Canadian Families Now Spend More On Taxes Than Basic Necessities, New Study Finds

Canadian families are spending a larger share of their income on taxes than on some of the most basic household necessities, according to a new Fraser Institute study examining the tax burden over more than six decades.

The 2026 edition of the Canadian Consumer Tax Index estimates that the average Canadian family earned $121,111 in 2025 and paid $50,721 in total taxes. That represents 41.9 per cent of household income.

By comparison, the study estimates that housing, food and clothing together accounted for 36 per cent of the average family’s income.

The Fraser Institute’s calculation includes considerably more than personal income tax. Its measure incorporates federal, provincial and municipal taxes, including payroll, sales, property, fuel, vehicle, import and other taxes.

The report says the shift is particularly striking when compared with 1961.

At that time, the average Canadian family earned $5,000 and paid $1,675 in taxes, equivalent to 33.5 per cent of income. Basic necessities, meanwhile, consumed 56.5 per cent of family income.

Since then, the institute calculates that the average family’s total tax bill has increased by 2,928 per cent. Shelter costs increased 2,349 per cent over the same period, while food costs rose 952 per cent and clothing costs increased 526 per cent. The Consumer Price Index increased 946 per cent.

The findings come as affordability remains a major concern for Canadian households. Statistics Canada reported that the median after-tax income for Canadian families reached $108,900 in 2024, while 24 per cent of Canadians lived in households that experienced some form of food insecurity that year.

Questions About Ottawa’s Investment Plans

The tax findings also come amid debate over the federal government’s plans to invest billions of dollars in the economy through the new Canada Strong Fund.

Prime Minister Mark Carney announced the fund in April as Canada’s first national sovereign wealth fund. Ottawa plans to provide an initial $25 billion and have the fund invest alongside private-sector investors in areas including energy, critical minerals, agriculture, infrastructure and other strategic industries.

The government says the fund will operate at arm’s length from Ottawa and be managed by a professional board and chief executive. It also intends to create a retail investment product allowing Canadians to invest directly in the fund.

Critics, however, have raised concerns about the fund’s structure and the use of borrowed money.

A report from the Montreal Economic Institute argues that the Canada Strong Fund bears similarities to the United Kingdom’s National Wealth Fund, an initiative with which Carney was involved before becoming Canada’s prime minister.

According to the report, the British fund has recorded a cumulative return of minus 24.9 per cent over its first two years of operation and reported losses of £152.2 million in the most recent year cited. The report also says it has fallen short of its target for attracting private investment.

The analysis argues that government-backed investment funds can face risks when political priorities influence investment decisions rather than conventional profit-and-loss considerations.

The federal government maintains that the Canada Strong Fund is designed to operate on a commercial basis and generate market-rate returns for Canadians.

For Canadian households, the combination of rising tax obligations, housing costs and other living expenses leaves a broader question about how much of each additional dollar earned is available for everyday spending.

The Fraser Institute study’s central finding is that the balance between taxation and basic household necessities has changed dramatically since the 1960s, with taxes now representing the largest of the two categories for the average Canadian family.

New Lightning-Started Wildfires Raise Concern Near Sayward And North Island

A cluster of new wildfires has been reported across northern Vancouver Island, including several fires in the region north of Gold River and additional lightning-caused fires near Sayward.

Three new wildfires were discovered Friday evening in the Sayward area, contributing to a total of nine active wildfires reported across Vancouver Island at the time. The fires were believed to have been sparked by lightning during recent thunderstorms.

The new activity came just a day after four other small wildfires were discovered north of Gold River.

According to reports, the four fires north of Gold River were discovered Thursday, Aug. 13. Three were clustered in the area north of Gold Muchalat Park, while another was located between Gold Muchalat Park and Strathcona Provincial Park. Each was estimated at approximately 0.009 hectares.

All four Gold River-area fires were listed as out of control by the BC Wildfire Service. The fires were in relatively remote terrain, and wildfire crews and aircraft were being used to assess and respond to the new starts. Reports identified lightning as the suspected cause of the three fires in the Gold River area, while the cause of the fourth remained under investigation.

The concentration of new fires follows a period of thunderstorms and dry lightning across parts of Vancouver Island. While many of the newly reported fires remain very small, their locations in forested areas are being closely monitored because conditions remain favourable for fire growth.

