Tax Free Day

You have all heard of it, at least if you live in Canada. It is called Tax Free Day. The Fraser Institute, a conservative 'think tank', has calculated all the taxes that we Canadians pay, federal, provincial, municipal, and regional district, and come up with how long we work each year just to pay all those taxes. When we have paid all of them, it is then 'tax free day'. Since calculating this day some twenty years ago, it has slowly advanced every year. This year is an exception. It has moved back three days to June 6. Yes, we work until June 6th to pay taxes and the money we earn for the rest of the year is ours!
There are reasons why it has moved back. Our governments, at least on the federal and provincial level, have lowered some taxes, although hardly enough to make a difference. The biggest reason, according to the Fraser Institute, is the recession. People on average are earning less money and when they earn less, they pay less income tax. Also when they earn less, they spend less and thus pay less in sales taxes. We have found this to be true in our own case. So an improved tax free day, in this case, is small comfort.