HOHO Holy Crap

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

retail 2012


* Before tax prices – Average U.S. Sales Tax is 9.6% (Vertex Inc) so you can add another 4% to the above cost differences.

About 2sidesof49

This Blog is for all Canadian Cross-Border Shoppers wanting to maximize their returns on their U.S. shopping trips. Visit 2sidesof49.com for tips and tricks and links to our partners websites, blogs and products. Also check out my book The Canadian Cross-Border Shopping Guide - guaranteed to save you money!
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