.
Of course, Ottawa would be quick to remind us that these taxes cover medical care which is privately funded in the U.S. But in B.C., replies Mr. White, people contribute $7.2 billion in premiums to B.C. medicare, plus billions more through their federal taxes. The Fraser Institute estimates the average B.C. family pays $3,500 in taxes for medical services. In neighbouring Washington State a family of four would pay Cdn$6,570 for similar coverage -- but it would also be paying about $12,000 less in taxes.
Michael Campbell writes in a Vancouver Sun column that a B.C. couple with no children will pay $28,461 in taxes on an income of $57,949. In other words, the government gets one dollar of every two, plus employment insurance and CPP [Canada Pension Plan] contributions. Since 1990, he says, average after-tax income has fallen by 8% in B.C.