The latest activity also adds to a growing number of fires being tracked across the Island. At the time of the reports, two other Vancouver Island wildfires were listed as being held, while the new starts near Gold River and elsewhere remained under active monitoring.

For residents in Sayward and surrounding communities, the developments are a reminder that lightning can create new wildfire starts well after a storm has passed. Smoke or a wildfire spotted in the backcountry should be reported promptly to the BC Wildfire Service.

The situation remains fluid, with wildfire conditions and fire status subject to change as crews assess the new incidents.

Three Arrested in Port McNeill Drug Trafficking Investigation After Drugs, Guns and More Than $100,000 Seized

Three people have been arrested following a drug-trafficking investigation in Port McNeill that resulted in the seizure of suspected illicit drugs, firearms, cash, contraband tobacco and vehicles.

The investigation was conducted by the Port McNeill RCMP in partnership with the Island District General Investigation Section (GIS). Police executed multiple search warrants at residences and vehicles in the North Island area as investigators gathered evidence related to suspected drug trafficking.

Among the items seized were more than $100,000 in cash, approximately one kilogram of suspected cocaine and significant quantities of suspected ketamine. Police also seized three firearms and more than 100 cartons of contraband tobacco, along with vehicles believed to be connected to the investigation.

Port McNeill RCMP Detachment Commander Sgt. Erin Stevenson described the seizures as a significant disruption to suspected drug-trafficking activity in the region. The combination of drugs, cash and firearms, police said, demonstrates the serious nature of the criminal activity under investigation.

Investigation Spanned the North Island

The investigation involved coordinated work between local RCMP officers and the Island District GIS, with search warrants carried out at multiple locations and involving vehicles connected to the investigation.

The arrests and seizures are part of ongoing efforts by police to identify and disrupt drug-trafficking networks operating in smaller communities across Vancouver Island.

Police have not indicated that charges have been finalized against the three people arrested. As the investigation continues, the circumstances surrounding the suspects and the seized property remain subject to the criminal justice process.

A Broader Pattern of Drug-Trafficking Investigations

The Port McNeill seizure follows other significant drug-trafficking investigations on Vancouver Island.

In February 2025, Port Alberni RCMP executed search warrants at two residences with assistance from the Emergency Response Team, Police Dog Services, BC Highway Patrol and the Integrated Impaired Driving Unit. Three Port Alberni residents—two men and one woman—were arrested, and police seized a large quantity of suspected illicit drugs, cash and contraband cigarettes. That investigation was separate from the current Port McNeill case.

More recently, a four-day police deployment on southern Vancouver Island in early 2026 involved the Combined Forces Special Enforcement Unit of British Columbia working alongside West Shore RCMP, Saanich police and Victoria police. The operation generated more than 27 investigative files, resulted in seven arrests and led to the seizure of approximately $14,500 in cash and about one kilogram of suspected illicit drugs, including fentanyl, cocaine and methamphetamine.

The latest Port McNeill investigation adds another significant seizure to that broader picture, with more than $100,000 in cash and multiple firearms recovered alongside suspected drugs.

For North Island communities, the investigation is another reminder that organized drug trafficking is not limited to major urban centres. Police continue to rely on investigations, search warrants and cooperation between specialized units to identify those believed to be involved in the distribution of illicit drugs.

The Port McNeill investigation remains ongoing.

Small Business Group Urges BC Government To Scrap Planned PST Expansion

A multi-party legislative committee is recommending that the B.C. government cancel a planned expansion of the Provincial Sales Tax to a range of professional services, a move welcomed by the Canadian Federation of Independent Business (CFIB).

The Select Standing Committee on Finance and Government Services made the recommendation as part of its consultations for the provincial government’s 2027 budget. The recommendation comes less than two months before the tax expansion is scheduled to take effect on October 1.

The CFIB says extending the seven per cent PST to professional services could add more than $500 million in annual costs for businesses and consumers across B.C.

“We’re hopeful that the government will adopt the committee’s recommendation and cancel the tax hike scheduled for October 1,” said Ryan Mitton, CFIB’s B.C. director of legislative affairs.

Services that are set to be subject to the expanded PST include accounting and bookkeeping, architectural, engineering and geoscience services, non-residential rental and strata management, commissions on non-residential real estate transactions, and security and private investigation services.

