The average Family income in Ontario in 2010 was $71,540.00 according to Stats Can. However the Ontario Ministry of Finance states that Primary Family income in 2012 is $32,776. So lets say the average of the two are $60,000.
As per Stats Can Canadian households spent an average of $53,016 on all types of goods and services in 2010. Of this total, shelter accounted for 28.3% of spending, transportation for 20.7%, and food, 14.0%. Spending on clothing represented 6.5% of the total, health care, 4.1%, and communications, 3.3%.
The average person uses 1,054.95 liters (281.32 gallons) of gas per year. According to Petro Canada taxes in Canada represented, on average, 32% of the pump price. So at $1.21 per liter you are paying $.0.38 per liter in tax, $408.47 per year. As most families need two cars let’s use $204.00 for the second car so a total of $612.00 per year.
Feel like a bottle of wine a week, a dozen beer or a bottle of booze – This will cost you up to $1,040 in tax depending on your libation.
If we again use Stats can numbers $14,844.00 is spent on housing and $7,634.00 on food, both non-taxable. However this leaves $30,538 of “expenses” that are subject to HST ($3,538) so you really have only $27,000.00 to spend.
Well let’s add up the real numbers… from your $60,000 you will pay $18,670 in income tax, $612.00 in Gas Taxes, $1,040. In liquor Tax and $4,538 in HST. TaDa $24,680.00 combined taxes.
According to the Retail Council of Canada “The reality is that suppliers of products — those where you would tend to see the greatest difference in pricing — will charge Canadian retailers up to 50% more to buy those products than they charge retailers in the United States.” you know that these are passed through to the consumer.
Even if we completely forget the 300% difference in milk, 200% eggs, 100% bread prices the average U.S. consumer pays an average of 35% less than the Canadian consumer for the same goods.
An astute family of Cross-Border shoppers reading this Blog would have easily save $10,000.00 in purchases and another $2,500.00 in sales taxes.
A $12,500.00 Merry Christmas from 2sidesof49
* Before tax prices – Average U.S. Sales Tax is 9.6% (Vertex Inc) so you can add another 4% to the above cost differences.