Good post by @laceydoilies: for the Canadian situation…
In reality when all is said and done the Average Canadian gives away close to 50% of their income to some level of Government (Federal – Provincial – or Municipal) be it for Income Taxs (Federal & Provincial) – Sales Taxes (Federal & Provincial) or Taxes on Housing, Utilities & Services (Federal, Provincial & Municipal)
As well we have “hidden taxes” that are included in the pricing of some items… such as Gasoline, Liquor and Cigarettes (which Canadian’s fondly refer to as “Sin Taxes”). These hidden taxes is part of the reason that we pay soooo much more for these items than our American Neighbours
Examples: Booze here is aprox 2x the cost as in the USA (ie a Case of 24 Beer = around $ 50). Gasoline is today running around $ 1.28 a Litre in Ontario… which works out to aprox $ 4.84 CDN for a US Gallon (or at today’s exchange rate $ 4.55 US)
“Tax Freedom Day” in 2013 was June 10, 2013… which is used as an illustration to show at what point in the year that one is done paying their taxes… and from that point on the money earned is their own.
To @calisunshine3404: Lol, 13% is pretty much middle of the road here when it comes to Sales Tax… every Province Collects our Federal Goods & Services Tax (a Value Added Tax)… GST is 5% and then each Province can determine their own level of Provincial Sales Tax… PST runs the gamit from a LOW of 0% in Alberta & the Territories (Northwest – Nunavut – and Yukon) to a HIGH of 10% in Nova Scotia.
Alberta & The Territories don’t charge Provicial Sales Taxes due to two reasons…
1 – The primary one being they are RICH in natural resources so they are income rich places
2 – And when it comes to the Territories they also have the element of being very low populated places… people up north pay a lot for Goods & Services as it is because of “shipping costs”
Some Provinces choose to collect these 2 levels of Sales Tax as one line item on a Receipt… in which case they are referred to as the HST = Harmonized Sales Tax
And the Province of Quebec, compounds the tax when they do their calculation… essentially collecting tax on not just the original purchase price of the item, but on the after tax price with GST added in (mind you that brings their combined rate as applied to 14.975% so not quite as bad as Nova Scotia).
So where does all this tax money go ?
Well a fair bit of it does support our social programs that Canadians enjoy like Medicare (hence too why “Sin Taxes” exist… if you drink or smoke the thinking is the more likely you’ll be to need medical help eventually)
Hope this helps,