Public services a bargain for Canadians: Study

    TORONTO, April 15 /CNW Telbec/ - The majority of Canadian households
enjoy a higher quality of life because the public services their taxes fund
come at a solid bargain, according to a new study by the Canadian Centre for
Policy Alternatives (CCPA).
    Canada's Quiet Bargain: The Benefits of Public Spending responds to
incessant calls for tax cuts and concludes public services make a significant
contribution to the majority of Canadians' standard of living - worth at least
50% of their income.
    "What passes for a tax cut debate in Canada is really only half a
debate," says economist Hugh Mackenzie, the study's co-author and CCPA
research associate.
    "Our taxes pay for services that are extremely valuable to Canadians. The
suggestion we often hear, that taxes are a burden, hides the reality that our
taxes fund public services that make Canada's standard of living among the
very best."
    The study shows middle-income Canadian families enjoy public services
worth about $41,000 - or 63% of their income. Even households earning
$80,000-$90,000 a year enjoy public services benefits equivalent to about half
of their income.
    The study also shows 80% of Canadians would be better off if the federal
government hadn't cut the GST; 75% would be better off if their provincial
governments invested in public services instead of broad-based income tax
cuts; and 88% would be better off without federal cuts to capital gains taxes.
    "Tax cuts are always made to sound like they're free money to
middle-income Canadians - they are anything but," says Mackenzie. "We're far
better off with the public services our taxes fund than we are with tax cuts."

For further information:

For further information: Kerri-Anne Finn, (613) 563-1341 x 306; Visit or to download the report and
calculate the value of your family's public services

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Canadian Centre for Policy Alternatives

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