Tax Freedom Day occurred on June 6 this year, which is 18 days earlier than its arrival in the year 2000.
Tax Freedom Day marks the date when the average Canadian gets to keep the earnings they will make for the rest of the year. This illustration is a reminder that Canadians pay a good portion of their wages to support the national treasury. Tax Freedom Day is calculated each year by the Fraser Institute to determine whether taxes are going up or down.

The good news is that taxes are going down. Last year, Tax Freedom Day fell on June 9, so we get to keep three more days of our gross earnings this year. This government is pleased that its tax relief programs have steadily decreased the amount of taxes Canadians must pay year after year. Putting additional money back into consumers’ pockets is especially gratifying during a recession.

It is important to note that Canadians pay much more than just income tax on their tax bill. The total tax bill assessed by all levels of government requires almost 43 percent of an average family’s annual income. The 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, alcohol and tobacco taxes, natural resource fees, fuel taxes, hospital taxes and a host of other levies.

The federal government has cut personal income taxes four years in a row and raised the amount that can be earned tax free to $10,320 in 2009. Every purchase Canadians make saves them money with a GST that has been reduced from seven to five percent. We have also made it possible for Canadians to contribute up to $5,000 per year into a Tax Free Savings Account where capital gains and investment income will not be taxed.

Seniors will enjoy additional tax savings with the increase in age credit by $1,000 in both 2006 and 2009. They can also benefit from income splitting and the double pension income credit. And, with the Child Tax Credit, families with children under 18 are eligible to claim $2,089 per child in 2009. This government is doing its best to reduce taxes that affect young and old, so families can keep more of their hard-earned dollars.

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The audio version of Garry's June 15, 2009 op-ed column can be heard by clicking here