It's that time of year again. The Fraser Institute has released its inflated "Look How Bad We Are Taxed" report.
Canadians spent more on taxes than basic necessities in 2025: Study
The 42% of income going to taxes figure is not what a typical Canadian family actually pays.
This so-called average family? It's a hypothetical construct which includes unattached individuals, and assigns it not only personal income, sales, property and payroll taxes, but also corporate taxes, import duties and resource revenues, even though much of those burdens falls unevenly on shareholders, workers, consumers and foreigners.
It also treats taxes paid directly by employers—such as the employer portions of CPP and EI—as costs borne by families on the theory that they reduce wages. Fraser assumes that employer payroll taxes ultimately come out of workers’ wages, so it adds them to the family’s tax bill.
We all know that corporations are begging to pay us more, and to charge less for their products and services, instead of increasing profits, right? Right? 🙄🙄
If payroll taxes and corporate tax rates were reduced, we'd never see a penny of it.
It also counts CPP and EI payments without recognizing their associated benefits.
The tax burden portioned to the average also includes capital gains paid on the sale of secondary properties—hardly a typical family experience.
I do not know what the correct percentage is. I do know that year after year, Fraser produces an inflated one.
What we pay in taxes is a topic worthy of discussion and debate. It does not need to be exaggerated to be so.