High taxes leave Ontario with one of the latest Tax Freedom Days in Canada



    VANCOUVER, June 19 /CNW/ - Tax Freedom Day falls on June 19 in Ontario
this year, one of the latest dates in Canada ahead of only Saskatchewan,
Quebec and Newfoundland and Labrador, according to The Fraser Institute's
annual Tax Freedom Day calculations.
    "Ontario's taxpayers are facing one of the heaviest tax burdens in
Canada," said Niels Veldhuis, The Fraser Institute's Director of the Centre
for Tax Studies. "As a result, Ontarians are working substantially more for
government and less for themselves and their families compared to other
Canadians."
    Alberta has the earliest Tax Freedom Day on June 1, followed by New
Brunswick and Prince Edward Island (June 14), then British Columbia on
June 16.
    Only Saskatchewan (June 22), Quebec (June 26) and Newfoundland and
Labrador (July 1) have later Tax Freedom Days than Ontario. Nova Scotia has
the same Tax Freedom Day as Ontario.
    Ontario's Tax Freedom Day has changed little since 2000 and in fact, its
arrival on June 19 this year is just one day earlier than in 2000. This slight
improvement is largely the result of federal tax relief such as the decrease
in the Goods and Services Tax (GST). Without recent federal tax relief, there
is little question that Tax Freedom Day in Ontario would arrive at its latest
date ever, given the tax increases at the provincial level, Veldhuis noted.
    In comparison, Tax Freedom Day in Alberta arrives 20 days earlier than it
did in 2000 while British Columbia and Saskatchewan both have Tax Freedom Days
arriving nine days earlier than 2000.
    "While taxpayers in other provinces are celebrating substantially earlier
Tax Freedom Days, Ontarians have faced numerous tax increases since 2000
including a new Health Premium Tax and higher business taxes," Veldhuis said.
"Most other provinces are reducing taxes to make their economies more
competitive, yet Ontario has increased taxes. That should be a cause for great
concern."
    Independent research organization The Fraser Institute calculates Tax
Freedom Day to provide a comprehensive indicator of the total amount of taxes
paid by the average Ontario family to all three levels of government: federal,
provincial, and local.
    Taxes used to compute Tax Freedom Day include income taxes, property
taxes, sales taxes, profit taxes, health, social security and employment
taxes, import duties, license fees, taxes on the consumption of alcohol and
tobacco, natural resource fees, fuel taxes, hospital taxes and a host of other
levies.
    In 2007, the average Ontario family (with two or more individuals) will
earn $90,018 and pay a total of $41,494 in taxes, for a total tax bill
amounting to 46.1 per cent of its income.
    "If you look at the average Ontario family's total tax bill, each and
every dollar they earn before June 19 would be required to pay the taxes owing
to all levels of government. It takes until June 19 before they begin earning
money for themselves," Veldhuis said.
    On a national basis, when tax levels and incomes are averaged for all
Canadians, Tax Freedom Day falls on June 20, four days earlier than 2006 when
it fell on June 24.
    The latest Tax Freedom Day in Canadian history was in 2000, when it fell
on June 25. Tax Freedom Day decreased to June 17 in 2001 before steadily
advancing to June 24 in 2005 and 2006.
    "It is virtually impossible for the average Ontario taxpayer to know how
much they truly pay in taxes. The aim of Tax Freedom Day is to give people a
true indication of the amount of money we pay in taxes each year," Veldhuis
said.
    Ontarians can calculate their personal Tax Freedom Day using The Fraser
Institute's Personal Tax Freedom Day Calculator at www.fraserinstitute.ca. The
report, Canadians Celebrate Tax Freedom Day on June 20, is also available at
www.fraserinstitute.ca.

    
    Tax Freedom Day - Province by Province
    --------------------------------------
    -------------------------------------------------------------------------
    Province  AB   NB    PEI   BC    MB    ON    NS    SK    QC    NL  Canada
    -------------------------------------------------------------------------
    2007
    Tax     June  June  June  June  June  June  June  June  June  July  June
    Freedom   1    14    14    16    16    19    19    22    26     1    20
    Day
    -------------------------------------------------------------------------
    

    The Fraser Institute is an independent research and educational
organization based in Canada. Its mission is to measure, study, and
communicate the impact of competitive markets and government intervention on
the welfare of individuals. To protect the Institute's independence, it does
not accept grants from governments or contracts for research. Visit
www.fraserinstitute.ca





For further information:

For further information: Niels Veldhuis, Director of the Centre for Tax
Studies, The Fraser Institute, Tel. (604) 714-4546, Email:
nielsv@fraserinstitute.ca; Dean Pelkey, Associate Director of Communications,
The Fraser Institute, Tel: (604) 714-4582, Email deanp@fraserinstitute.ca

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