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Top income shares in Canada: recent trends and policy implications

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  • Michael R. Veall

Abstract

According to Canadian taxfiler data, over the last thirty years there has been a surge in the income shares of the top 1%, top 0.1% and top 0.01% of income recipients, even with longitudinal smoothing by individual using three‐ or five‐year moving averages. Top shares fell in 2008 and 2009, but only by a fraction of the overall surge. Alberta, British Columbia, and Ontario have much more pronounced surges than other provinces. Part of the Canadian surge is likely attributable to U.S. factors, but a comprehensive explanation remains elusive. Even so, I draw implications for policies that might achieve some support from across the political spectrum, including the elimination of tax preferences that favour those with high incomes, the promotion of shareholder democracy and, to maintain Canada's relatively high intergenerational mobility, continued wide accessibility to healthcare and education. Selon les dossiers des contribuables canadiens, il y a eu une brusque montée dans la part des revenus de ceux qui sont dans le premier percentile, et dans les segments 0,01% et 0,001% au sommet de la distribution des récipiendaires de revenus au cours des derniers trente ans, même après un lissage longitudinal par individu au moyen de moyennes mobiles pour des périodes de trois et cinq ans. Les parts de revenus au sommet ont chuté en 2008 et en 2009, mais seulement d’une portion de la brusque montée antérieure. L’Alberta, la Colombie Britannique et l’Ontario ont eu des brusques montées plus prononcées que les autres provinces. Une portion de cette brusque montée est vraisemblablement attribuable à des forces en provenance des Etats‐Unis, mais une explication compréhensive nous échappe toujours. Malgré tout, l’auteur tire de ces données des implications pour les politiques qui sont susceptibles de recueillir le support de groupes tout au long du spectre des points de vue politiques – comme l’élimination de traitement fiscal préférentiel de ceux qui ont de hauts revenus, la promotion d’une démocratie des actionnaires, et, pour maintenir une mobilité intergénérationnelle relativement élevée, une grande accessibilité continué aux soins de santé et à l’éducation.

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  • Michael R. Veall, 2012. "Top income shares in Canada: recent trends and policy implications," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(4), pages 1247-1272, November.
    • Handle: RePEc:wly:canjec:v:45:y:2012:i:4:p:1247-1272
    DOI: 10.1111/j.1540-5982.2012.01744.x
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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