Congratulations to the average Canadian! As of June 10, you are officially working for yourself. While this date is arbitrary, and is different for each of us, it highlights the reality of the onerous tax burden that has been placed on Canadians. June 10 represented that 43.6% of the year has gone by which is the equivalent to the average amount of taxes we pay on our total income. This varies by region and income brackets, but the average Canadian can expect to pay between 35% and 60% of their income to the CRA. These figures include sales tax, carbon tax and the so called sin tax on liquor, tobacco and cannabis products.
The message I would like to put across is that everything you purchase, be it groceries, vehicles, dinner out or your home is all paid for with an after tax dollar. So that $30,000 truck will actually cost you closer to $50,000. Meaning, you need to earn $50,000 to pay for that $30,000 vehicle. Now think about that with your home, that’s now multiplied by 20 in the Fraser Valley and 30-40 times in Vancouver. Please keep in mind these figures don’t include interest and other lending charges for financing, when that is added in, the math looks worse!
I would like to thank the #Fraserinstitute for the infographics.
If you would like to talk about strategies on Financial Planning that includes a comprehensive look at your tax situation, please drop me a line!