Taxpayers Federation responds to Fraser Institute's calculation of June 23rd as Provincial Tax Freedom Day

WINNIPEG/OTTAWA: The Canadian Taxpayers Federation (CTF) reacted to The Fraser Institute's calculations that this year's "Tax Freedom Day" for Manitoba will occur on June 23rd, two days later than last year. Each year, the Fraser Institute calculates Tax Freedom Day as the day of the year when taxpayers finally start working for themselves after paying the total tax bill imposed on them by governments. Prior to the Tax Freedom Day, the equivalent of all money earned by taxpayers is required to pay the numerous taxes, fees and levies imposed by federal, provincial and municipal governments. The original release and calculations is available at: www.fraserinstitute.ca. Tax Freedom Day for Canada falls on voting day, June 28th - eighteen days later than in 1993.

"This is a sobering reminder of the impact of government taxation in every taxpayer's life," stated provincial director Adrienne Batra. "In an average work day, Manitoba taxpayers spend the morning working for government, and the afternoon paying for their family's bills shelling out 46.4% of their income to pay their taxes."

A Manitoba family earning $60,000 a year will pay $31,712 in taxes or 46.4% of their entire income. These figures include the following taxes: income tax, sales tax, liquor, tobacco and amusement tax, social security, pension, property taxes, import duties, profits tax, natural resources and other taxes.
"The later date is in part due to the NDP government expanding the Provincial Sales Tax to professional services, increasing so-called sin taxes on an annual basis, increasing licensing fees and allowing bracket creep to continue unabated," added Batra. "Even though there has been a marginal decrease in the middle tax bracket, we are feeling the squeeze from government fees."

Manitoba's Tax Freedom Day is two days later than 2003 falling on June 23rd in 2004, despite modest income tax relief. British Columbia's day falls on July 3rd, Saskatchewan June 25th, Alberta June 13th and Ontario June 27th. According to the Fraser Institute: "the earlier days in Manitoba and Saskatchewan, come to some extent at the expense of later celebrations in Ontario, Alberta and BC."

The CTF has consistently advocated for broad-based tax relief as the best means to spur economic growth, job creation and allow Canadians the freedom to plan for their future by investing and reducing levels of personal debt. "The Canadian trend demonstrates the government is either unwilling or unable to control costs, cut waste, and prioritize spending," concluded Batra.