Most of us hate paying our taxes and believe that we are paying too much. Unfortunately, all of us have to chip in so that the federal government can provide the essential public services that we need in our daily lives.
Torstar Community Brands took a by-the-numbers look at how the federal government spent our tax dollars between 2012 and 2018. As with most of us it has been a challenge for the government to make ends meet, and an analysis of six years’ worth of financial statements shows that they have spent considerably more than they have taken in. The gap has widened by $1.2 billion in the last fiscal year. So, where did our money go?
In the fiscal year 2017-2018 government spending was as follows:
29.84% went to National defence, crown corporations and other direct programs – including more than 100 departments and Crown corporations. The government departments included Citizenship and Immigration, Indigenous Services and Infrastructure Canada and cost billions to operate.
15.30% went to transfers supporting health and other social programs
15.23% went to benefits for the elderly. Transfers to elder benefits have been increasing over the years as these benefits programs were originally designed on a presumption of lifespan that is outdated as people are living a lot longer now. By 2030 one in four Canadians will be a senior compared to one in seven in 2012. However, the government still benefits from seniors as they pay income tax on their RRSP withdrawals.
14.17% went to other transfer payments
7.05% went to benefits for children
6.58% went to public debt charges
5.93% went to employment insurance
5.91% went to fiscal arrangements and other transfers
Where does this money come from?
In the fiscal year 2017 -2018 sources of income for the government were as follows:
48.98% came from Personal income taxes
15.4% came from Corporate income taxes
11.72% came from Goods and Services Tax
9.37% came from other revenue
6.74% came from EI revenue
2.5% came from non-resident Income tax
1.89% came from other excise taxes and duties
1.83% came from energy taxes
1.73% came from import customs duties
Canadians are taxed from 15% for those who earn $47,630 or less up to the highest rate of 33% for those earning $210,371 and over. Although we all like to complain that we pay too much tax compared to other countries, it is worth considering the benefits that we receive from the government that many other countries do not provide to their citizens.
From an article by Sheila Wang in YorkRegion.com
Financial Literacy Lessons Should Begin Early in Life
Will Covid-19 Relief Measures Affect my Taxes?
What does your CRA Notice of Assessment Mean?
Is it Time for the Annual Clean-up and Back-up of your Files?
When can you Expect your Tax Refund this year?
Are you one of the Almost 50% of Canadians Taking Advantage of the Tax Deadline Extension?
How to Minimize Taxes on Your Small Business
What you Need to Know About Filing Coupled Tax Returns