Canada Income Inequality: Broadbent Institute Survey Shows Vast Majority Wants Government To Do Something About The Wage Gap

Posted: 04/10/2012 2:47 pm Updated: 04/10/2012 2:50 pm

The vast majority of Canadians are concerned about the growing gap between rich and poor, and are willing to pay higher taxes to fight it, a new poll shows.

As the debate about income inequality intensifies, observers have often bemoaned that the causes and implications of this trend are too abstract to resonate with average Canadians. But the survey, released Tuesday by the Ottawa-based Broadbent Institute, indicates that most respondents believe that the deepening rich-poor divide could have a negative impact on everything from our standard of living to democratic principles.

“I found the results encouraging,” Ed Broadbent, the former NDP leader who founded the left-leaning think-tank last year, told The Huffington Post. He said concern about income inequality and the desire for government to do something about it “cuts across all partisan persuasions, regional, class differences.”

The poll, based on a telephone survey of 2,000 Canadians by Environics Research, found that 77 per cent of respondents see the growing income gap as “a big problem for Canada that will have a lot of long-term consequences for society.” Though the sentiment was overwhelming among NDP voters, with 89 per cent in agreement, nearly 60 per cent of Conservative voters were also on board.

When asked whether growing income inequality “undermines Canadians values,” 71 per cent of respondents agreed, with the majority indicating that, if left unchecked, the growing rich-poor divide could erode our standard of living (79 per cent); community safety (75 per cent); quality of healthcare and public services (72 per cent); employment opportunities for young people (71 per cent); and democratic principles (67 per cent).

The report said concern about rising income inequality undermining Canadian values was consistent among low-income Canadians and those whose household earnings topped $100,000 per year.

“No matter where you live or how much you make, the growing gap is viewed as decidedly un-Canadian,” the think-tank maintains.

As numerous studies and reports have indicated, income inequality has increased dramatically in Canada in the past 25 years, where the gap between rich and poor is now widening at a faster clip than in the U.S., where the divide remains much more pronounced.

More on income inequality at Mind The Gap:

Calgary's Growing Income Gap A Lesson In Pitfalls Of Unbridled Growth..

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Which Provinces Have The Widest Income Gap?

FULL COVERAGE..

When it comes to tackling the growing gap, the vast majority of respondents said they wanted government to get involved, a make it either a top priority (42 per cent) or a medium priority (47 per cent).

“Contrary to stuff that we’ve been hearing from [right-wing think-tanks] for years, who put out the line constantly that people don’t want governments to intervene, this poll says they expect government to do something about it,” Broadbent told HuffPost.

To that end, more than 80 per cent of respondents were in favour of a tax hike on the wealthiest Canadians, while 64 per cent said they were either very willing (23 per cent) or somewhat willing (41 per cent) to pay “slightly more tax” themselves.

While Broadbent says he expected that the majority of respondents would support taxing the wealthy to fight income inequality, he was somewhat surprised to discover that “all Canadians are prepared to chip in.”

Broadbent is not alone. Some observers questioned the finding on Tuesday, criticizing the construction of the question, which asked respondents if they would be willing to pay higher taxes “if that’s what it would take to protect our social programs.”

[Run] for office on that premise, and [Broadbent] might just discover that most Canadians don’t really think ‘that’s what it would take,’” opined National Post columnist Kelly McParland. “They’d more likely think improved efficiency, less bureaucracy, and more control on costs and salaries would do the trick.”

But according to Broadbent, the survey confirms that Canadians believe that taxation rates and income inequality are connected.

“There is a link and they see it, and are prepared to do something about it,” he said.

It’s a message he hopes will resonate with mainstream politicians, who have until recently shied away from making tax hikes part of their platforms.

“This is new that tax increases are a debatable item,” he said. “It’s time that all politicians paid attention to this.”

