Economic Inequality

Thomas Piketty and Gabriel Zucman have developed methodologies for estimating the wealth share of different cohorts over time and across countries. These data present a somewhat different and longer historical picture than Canadian data from the Parliamentary Budget Officer. They suggest that the share of wealth held by the top 1% has gone up steadily over the past half century. (Source: World Inequality Database).

The wealthy are not making money like the rest of us. Capital gains are driving income gains for the richest Canadians. Because capital gains are taxed at a lower rate than employment income, wealthy Canadians—about 4,000 people are in the top .01%—are earning more and paying proportionately less. Income inequality is up in Canada, but those numbers understate the problem because the wealthy are relying on investment income, not labour income. (Source: Statistics Canada).

Canada has experienced strong economic growth for decades, but the income of those at the top has been rising much more quickly than that of those in the middle or bottom of the income distribution. The wealthiest Canadians are capturing a disproportionate share of the benefits from economic growth.   (Source: Statistics Canada).