Income Inequality: The Big Split
BroadbentInstitute.ca – issue/income-inequality/bigsplit – income splitting’s unequal distribution of benefits across Canada
June 10, 2014. Editor
Fourteen per cent of all income in Canada is now received by the top one per cent, up sharply from eight per cent in the 1980s. For every $1 increase in national earnings over the past 20 years, more than 30 cents have gone to the top one per cent, while 70 cents have had to be shared among the bottom 99 per cent.
There remain stubborn earning gaps across genders, worrisome rates of youth unemployment, and continued economic marginalization of Aboriginal groups and other ethno-cultural communities.
Not only is this unfair, but it also translates into less opportunity and social mobility, and has a corrosive effect on the functioning of our democracy.
This is not the society Canadians want, yet successive Canadian governments have enabled it through cuts to social services, the weakening of unions, and the introduction of policies that hurt Canadian workers.
To reverse the trend, progressives must get the economy working again for more people. That means investing in new, innovative industries that promise well-paying and secure jobs. It means reigning in corporate excess. It means providing supports for those whose employment is precarious. And it means pushing for fair wages, a fair tax regime, and the expansion of investments in our public services.
The Big Split: income splitting’s unequal distribution of benefits across Canada
A study commissioned by the Broadbent Institute finds that the majority of Canadian families with children under 18 would get no benefit at all from the Conservatives’ income splitting scheme – despite being the express target of the policy.
Download the Report:
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