Canadians pay 42% of income in tax — more than they spend on food, shelter, clothing combined | National Post

Unfortunately, all too typical of shallow economic analysis, aligned with ideology.

Of course, one can and should always question value for money with respect to taxation, as well as reviewing the need for government intervention and programs.

But an increase in the share of taxation from 33.5 percent in 1961 (pre-medicare) to 41.8 percent in 2013 without a corresponding analysis of the change in government services is the kind of sloppy “stop the gravy train” Rob Ford unsubstantiated bumper sticker.

A more serious approach would be to compare the increase in program spending with the increase in programs and services, and focus the discussion on whether or not the existing policy rationales and needs are still appropriate:

“Telling people that almost 42% of their income goes on taxes, that’s the first important takeaway. Then people can say, ‘Hold on, that’s one area that can be scaled back.’ We want to start that conversation and this is the data to do that,” he said.

Given that incomes have increased substantially since 1961, it’s inevitable taxes would also rise in terms of the amounts paid, but tax rates have increased because governments provide a wider range of services.

Since 1961, the average family’s tax bill rose by 1,832%, dwarfing increases in the costs of housing, clothing and food.Last year, the average family earned $77,381 and paid $32,369 in total taxes, or 41.8%. Food, shelter and clothing ate up another 36.1%.

For 1961, the numbers were $5,000 in income, $1,675 on taxes (33.5%) and food, shelter and clothing 56.5%.

Canadians pay 42% of income in tax — more than they spend on food, shelter, clothing combined | National Post.