Revenue analysis: mandatory contributions and fees should be considered, along with income tax, when calculating non-discretionary household expenditures in Québec

Québec, June 7, 2016 – In 2013, an average of 17% of Québec households’ total revenue was spent on income tax, but this percentage increased to 26% when other mandatory contributions and fees were taken into consideration. This observation was drawn from an article in the bulletin Données sociodémographiques en bref called “Aperçu des cotisations et frais obligatoires s’ajoutant à l’impôt des ménages Québécois,” published today by the Institut de la statistique du Québec.

The mandatory contributions and  fees to be considered, in addition to income tax,  comprise the following eight items: employment insurance contributions; Québec pension contributions; registered pension or employer-sponsored pension contributions; union dues and professional association fees (including professional liability insurance premiums); childcare costs incurred to hold paid employment; Québec parental insurance plan contributions; support payments; and medical fees.

Households from the group of the 20% poorest spend 2% of their total revenue on income tax and 7% on other contributions and fees, while, inversely, households from the group of the 20% wealthiest spend 23% of their revenue on income tax and 10% on other contributions and fees.This represents, on average, 33% of the revenue of the wealthiest households versus 9% of that of the poorest.

Households for which the principal earner is aged between 30 and 64 years have the highest proportion of revenue spent on income tax and other contributions and fees (18% and 10%, respectively), followed by households for which the principal earner is under 30 years (13% and 10%), and then for which the principal earner is 65 years or over (12% and 6%).

Between 1999 and 2011, the income tax share for the total revenue of Québec households dropped by 4 points (from 21% to 17%), while the share for other contributions and fees increased by 2 points (from 7% to 9%).

 


The Institut de la statistique du Québec produces, analyzes and disseminates official, objective and quality statistical information on various aspects of Québec society. It is responsible for carrying out all statistical surveys of general interest. The relevance of its work makes it a strategic ally for decision makers and all those wishing to learn more about Québec.

Sources:

  • Stéphane Crespo
    Analyst
    Phone: 418-691-2406, Ext. 3105
  • Information and Documentation Centre
    Phone: 418-691-2401
    or 1-800-463-4090 (toll free in Canada and the United States)
  • Twitter account: http://twitter.com/statquebec