Sucking families dry: A breakdown of where your tax dollars go
By Tom Brodbeck ,Winnipeg Sun
First posted: Sunday, December 11, 2011 09:28 PM CST | Updated: Sunday, December 11, 2011 10:39 PM CST
You’ve paid your taxes to the provincial government this year. So now it’s time to find out how all the hundreds — or even thousands — of dollars you sent to Broadway were spent over the past 12 months.
We normally break down government spending for readers using big-picture numbers, like tens of millions for this and a few billion for that.
But for the first time we’re breaking down where your tax dollars were expected to go in 2011 — by category — for an average Manitoba family of five.
In other words, how much did the family pay in taxes and where specifically did that money go?
We use a two-income family of five who earned $75,000 this year. That family is projected to pay an average of $5,615 in what we call major taxes to the
province — income taxes, the provincial sales tax and gasoline tax. That doesn’t include what the family pays in federal taxes.
We use the provincial government’s own base numbers from their 2011 budget. And we break down the departments and categories into 26 sections
so you can see exactly where your tax dollars went.
Health care, no big surprise, was by far the most expensive item on the government bill. The family of five paid an average of $2,437 to Manitoba Health, representing 43% of the total taxes paid to the province.
Second was education — public schools, not including post-secondary education — came in at $786. And third was family services, which includes child welfare costs.
Perhaps most stunning is how debt servicing — the interest taxpayers pay on government’s growing debt — is the eighth most expensive category out of the 26. The average family of five was projected to pay $128 to the province just to service the debt.
That’s more than the $112 the family paid for the province’s Department of Agriculture.
Of course, the province draws revenues from other sources beyond the major taxes we pay. There are other discretionary taxes and levies Manitobans pay to the province, including tobacco taxes, the Land Transfer Tax and liquor taxes. The province also takes in hundreds of millions a year in gambling profits.
The single biggest source of revenue, though, doesn’t come from Manitoba at all. It comes from the federal government, who — through a myriad of transfers to the province — covers about 34% of the provincial government’s budget. That includes transfers for health care, social services and post-secondary education. It also includes a lump sum of about $2 billion in equalization payments from Ottawa. In other words, we wouldn’t have the standard of living we have in this province were it not for net contributors like Saskatchewan and Alberta, who do not receive equalization payments.
Meanwhile, don’t expect to pay any less in provincial taxes next year. The government is spending about a half-billion dollars more than it’s taking in right now. So it’s unlikely the family of five will see any tax relief in 2012. If anything, they may be asked to pay a little more...............................http://www.winnipegsun.com/2011/12/11/s ... dollars-go


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Less Ottawa.