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  • Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>

  • Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>

  • Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>

  • Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>

  • Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>

  • Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>

  • Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>

  • Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>

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The vast majority of Canadians are concerned about the growing gap between rich and poor, and are willing to pay higher taxes to fight it, a new poll shows. As the debate about income inequality i...
The vast majority of Canadians are concerned about the growing gap between rich and poor, and are willing to pay higher taxes to fight it, a new poll shows. As the debate about income inequality i...
 
 
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10:29 AM on 05/23/2012
Had to comment here

Not only is the middle class taxed to death, we are also nickel and dimed to death as well.

Hidden fees, services charges, equal payment structures that turn out NOT to be so equal.

You know what I mean. The bank that says they are charging $15.00 because you refuse to use online banking and it's for the cost of paper, or using the tellers time or whatever.....the utility company that applies for a 30% increase to rates only to tout records profits a week earlier.....cable/phone companies charging extra admin fees and usage when you are supposed to have a fixed rate.......landlords charging $1500/mth for apartments worth 900 at best. Yes, we all have a choice most of the time not to use these companies, but sometimes, you are already a customer and can't get out without being charged thousands or they are the only service in your area.
Basically, yes the gov services are separating the income levels, but so are these unregulated businesses who think up ways to take another chunk out of a middle class income. Food, gas, heat, hydro, your phone, your car are all things that you need to work and grow and you also may not have any decent choices in. The government needs to take a serious look at these Big Businesses as I believe these are the ones that are helping separate the income levels.
10:43 AM on 05/03/2012
It's the governments MAIN reponsibility to keep the economy working. A MAJOR part of this is keeping the money flowing. This is why we have equalization payments, from have-provinces to have-nots. Another example is a progressive tax system, that takes progressively higher taxes from those that can afford it, and channels it into funding for those who need it. If Ontario were piling up all the country's cash, the rest of the country would not stand for it. Why is it okay for 1% to take all the cash? The gov't needs to rebalance the formula.
10:33 AM on 04/12/2012
Income inequality isn't a problem. Poverty is. If people become wealthy legally - even amazingly wealthy - that's more than fine by me. It keeps the dream alive for all, for the next generation and can serve as an inspiration. Few aspire to the mediocrity of equivalence and no great society should seek income equality.
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Rusty Bucket
Intensely interested in the human condition!
02:14 PM on 04/11/2012
Raising taxes on the rich is just a knee jerk solution to a problem that has existed since the beginning of time. What is needed is to stop wasting money on pointless government initiatives. To put into place a social infrastructure that adequately addresses the requirements of education thorough to jobs that will allow our citizens to realize their own destiny whatever it may be. I would very suspicious if the extra money taxed from the so called rich would ever reach the intended. If helping the less fortunate is truly the cause célèbre then ensure that the politicians you vote for are truly up to the task!
10:37 AM on 04/12/2012
Well said! Those earning $500,000 already pay 24 times more in combined federal and provincial (Ontario) tax than those earning $50,000, even though they earn only 10 times more. It's a wonder the wealthy keep on taking it.
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zimpeterw
A politically incorrect, contrarian ex zimbabwean
11:20 AM on 04/11/2012
Very strange that the survey found people willing to pay more taxes, most people at all income levels would prefer to pay less. Seems like the questions were carefully designed to obtain the required response.

If we want to enjoy the benefits of a free society where income potential is unlimited, we have to accept that there will always be income inequality. Artificially trying to close that gap was a communist policy that failed everywhere.

We need less government interference, not more.
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valar84
02:29 PM on 04/11/2012
If you ask people: "do you prefer to pay more, or less taxes?" Most people say less.
If you ask people: "do you prefer to have more or less public services?" Most people say more.
If you ask them: "would you pay more in taxes to maintain or improve public services?" then you have their real opinion to a real question.

Some income inequality is inevitable, sure. But that doesn't mean that one shouldn't be worried about income inequality at all. That's like saying "statistically, there will always be murders in a population, so we shouldn't try to reduce the number of murders or make murder illegal".

When income inequality keeps increasing, it's a sign that the system is biased in favor of the richest and that much of the new wealth created is claimed by a small minority. Why should the majority keep supporting such a system?

