Tuesday, December 13, 2005

Cost of government via personal income taxes is the single largest expenditure for Canadian families ...

... according to a Stats Can report on household expenses, detailed here.

On average, income taxes take up 20% of the family budget, followed by 19% on shelter, 14% on transportation, and 11% on food.

Also of interest is a comparison between the lowest one-fifth of income earners and the top one-fifth. As the article states,

"The one-fifth of Canadian households with the lowest income spent about $21,300 in 2004. Of this, almost 51 percent went to the basics of food, shelter and clothing, but only 3.5% to income taxes.

The one-fifth with the highest income spent an average of $129,400 in 2004, with 28% going to the basics and about the same on taxes".


Yes, the rich DO pay more tax so tax cuts do disproportionately affect their incomes in a positive way.

That's a good thing.

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