The Fraser Institute has just released its Canadian Consumer Tax Index, 2010, and the news is mixed. Although the total dollar value taxed went down in 2009 for the first time since the early 1990s, most of this was due to the recession. In the meantime, governments resorted to deficit spending--a move that is simply a deferred tax increase.

The big picture is worse, especially compared to past generations.

The average Canadian family now spends more of its income on taxes than it does on the basic
necessities such as food, shelter, and clothing. In 1961, the average family used 56.5 percent of its
income on basic necessities, while only 33.5 percent of the family’s income went to taxes. In 2009,
the proportion of income consumed by taxes had increased (to 41.7 percent), while the fraction of
income spent on food, shelter, and clothing had dropped dramatically (to 37.1 percent).

Clearly, the effort to balance the budget should focus on spending reductions, not higher taxes.