Monday, December 22, 2008

Taxes taking more from household budgets

Statistics Canada reports that Canadians spent 6% more on income taxes in 2007 than the year before. Tax relief remains a work in progress as CanWest explains.

Despite the tax-cut boasts of governments, Canadian families paid six per cent more on average in personal income taxes last year, which remained the single largest expense for families, even ahead of keeping a roof over their heads.

Households spent an average of $69,950 in 2007, up 3.3 per cent from 2006, Statistics Canada said Monday in its annual report on family expenditures, noting that the increase was also more than a full percentage point more than the 2.2 per cent increase in the cost of living last year.

But among major expenditures it was personal taxes that posted the steepest increase, rising by six per cent to an average of $14,450. As a result, taxes ate up 20.6 per cent of the average family budget, up from 20 per cent in 2006, and reversing a generally downward trend from an all-time high of 21.9 per cent in 1996.

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