D-Day for income taxes quickly approaches and Canadians from coast-to-coast are grappling with the stress and anxiety of completing their income tax returns on time. As we struggle with pencil in hand, calculator close by and our bin of tax receipts -- for the more computer-literate it may be QuickTax or some other tax program -- it’s important to remember that income taxes form only a portion of the total tax bill imposed on us by the federal, provincial, and local governments across this country.

Granted personal income taxes are the single largest tax we pay. In 2003, the average Canadian family earning roughly $74,000 in income paid a little over $12,000 in income taxes, representing 16 percent of their income. Personal income taxes represent about one-third of the total tax bill of Canadians.

The two other taxes that Canadians are also dealing with right now are the Canada Pension Plan (CPP)—Quebec Pension Plan if you’re a resident of la belle province—and Employment Insurance (EI). For one reason or another, Canadians are forced to prove that they paid the correct amount of CPP and EI at income tax time. The average Canadian family paid some $7,544 in total payroll taxes in 2003, including both CPP and EI.

Payroll taxes represent the second largest component of total taxes. Together, income taxes and payroll taxes represent well over half of the total tax burden of average Canadians. Put differently, as you’re completing your tax filing, take a quick look at the total amount of income tax, CPP contributions, and EI payments you made and it’s roughly one-half of the total tax bill incurred in 2003.

There are two other relatively visible taxes that Canadians pay, thankfully not at the same time as our income tax bill: property taxes and sales taxes. The average Canadian family paid about $2,500 in property taxes in 2003. One of the common misnomers is that only homeowners pay property taxes. The truth of the matter is that property taxes for renters are included in their monthly rent, so in one way or another we all pay property taxes. For homeowners, at least the cost of property taxes is transparent since we each receive an annual bill.

Sales taxes are visible whenever we make a purchase upon which the tax is implied. It is, however, difficult, if not impossible, given the costs of tracking just how much we pay in sales taxes over the course of a year. Our estimates indicate that the average Canadian family pays about $6,000 a year in sales taxes, representing nearly 17 percent of their total tax bill. Sales taxes are second only to income taxes and payroll taxes in value.

Unlike personal income taxes, payroll taxes, property taxes, and sales taxes, which are all visible to a certain degree, there are a host of taxes that Canadians pay but do not see. For instance, profit taxes amounting to almost $2,800 in 2003 were assessed indirectly on average Canadian families. Amusement and automobile taxes, amounting to $2342 and $986, respectively, were also imposed on average Canadian families and in most cases are not readily transparent. Finally, average Canadian families were assessed about $316 in import duties in 2003, another cost which is not easily discernable.

In total in 2003, the average Canadian family faced a tax bill of $35,808 against income of roughly $73,700. Put differently, the total taxes imposed on the average Canadian family consumed over 48 percent of income.

As we all diligently attempt to complete our personal income tax returns, it is critical to understand that the taxes delineated in our income tax returns represent only a little more than half our total tax bill. Understanding our total tax bill will enable each of us to better assess whether or not we as taxpayers are receiving value-for-money. Our hope is that such understanding will lead to more pressure for real and meaningful tax relief for Canadians in the future. At the very least we should be able to hold our politicians much more accountable for the resources they extract from us.