Comment 102336

By kevlahan (registered) | Posted June 11, 2014 at 12:53:31 in reply to Comment 102329

Capital (i.e. wealth) includes pension holdings, so the wealth breakdown already includes things like public sector pension funds allocated to individuals. Capital includes anything that can be irrevocably exchanged and is primarily made up of financial capital, real estate and industrial capital. For most middle class Canadians their only real capital is their residence (unless they have a well-funded pension plan). The poorest 50% have essentially no net capital (once debts are included). The favourable tax treatment of income from capital (compared to from labour) is an important part of inequality.

In the United States 70% of capital is held by the wealthiest 10%, while even in Scandinavia the proportion is 50%, while only 5% of capital is held by the poorest 50% in the US. Capital inequality is far more severe than wage inequality (35% and 25% respectively for richest 10% and poorest 50% in the US).

The top marginal tax rate in Ontario has dropped dramatically since 1980, http://ywcacanada.ca/data/research_docs/... charts 8 and 9 and we all remember the 2% cut in GST.

Dividends and other investment income are taxed at much lower rates than wages, which again benefits the wealthy (that is why Romney paid such a low overall income tax).

Comment edited by kevlahan on 2014-06-11 13:03:50

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