Advocacy, Thought Leadership
Are We Paying More to the Government Than to Live?
BY SHONDELL SABAD, SENIOR STRATEGIC ADVISOR AT THE ALBERTA ENTERPRISE GROUP
The Fraser Institute’s Canadian Consumer Tax Index 2025 delivers a startling message: in 2024, the average Canadian family earned ~C$114,300 and paid ~C$48,300 in taxes—that’s 42.3% of their income, more than they spent on food, housing, and clothing combined (35.5%).
This raises two pressing concerns:
- Tax Inflation vs. Life Inflation
Taxes are rising faster than essential living costs – despite government promises of affordability. - Value for Money
Nearly half of Canadians believe government services provide poor value for the taxes they pay.
Since 1961, taxes have surged by 2,784%, far outpacing inflation (925%) and even housing and food. The gap between earnings and true affordability is growing, not because of market prices, but because of rising government costs.
At Alberta Enterprise Group, we continue to advocate for responsible, low-cost government that empowers families and private enterprise. Tax policy should be a foundation for opportunity, not a ceiling on ambition.
We’ve previously praised Minister Dale Nally for his leadership in red tape reduction, and Alberta’s progress stands as a model, proving that smarter governance, not bigger government, is the path forward.