Cost of Living Has Canadians Signing: O… No Canada!

The raising concerns about affordability, taxation, political decisions, immigration, and corporate profits during and after the pandemic touch on complex and broad issues in Canada, making many Canadians wonder if they can still afford to live… in their own country.

1. Affordability and Rising Costs in Canada

Living in Canada has indeed become more expensive in recent years. Several factors contribute to this:

• Housing Affordability: The housing crisis in Canada has been widely reported, with home prices soaring. According to a report by the Canadian Real Estate Association (CREA), the average price of a home in Canada was around $716,000 in 2022, which is significantly higher than the global average. Mortgage interest rates have risen alongside these prices, making homeownership even more difficult for many Canadians.
• Renting: Rent prices have also increased sharply. In Vancouver, for instance, the average rent for a one-bedroom apartment is around $3,000 a month. Toronto is similarly expensive, making it increasingly unaffordable for many people.
• Cost of Living: Beyond housing, the general cost of living—groceries, utilities, transportation—has risen. Canada’s inflation rate peaked at 8.1% in 2022, according to Statistics Canada, driven by the global supply chain crisis, the pandemic, and rising oil prices.

2. Tax Burden

The tax burden on the average Canadian is substantial. After factoring in both federal and provincial income tax, along with consumption taxes (GST, HST), and additional taxes on goods and services, it’s clear that a large portion of income goes to taxes.

• Federal and Provincial Income Tax: In Canada, federal income tax rates in 2023 range from 15% to 33%, depending on income. Provincial tax rates vary, with top rates as high as 25.75% in Quebec.
• Consumption Taxes: Canadians also pay GST (Goods and Services Tax), which is 5%, and in many provinces, HST (Harmonized Sales Tax), which combines GST with provincial sales taxes. For example, Ontario has a 13% HST, while British Columbia has a 12% combined tax (5% GST and 7% provincial tax).

After accounting for all these taxes, the average Canadian keeps at least 45 to 55 cents on every dollar earned—this figure fluctuates depending on income, province, and spending habits.

The government is essentially “double-dipping”—and more—when it comes to vehicle sales. When you buy a new vehicle, you’re required to pay taxes on the full price. However, if you decide to sell that vehicle, the next buyer, even though they’re purchasing a used car, must also pay taxes on its current value. If that same vehicle is sold five times throughout its lifespan, the government collects taxes on it each and every time. In other words, the government profits repeatedly from the same vehicle, taxing it multiple times over its lifetime.

3. Emigration from Canada

Many Canadians are indeed considering or have already left the country, largely due to affordability challenges.

• Canadian Emigration: In 2021, over 55,000 Canadians emigrated to other countries, with destinations like the U.S., Europe, and even Latin American countries. By 2023, some estimates suggest that over 100,000 Canadians left in search of more affordable living conditions and job opportunities abroad and analysts expect these numbers to climb even more in 2024.

Factors like unaffordable housing, higher taxes, cost of living, medical unavailability and delays, and fewer job opportunities have pushed many to seek better living standards elsewhere.

4. Political Decisions and Their Impact

There has been a precedent-setting negative trend and serious political issues set by the past two Federal Governments. Under Stephen Harper and Justin Trudeau:

• Harper’s Anti-Union Policies: Stephen Harper’s government was criticized for its attempts to weaken labor unions, including passing laws that were later deemed unconstitutional. These included Bill C-377, which imposed heavy reporting requirements on unions. In 2015, the Supreme Court of Canada struck down parts of these laws, and some of them were reversed by Justin Trudeau’s government.
• Trudeau’s Immigration Policies: Trudeau’s administration has indeed increased immigration significantly, with Canada targeting 395,000 new immigrants per year by 2025 (that number is reduced from his original plan to add 500,000). Many criticize the government for focusing resources on new immigrants while not addressing the needs of Canadians, especially seniors, who live on fixed incomes.

And things aren’t looking promising as Conservative leader Pierre Poilievre and NDP leader Jagmeet Singh are not showing signs of strong leadership either. Poilievre still refuses to get his security clearance while Singh has been flopping back and forth with his support for Trudeau.

5. Support for Immigrants vs. Senior Citizens

There’s debate about the level of financial support given to new immigrants versus senior citizens who have worked in Canada their entire lives.

• Immigrant Support: New immigrants, particularly refugees, receive initial support from the government, which can include monthly housing allowances, health coverage, and other financial aid. For example, a refugee family of four could receive between $1,200 to $1,500 per month in social assistance, though this varies by province and type of immigrant status.
• Support for Seniors: In comparison, the Old Age Security (OAS) and Guaranteed Income Supplement (GIS) for low-income seniors provide an average of about $700 to $1,000 per month. Many feel that seniors, who have paid taxes and contributed to the economy and infrastructure all these years, receive too little in comparison to new arrivals who have not contributed anything to this country in their life time.

6. Corporate Profits since the Pandemic

During COVID-19, certain sectors and companies saw record profits, which has been a source of frustration for Canadians:

• Loblaw Companies: Loblaw reported a 30% increase in profits in 2021, while prices for groceries continued to climb. Critics argue that this is an example of corporate greed during a time of crisis.
• Price Increases: A viral story in 2023 compared prices at Walmart from 2020 to 2024. A gallon of milk, for instance, was $3.98 in 2020, but by 2024, the same gallon cost $6.50. Now apply this exercise on most products. This reflects the broader trend of inflation, but critics argue that corporations are taking advantage of the situation to maximize profits. Salaries and pension indexation are far from following those trends.

And that’s not counting utilities like electricity, cable, phone, the gas we put in our vehicles and other day to day expenses.

7. Lack of Basic Services—No Doctors, No Care

On top of it all, we can’t even get the most basic services we were promised. After years of paying taxes into the healthcare system, neither of us can even find a family doctor. And we’re not alone—6.5 million Canadians don’t have a family doctor, and seniors are among those hardest hit. In our age group, access to healthcare is critical, yet we feel abandoned by the system we helped build.

According to Statistics Canada, nearly 15% of people over the age of 65 don’t have a regular doctor. Many of us rely on walk-in clinics or emergency rooms for basic care, which isn’t sustainable as we age. We’ve seen friends and family members wait months for specialist appointments, or even for life-saving surgeries. The promises we were once given about quality healthcare in our retirement seem like a distant memory.

From the Perspective of a Senior Citizens Couple

We’ve spent our entire lives contributing to this country—paying taxes, working hard, and doing our part to build a better Canada for future generations. We never thought we’d find ourselves in a position where we would question whether we could afford to stay here, in the country we’ve called home for decades. But now, as seniors, the reality is setting in: living in Canada has become too expensive, and the services we once thought would support us in our old age are slipping out of reach.

We paid our taxes dutifully, contributing to the system, trusting that when the time came, we would be taken care of. But now, as we look at the rising cost of living and were our money is being spent, we’re asking ourselves—can we even afford to stay here?

Conclusion

Living in Canada has undeniably become more challenging for many due to rising costs, heavy taxation, and political decisions that affect affordability. Many Canadians are leaving, and more are considering doing the same. Seniors and long-time taxpayers, in particular, feel under-supported compared to new immigrants, while corporate profiteering during the pandemic has fuelled anger. The concerns about a growing divide between the rich and poor are reinforced by these trends.