Canadians spend more on taxes than bare necessities -study

OTTAWA, Aug 27 (Reuters) - Canadians spend more on taxes
than on food, clothing and shelter combined, according to a
report released on Thursday, as increases in an average family's
tax bill have outpaced the cost of basic necessities in the last
five decades.
Last year, the average family made C$79,010 ($59,607.70), of
which C$33,272 went to taxes and C$28,887 went to food, clothing
and shelter, said the study from public policy think tank the
Fraser Institute, which calls itself non-partisan.
That means Canadians spent 42.1 percent of their income on
taxes and 36.6 percent on basic needs. By contrast, 33.5 percent
of an average family's income went to taxes and 56.5 percent was
spent on necessities in 1961.
"Over the past five decades, the tax bill for the average
Canadian family has ballooned," Charles Lammam, co-author of the
study, said in a statement.
Indeed, taxes have taken up a greater percentage of income
than basic necessities for most of the years since the early
1980s, according to the report.
The increase in total taxes since 1961 has outstripped rises
in the cost of food, shelter and clothing. Accounting for
inflation, taxes were still up 149.2 percent since then, the
report said.
The Fraser Institute's tax index reflects both the "visible
and hidden" taxes that Canadians pay to all levels of
government, including income, property and other taxes.
A recent report from the Organization for Economic
Co-operation and Development found the average income tax rate
in Canada was 15.6 percent, in line with the OECD average and
slightly lower than the United States' 17.2 percent.
With an election in Canada less than two months away and an
economy that is struggling with the slide in oil prices, the
study prompted questions for politicians on the campaign trail.
"This is exactly why it is critical in this country we keep
a national government dedicated to keeping taxes down,"
Conservative Prime Minister Stephen Harper told reporters.
Harper, who is running for a rare fourth consecutive term in
office, has maintained Canada should stick with the Conservative
plan of balanced budgets and low taxes.
($1 = 1.3255 Canadian dollars)