We’ve heard a lot about the 2% cut to the GST and the Conservative cuts to marginal income tax rates somewhere in neighbourhood of 0.5% for the lowest income bracket, but Statistics Canada shows we’re still spending more than we did last year:
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.
In total, households spent an average of $69,950 in 2007, up 3.3 per cent from 2006, Statistics Canada said Monday in its report on family expenditures, noting that the increase was also more than a full percentage point above the 2.2 per cent increase in the cost of living last year.
Among major expenditures, however, 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 20.1 per cent in 2006, and reversing a generally downward trend from an all-time high of 21.9 per cent in 1996.
Spending on shelter, the second largest expenditure, rose 5.1 per cent to an average of $13,640, in large part due to a more than 10 per cent increase in mortgage interest rates.
Of further interest, our childless country that requires so much investment in immigration seems to have bottomless pockets for pets, spending more on their favourite feline or canine than the average cost of a child. Methinks our priorities are somewhat warped in this nation.
The rest of the article is also worth reading, although it’s probably important to note that even if government cut taxes, you can see from the laundry list of expenses in that article that there would quickly be an increase in some other area to shore up the problem of suddenly having money to spend. I worked a lot of overtime recently, and I noted that the government took so much of it away that I was working for about 8-buck an hour all told. See, when government disincentivizes production, you’re going to see an natural reduction in the production of the economy. Nobody wants to wait until March to get their interest-zero money back.

















