May 19 is Tax Freedom Day-but there's no reason to celebrate

May 19, 2020 is Tax Freedom Day, which represents the total yearly tax burden imposed on Canadian families: If you had to pay all your taxes up front, you’d give government every dollar you earned before May 19. This year, the average Canadian family will pay 37.7 per cent of its income in taxes. Ordinarily Tax Freedom Day comes much later in the year—last year it fell on June 8th—but, an earlier Tax Freedom Day this year is nothing to celebrate, since it’s not the result of governments reducing taxes. Instead, Canadian families have been significantly impacted by the economic shutdowns in response to COVID-19. When the economy slows and incomes decline, Canadians are bumped into lower income tax brackets and pay a smaller percentage of income in taxes. Canadians have also reduced their spending, which means less sales taxes are being paid.