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Many Canadians do not really understand the system of taxation that exists in our country. They simply trust and accept the notices they receive from their accountants or the CRA. It can be frustrating and at times confusing.

Canada's taxation system is similar to that of the United States. The countries have similar economic systems, with trade ties and both have legal systems based on British common law. However, there are several noteworthy differences in the tax laws. The tax rates in Canada are usually higher than in the United States. In Canada, tax revenue makes up 38.4 percent of the GDP, while in the United States, the tax revenue makes up 28.2 percent. This is largely due to the differences in the way each government spends money.

One of the biggest differences is the way each government funds health care. In Canada, the government covers the basic health-care expenses of all of its citizens and lawful resident aliens though it's Medicare program. The more specialized types of health care, such as dentistry, are either partially covered by the government or not covered at all (depending on the procedure in question). In total, the Canadian government covers up to 70 percent of all health-care expenses per year. By contrast, the United States covers the medical expenses of only the elderly and the poor through the Medicare and Medicaid programs, respectively. Overall, it covers up to 50 percent of their medical costs.

Note that, although the Canadian government's health spending leads to larger taxes, Canadian taxpayers don't have to spend as much on health care as their American counterparts. This doesn't quite negate the increased tax burden, but it does make it easier to bear.

TONY TODAY:

Why are taxes so high in Canada? Many additional taxes that Canadians pay; such as, federal and provincial sales taxes, municipal property taxes, fuel taxes and tobacco and liquor taxes are not progressively based on income. It is estimated that the average Canadian family pays about $4,532 in sales taxes per year and $3,436 in property taxes. which are added to the average family’s tax bill.

Likely the most hated type of tax in Canada are the sales taxes, since they show up every time people make a purchase. for government; while 34.0 per cent of the budget went to paying for the necessities of life (food, clothing, and shelter). The total tax bill has grown to the point where families are now paying more in taxes than they do for basic necessities. A common is consumption is that property taxes are a liability solely of the owner. In reality, even renters pay these, included in their rent