Honest discussion about taxes must include bill Canadian families pay

Every year at the Fraser Institute, we calculate the total tax bill—which includes income taxes, property taxes, sales taxes, fuel taxes, etc.—for the average Canadian family. This year we found the average family paid 43.0 per cent of its annual income in taxes in 2023—more than it spent on basic necessities such as food, clothing and housing combined, and significantly higher than the 33.5 per cent it paid in 1961.

Put differently, the average family’s tax bill has increased 2,705 per cent since 1961—or 180.3 per cent after adjusting for inflation.

And yet, in a recent column, Star contributing columnist Linda McQuaig said we’re “distorting the public debate over taxes” by publishing these facts while stating that the effective tax rate the average family pays has only “increased by 28 per cent since 1961.” Presumably, she arrived at her 28 per cent figure by calculating the change in the share of income going to taxes from 33.5 per cent (in 1961) to 43.0 per cent (in 2023). And yes, that’s one way to measure tax increases. But again, the inflation-adjusted dollar value—what the average family actually pays—of the tax bill has increased by 180.3 per cent. That’s not distortion, that’s explaining the increase in terms everyone can understand.

Of course, these aren’t simply academic points. Taxes, particularly at a time when families are struggling with the cost of living, have real-world effects. According to a recent poll, 74 per cent of respondents feel the average family is overtaxed, and 80 per cent believe the average family should pay 40 per cent or less of its income in total taxes.

Another important question is whether families get value for the taxes they pay. Polling shows nearly half (44 per cent) of Canadians feel they receive “poor” or “very poor” value from government services while only 16 per cent believe they receive “good” or “great” value. This should be no surprise. Health-care wait times are at record highs. Student test scores are declining. And Canada routinely fails to meet our NATO defence spending commitments.

Meanwhile, governments waste taxpayer dollars on pet projects such as a federal infrastructure bank, which, despite a budget of at least $13.2 billion, has delivered only two relatively minor projects in seven years. Or handouts to new electric vehicle (EV) owners that cost taxpayers—including Canadians unable to afford EVs—more than $587 million annually.

Can we really say governments are using our money wisely?

Unfortunately, many governments are doubling down. Municipalities such as Vancouver and Toronto raised property taxes by at least 7.5 per cent this year. Toronto city council has even floated the idea of a municipal sales tax. It’s hard to argue that you want to make life more affordable for families by leaving less money in their pockets.

And of course, the Trudeau government recently raised taxes on capital gains. But despite claims to the contrary, this tax hike won’t only affect wealthy investors. According to an analysis by economist Jack Mintz, 50 per cent of taxpayers who claim more than $250,000 of capital gains in a year earned less than $117,592 in normal annual income from 2011 to 2021. These include Canadians with modest annual incomes who own businesses, second homes or stocks, and who may choose to sell those assets once or infrequently in their lifetimes (when they retire, for example).

Finally, more tax hikes are likely on the horizon. The federal government and eight provinces are currently running budget deficits, meaning they’re not taxing enough to keep up with spending. Deficits produce debt, which will be passed onto future generations of Canadians in the form of higher taxes.

If governments across Canada want to leave more money in the pockets of Canadians, they should reduce taxes. And everyone should want an honest discussion about taxes in Canada, based on facts, not distortions.

Author:

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Related Topics:#FraserInstitute #JakeFuss CanadaTotalTaxBill CanadianFamilyTaxes

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Canadian Energy Centre / 4 hours ago

Cross-Canada economic benefits of the proposed Northern Gateway Pipeline project

Alberta / 4 hours ago

Albertans need clarity on prime minister’s incoherent energy policy

Canadian Energy Centre

Cross-Canada economic benefits of the proposed Northern Gateway Pipeline project

Published on June 15, 2025

Todayville

From the Canadian Energy Centre

Billions in government revenue and thousands of jobs across provinces

Announced in 2006, the Northern Gateway project would have built twin pipelines between Bruderheim, Alta. and a marine terminal at Kitimat, B.C.

One pipeline would export 525,000 barrels per day of heavy oil from Alberta to tidewater markets. The other would import 193,000 barrels per day of condensate to Alberta to dilute heavy oil for pipeline transportation.

The project would have generated significant economic benefits across Canada.

The following projections are drawn from the report Public Interest Benefits of the Northern Gateway Project (Wright Mansell Research Ltd., July 2012), which was submitted as reply evidence during the regulatory process.

Financial figures have been adjusted to 2025 dollars using the Bank of Canada’s Inflation Calculator, with $1.00 in 2012 equivalent to $1.34 in 2025.

