Wednesday, February 17, 2016

Many Canadians Courting Insolvency

 CP Finances

Canadian Press is reporting a recent IPSOS Reid survey showed that nearly half of those surveyed were $200 per month from being insolvent. In other words should their expenses increase or their incomes decrease by as little as $200/mo. half of Canadians would be insolvent.

The survey found that nearly 25% of the 1,582 people surveyed were already not able to pay their bills and debt payments. Any increase in interest rates could move 31% of those surveyed towards declaring bankruptcy.

The survey was conducted shortly after the Parliamentary Budget Office issued a report saying that Canada has experienced the largest household debt increase relative to income of any G7 country since 2000.

Ipsos Reid conducted the poll about a week after the Parliamentary Budget Office issued a report on Jan. 19 that said Canada has seen the largest increase in household debt relative to income of any G7 country since 2000.

Since this information was gathered via an online survey and is not a random sample it is not necessarily representative of the whole population.

It seems that all levels of government think that 'their' increases can be absorbed by the general taxpayer. However, cumulatively these increases can add up to $200/mo in short order. Civic taxes, MSP premiums, ICBC, Hydro, gas taxes, transit taxes, hospital, library, regional district, ferry fares, groceries etc. etc.

As part of the current Core Services Review, I would hope there is some data gathering that can determine just how many tax dollars the local economy can AFFORD, rather than just thinking about what services we all need and the want.


1 comment:

  1. So, I guess, there's no more for the bureaucratic/ politician reasoning - we're simply raising taxes and getting money from "wherever" it comes from. There's no wherever any longer!


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