Categories Politics

Canada’s Tax Burden: Where Is Your Money Going?

Canada ranks 25th globally among the highest-taxed countries, placing it in the upper third of nations with the heaviest tax burdens. Canadians pay taxes at every level—federal, provincial, and local—covering a broad range of areas.

From income tax to payroll tax, health tax, sales tax, property tax, fuel tax, and even carbon tax, the list of contributions Canadians make seems endless. On top of federal taxes, Canadians also face provincial or territorial taxes that vary based on where they live.

Khalistani Protesters on the street

Taxes vs. Basic Necessities

In 2022, the average Canadian family spent 45.3% of their household income on taxes. To put this into perspective, only 35.6% of their income went toward basic necessities such as food, clothing, and shelter. This means Canadians, on average, pay more in taxes than they do on essential living expenses.

Where Do These Taxes Go?

A significant portion of taxes funds public resources like healthcare and transit systems, while another sizable chunk supports social programs abroad. This allocation has become a controversial topic for many taxpayers.

On June 4, 2019, Prime Minister Justin Trudeau announced a ten-year commitment of $700 million annually to support sexual and reproductive health and rights programs in developing countries, including those in fragile and conflict-affected states.

Under the SheSOARS (Strengthening Opportunities in Accessing Reproductive Services) initiative, $200 million was earmarked for 15 projects in over 18 countries, primarily in Africa. These programs aim to empower women and girls by improving access to reproductive healthcare.

Where’s the Accountability?

While the initiative’s goals sound noble, questions about transparency have surfaced. Critics point out a glaring issue—the government lists funded amounts on its website but provides no visible proof or receipts to show how the money is spent or whether it achieves its intended impact.

Social media users on platforms like X (formerly Twitter) have voiced their concerns, with many demanding greater accountability. Some people are expressing frustration that we are sending funds abroad while we still have unresolved issues at home in Canada, such as housing affordability and healthcare shortages.

A twitter user commented "Only a small fraction of money goes towards these non existant problems while the vast majority of it is diverted to line pockets. A twitter user saying "Proof positive Canadians are paying waaaay too much in taxes." Twitter user saying "looks like canadians taxes hard at work for other people" "global affairs canada should berenamed to local affairs Canada and keep its damned nose out of world business and concentrate on the issues at home.

 

A Call for Answers

The debate over where Canadian taxes go raises important questions about priorities and transparency. Should taxpayers play a greater role in deciding how to allocate their money? Should the government provide detailed reports on international spending to ensure accountability?

Canada has a high tax burden, but it’s crucial to examine how effectively the government uses those taxes—both at home and abroad.

What are your thoughts on Canada’s tax spending? Should we place more focus on domestic issues? Share your opinions in the comments below!

 

About The Author

Kaasvi Bhatia is a Media Studies student at the University of British Columbia with a passion for digital storytelling and content creation.
Outside of work, Kaasvi enjoys playing tennis, running, and spending time with her friends.

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