Total Government Revenue by Region

Between 2019 and 2048, a period encompassing both construction and operations, the Northern Gateway project was projected to generate the following total government revenues by region (direct, indirect and induced):

British Columbia

Provincial government revenue: $11.5 billion
Federal government revenue: $8.9 billion
Total: $20.4 billion

Alberta

Provincial government revenue: $49.4 billion
Federal government revenue: $41.5 billion
Total: $90.9 billion

Ontario

Provincial government revenue: $1.7 billion
Federal government revenue: $2.7 billion
Total: $4.4 billion

Quebec

Provincial government revenue: $746 million
Federal government revenue: $541 million
Total: $1.29 billion

Saskatchewan

Provincial government revenue: $6.9 billion
Federal government revenue: $4.4 billion
Total: $11.3 billion

Other

Provincial government revenue: $1.9 billion
Federal government revenue: $1.4 billion
Total: $3.3 billion

Canada

Provincial government revenue: $72.1 billion
Federal government revenue: $59.4 billion
Total: $131.7 billion

Annual Government Revenue by Region

Over the period 2019 and 2048, the Northern Gateway project was projected to generate the following annual government revenues by region (direct, indirect and induced):

British Columbia

Provincial government revenue: $340 million
Federal government revenue: $261 million
Total: $601 million per year

Alberta

Provincial government revenue: $1.5 billion
Federal government revenue: $1.2 billion
Total: $2.7 billion per year

Ontario

Provincial government revenue: $51 million
Federal government revenue: $79 million
Total: $130 million per year

Quebec

Provincial government revenue: $21 million
Federal government revenue: $16 million
Total: $37 million per year

Saskatchewan

Provincial government revenue: $204 million
Federal government revenue: $129 million
Total: $333 million per year

Other

Provincial government revenue: $58 million
Federal government revenue: $40 million
Total: $98 million per year

Canada

Provincial government revenue: $2.1 billion
Federal government revenue: $1.7 billion
Total: $3.8 billion per year

Employment by Region

Over the period 2019 to 2048, the Northern Gateway Pipeline was projected to generate the following direct, indirect and induced full-time equivalent (FTE) jobs by region:

British Columbia

Annual average: 7,736
Total over the period: 224,344

Alberta

Annual average: 11,798
Total over the period: 342,142

Ontario

Annual average: 3,061
Total over the period: 88,769

Quebec

Annual average: 1,003
Total over the period: 29,087

Saskatchewan

Annual average: 2,127
Total over the period: 61,683

Other

Annual average: 953
Total over the period: 27,637

Canada

Annual average: 26,678
Total over the period: 773,662

Alberta

Albertans need clarity on prime minister’s incoherent energy policy

Published on June 15, 2025

Todayville

From the Fraser Institute

By Tegan Hill

The new government under Prime Minister Mark Carney recently delivered its throne speech, which set out the government’s priorities for the coming term. Unfortunately, on energy policy, Albertans are still waiting for clarity.

Prime Minister Carney’s position on energy policy has been confusing, to say the least. On the campaign trail, he promised to keep Trudeau’s arbitrary emissions cap for the oil and gas sector, and Bill C-69 (which opponents call the “no more pipelines act”). Then, two weeks ago, he said his government will “change things at the federal level that need to be changed in order for projects to move forward,” adding he may eventually scrap both the emissions cap and Bill C-69.

His recent cabinet appointments further muddied his government’s position. On one hand, he appointed Tim Hodgson as the new minister of Energy and Natural Resources. Hodgson has called energy “Canada’s superpower” and promised to support oil and pipelines, and fix the mistrust that’s been built up over the past decade between Alberta and Ottawa. His appointment gave hope to some that Carney may have a new approach to revitalize Canada’s oil and gas sector.

On the other hand, he appointed Julie Dabrusin as the new minister of Environment and Climate Change. Dabrusin was the parliamentary secretary to the two previous environment ministers (Jonathan Wilkinson and Steven Guilbeault) who opposed several pipeline developments and were instrumental in introducing the oil and gas emissions cap, among other measures designed to restrict traditional energy development.

To confuse matters further, Guilbeault, who remains in Carney’s cabinet albeit in a diminished role, dismissed the need for additional pipeline infrastructure less than 48 hours after Carney expressed conditional support for new pipelines.

The throne speech was an opportunity to finally provide clarity to Canadians—and specifically Albertans—about the future of Canada’s energy industry. During her first meeting with Prime Minister Carney, Premier Danielle Smith outlined Alberta’s demands, which include scrapping the emissions cap, Bill C-69 and Bill C-48, which bans most oil tankers loading or unloading anywhere on British Columbia’s north coast (Smith also wants Ottawa to support an oil pipeline to B.C.’s coast). But again, the throne speech provided no clarity on any of these items. Instead, it contained vague platitudes including promises to “identify and catalyse projects of national significance” and “enable Canada to become the world’s leading energy superpower in both clean and conventional energy.”

Until the Carney government provides a clear plan to address the roadblocks facing Canada’s energy industry, private investment will remain on the sidelines, or worse, flow to other countries. Put simply, time is up. Albertans—and Canadians—need clarity. No more flip flopping and no more platitudes.