The CFIB says the change could have a particular impact on small businesses, many of which either purchase these professional services or provide them to other businesses.

According to a CFIB survey submitted as part of the Budget 2027 consultation, 80 per cent of businesses surveyed oppose the expansion, while 72 per cent said they are likely to pass the additional cost on to customers.

The organization argues that could result in higher costs for a wide range of businesses and consumers at a time when many are already facing increased operating expenses.

“Growing the economy will help bolster the budget and pay for the services we all rely on,” Mitton said.

The CFIB also pointed to what it describes as an “entrepreneurial drought” in B.C., saying more businesses have closed than opened for five consecutive quarters.

The organization is continuing to collect signatures for a petition calling on the provincial government to cancel the PST expansion. As of August 11, more than 3,500 small businesses had signed.

The committee’s recommendation does not itself cancel the planned tax change. The provincial government would need to adopt the recommendation and change the legislation or regulations governing the expansion.

For small businesses in communities such as Sayward, the issue could affect both the cost of professional services they rely on and the prices charged by businesses that provide those services.

The B.C. government is expected to consider the committee’s recommendations as it develops Budget 2027.

Human-Caused Wildfire Near Port Alberni Brought Under Control

A small wildfire near Port Alberni has been brought under control after crews responded to a brush fire Sunday.

The BC Wildfire Service says the fire was discovered Aug. 9 near Athol Road, just off the Alberni Highway.

The blaze was estimated at approximately 0.009 hectares and is suspected to have been human-caused.

The Cherry Creek Fire Department responded to the fire in the 5000-block of Athol Road and reported that no structures were damaged and no injuries occurred. The department said the fire was extinguished by midnight.

By Monday, BC Wildfire Service had classified the fire as fully out, meaning it was no longer considered active.
The Athol Road fire was briefly one of three active wildfires on Vancouver Island.

The 6.3-hectare Kalpit Lake wildfire, located southwest of Woss, was discovered July 21 and has also now been declared fully out. BC Wildfire Service suspects the fire was caused by lightning.

The only remaining active wildfire on Vancouver Island is the Mount Alston fire, southeast of Woss on the North Island. The 0.009-hectare fire was discovered July 23 and is classified as being held. It is also suspected to have been caused by lightning and is not considered a threat to critical infrastructure or public safety.

Across British Columbia, 105 wildfires were burning as of Monday, including four new fires reported during the previous 24 hours.

BC Wildfire Service continues to warn of the potential for new lightning-caused fires, particularly in the central Interior and Okanagan, as hot and dry conditions persist.

Officials are also cautioning that wildfires can establish and spread rapidly during periods of hot, dry weather. Steep terrain and strong winds can further accelerate fire growth.

Anyone who spots a wildfire is asked to report it to BC Wildfire Service at 1-800-663-5555, *5555 from a cellphone, or through the BC Wildfire Service mobile app.

Helicopter Pilot Injured After Crash During BC Wildfire Operations

A helicopter pilot was hospitalized Tuesday after the aircraft crashed into a lake while taking part in wildfire operations in B.C.’s South Cariboo region.

The crash occurred Tuesday morning as crews were working on the Big Bar wildfire complex near 70 Mile House, according to the BC Wildfire Service.

The pilot was the only person aboard the helicopter and suffered minor injuries. The aircraft crashed into a lake during ongoing wildfire operations, although officials have not released further details about what led to the incident.

The crash comes as the Big Bar wildfire complex continues to threaten communities and property in the region. Wildfires associated with the complex have damaged or destroyed structures on approximately 120 properties near 70 Mile House.

The pilot’s identity, the helicopter operator and additional details about the circumstances surrounding the crash have not been released.

Investigation Underway

The incident is being investigated by multiple agencies, including the BC Wildfire Service, the Transportation Safety Board of Canada and WorkSafeBC.

Officials have not provided a timeline for the investigations or released any preliminary findings about what caused the helicopter to crash.

It is also not yet clear whether the pilot was working for a private aviation contractor supporting wildfire operations or was directly employed by the BC Wildfire Service.
The investigation is expected to examine the circumstances surrounding the crash, including the aircraft’s operation during wildfire response activities.

Further information is expected to be released as the investigations continue.