Should we all fall down? Go boom? No.
In spite of the conservative think-tanks findings, offered without the benefit of helpful context, when the average Canadian family (income $72,393) learns it pays 41.3% of that amount in taxes, it may breathe a sigh of relief.
“It’s the best deal on the planet,” some people will say.
“It sounds like a lot, but we’re doing well,” others will say, and say it honestly.
Now, admittedly, 41.3% is more than the average family spends on food, clothing and shelter (those costs come in at 34% of income), but people are getting a lot for their 34%.
For example, in the Food Dept.:
The average Canadian is overweight and wears XL Levis with a stretchy waistband
Canadians make 17 million visits to restaurants per day
Canadians pay one of the lowest amounts for weekly groceries (under 15%), compared to income, in the entire world. The percentage is higher in the US; it stands at 45% in Indonesia
Canadians annually write grocery lists that include millions upon millions of dollars worth of cookies, cola, sugar-covered cereals and snack foods
The average Canadian family would do much for its health - and health care costs - if it spent less on food, cooked more meals at home and walked around the neighbourhood more often after supper.
I’m sure the Fraser think tank would agree.
["I'm sure the Fraser Inst. loves my ideas"]
About the Clothing Dept.:
The average Canadian family has seen the size of closets grow substantially over the years
For example, in my 1930s three-bedroom house, the three closets (one is a hall closet for coats and two vacuum cleaners; one bedroom does not have a closet) are no more than 3 ft. by 4 ft. Modern homes and apartments now often come with one or more walk-in closets, room enough for more clothes and shoes than one person can shake a stick at. Sorry, I digress.
‘Clothes Hog’ and ‘Shoe Hog’ are modern terms and many families hire professional organizers or declutterers to help bring material possessions under some kind of control
The vintage and used-clothing markets have grown substantially in the modern era
The aforementioned 34% likely includes the cost of Nike running shoes for weekend runners at $169 per pair and the expensive NHL jerseys that adorn many fans watching the current hockey playoffs
I would therefore say the average Canadian family is getting by pretty nicely at the moment.
The conservative-minded Fraser Institute may want the average Canadian to feel that government has to be smaller, programs have to be cut, taxes have to be reduced - but I don’t buy their small government, market-first, large lifestyle philosophy.
And about the Shelter Dept.:
The average Canadian is not finding costs related to their homes unbearable because of government spending
For example, in the early 1900s, 800 - 1,000 sq. ft. homes, and smaller, were common. My parents and my four siblings lived in a one and a half storey, seven room house in Norwich for many years. We managed to get along without pitching anyone into the streets.
My wife and I and two sons lived comfortably together in our current home, eight rooms, 1,050 sq. ft., before the boys moved into their own digs. Half of the house, including the basement, is now under-used.
I would estimate that the modern day standard for a house is greater than 2,100 sq. ft., or twice my home’s size.
I would guess furnishings cost in excess of $20,000 per home. And if that includes the latest big-screen TV and finished rec room, I would suspect the high average debt per family ($148 debt for every $100 income) is the result of over-borrowing for items on “the want list” and not the size of the government. Again, I digress.
["Personal thrift provides more benefits than small government, Mr. Fraser"]
Now, what about that other 25% that the average Canadian family has left to spend after taxes and life’s essentials?
How are Canadians doing in the transportation, communication, recreation, RRSP and backyard pool departments? Any ideas? Is the government standing in the way of our success, progress, or excess?
Stay tuned.
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Please click here to read PT 2 “Taxes take 41% of pay” Gasp??
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