Today is Tax Freedom Day! Statistically, this is the first day of the year that our salary doesn't go towards paying taxes

Three weeks shy of the half way mark for the year, June 6th is Tax Freedom Day for Canadians, according to The Fraser Institute. Thus, once the full working year is complete, we can look back and view all the work performed until June 5th as paying the total tax bill imposed on us by federal, provincial and municipal governments.

And the trend is to working longer to pay still more taxes: June 6th is two days later than Tax Freedom Day 2010, which fell on June 4th.

Improving economy raises tax take

 However, the Fraser Institute says the later date this year can be attributed to Canada’s improving economy: as incomes rise, a family’s tax burden rises because of the progressive nature of our income tax system and because of consumption taxes like the GST and HST.

The average Canadian family earned $93,831 income in 2011 and paid 42.6% of that or $39,960 in taxes at all level of governments.

This year’s Tax Freedom Day would be a couple weeks later still if governments were not running deficits. The Balanced Budget Tax Freedom Day is on June 22.

The latest Tax Freedom Day in our history was in 2000, when it fell on June 24th, just a week shy of the half way mark for the year.

When you think about it, the phrase “Tax Freedom” is the ultimate oxymoron.

Click here to calculate your own personal Tax Freedom Day. You'll find out how many days you will have worked for the government and how many days for yourself.

Source: Jonathan Chevreau, Financial Post



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