The OECD Economic Survey of Canada released today calls for tax reforms which would increase government revenues while also reducing inequality, specifically calling for changes to preferential treatment of stock options.
Noting that income inequality in Canada is above the OECD average and has been rapidly rising in recent years, the organization states that "there is also scope for the federal government to increase efficiency and reduce income inequality by further reducing tax expenditures that benefit relatively higher income households, such as... preferential treatment of stock options” (p. 38).
Posted by NationBuilder Support · June 10, 2014 4:04 AM
Detailed analysis of Conservative proposal reveals deeply unequal scheme
OTTAWA—Two out of three families targeted by the Conservative income splitting plan would receive less than $500 while fewer than 4% of such families – some of the wealthiest in Canada – would be eligible for a benefit in excess of $5,000, a new study by the Broadbent Institute has found.
Employment Minister Jason Kenney says the Harper government has no intention of backing away from its income splitting pledge, despite a new report concluding the plan would exacerbate income inequality and bestow the most benefits to the West.
During the ordinary working of capitalism – absent the extraordinary Great Wars and Great Depression of the first half of the twentieth century – inequality, as manifested in the distribution of wealth, rose over time and promises to continue to do so.
As is well-known, the proportion of women who are active in the paid work force has grown very rapidly since the 1970s, transforming the workplace and society as a whole in the process. The rising participation rate of women was a major economic force over the past three decades in that it kept real family incomes afloat despite stagnant, if not falling, male wages.
One can think of the changes underway as renovations to what former Immigration Minister Jason Kenney liked to describe as the “house” of the Canadian nation.
Showing how seemingly disconnected floors and rooms of the "house" are related reveals a troubling blueprint of change — a renovation that will overhaul the very architecture of rights and membership in Canada.
A widely-reported study by the New York Times shows that middle-class Canadians now have higher after-tax incomes than middle-class Americans, and that Canadian middle-class incomes, adjusted for inflation, have been rising significantly over the past decade.
The facts cited in the original article are not in dispute. The median per-person income in the United States (half earn more and half earn less) has stagnated for the past decade, and the income share of the top 1% in that country has continued to rise to record-high levels.
But this does not mean, as the Harper Conservatives and right-wing pundits have been quick to claim, that all is well with the Canadian middle class.