The government is a way for those otherwise lacking in social and economic power to have their interests defended. We have seen over the past decades that the majority cannot rely on the generosity of the "elite" (the rich and powerful) to use their power fairly and give them a fair share of the wealth created by the joint efforts of everyone. We need the government to step back in the ring and to act as a counter-weight to the abuse of power of the financial and corporate elites.
10:49 AM on 04/12/2012
Well stated. Additionally, the income "pie" is not a static one where those who make more take away money from those who make less. If one creates value, one benefits, sometimes significantly. That seems wonderful to me. That's not to say that poverty isn't awful. It obviously is. But poverty - and not income equality or lack thereof - is the issue.
10:55 AM on 04/12/2012
Could it be that the Broadbent Institute has a political agenda?!
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Mike vdB
Get involved, always question, don't just exist.
12:21 AM on 04/11/2012
Would we be having this issue if we had balanced budgets and no govt debt?
12:57 AM on 04/11/2012
Please share how you think less government debt would = more jobs?

By cutting more jobs from the government we can somehow make more jobs? Your logic seems a bit off.
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HUFFPOST SUPER USER
Mike vdB
Get involved, always question, don't just exist.
01:29 AM on 04/11/2012
Did I mention cutting govt jobs in my statement? No.

The more money we spend that we don't have, the more we go into debt. You can only do that for so long as an individual before you go bankrupt. Why would you expect the govt to be any different? The more money we spend to serve our debt, the less money to spend on other things. Debt is not totally a bad thing, but close to $582 Billion is a bit much.
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HUFFPOST SUPER USER
Steve Lives
The Venus Project ... look it up
04:52 AM on 04/11/2012
You do realize that's impossible don't you? Our society runs on debt, all money is created from debt. We, the citizens, owe the banks for that debt, that they created out of thin air. Ahh slavery, such a good life.....
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HUFFPOST SUPER USER
piceaglauca
The picture says it all....
12:10 AM on 04/11/2012
Both the provincial and the federal governments are reponsible for this inequity thourght their tax structure which demands debt payment. As long as the governments contrinue to look for money to cover the interest cxosts on their spending habits this matter will grow. People cannot continue to pay such high taxes and have enough money left to support their lives and assist in the growth of the GDP. As people lose thier jobs and draw on unemployment and social assistance we continue to remove money from the economy. We in turn continue to raise taxes and fail to adjust some things such as bracket creep. People are forced to work longer to sustain their lives and this is not what the government shouild be doing. It needs to control its spending and adjust the tax structure for the middle income earners since it is the bulk of these people who drive the economy.
01:00 AM on 04/11/2012
You hit the nail on the head! We are upper middle class earners, and are taxed through every orifice. We work more hours - to no avail - there is no point. i for one, do not want to pay more in taxes. I pay more than enough.
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valar84
09:07 AM on 04/11/2012
Around 70-80% of all government spending is for education, pensions, health care and public infrastructure (roads and the like), plus mandatory spending (interest on the debt). These are programs that we all benefit from and that we would have to pay for out of our pockets any which way we choose to have they done, whether by taxes through the government or by fees and direct costs if through private companies. We already know, if we compare with the US, that, in general, doing them through a public system is actually more cost-efficient.

I think there is a strong argument to make that people, especially the middle class and lower, actually have MORE money in their pockets at the end of the day with the high taxes and high public services than if we cut taxes and cut public services.

BTW, taxes have not been continually raising as you claim. The share of tax revenues in the economy (a good estimate for the effective rate of taxation) has been declining since the late 90s. The problem is that a lot of these tax cuts have been targeted at the richest and big corporations.
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piceaglauca
The picture says it all....
09:42 AM on 04/11/2012
The CPI which affects tax tables and the eventual bracket creep has not been adjusted. The continuous low interest rates (artificially low thanks to the B of C) have forced retirees to again seek employment. Many pensions do not have a cola. You seem to think a 70 year old should have to work after making a fair contribution to society. Politicians don't have to worry they walk the yellow brick road. If you are a high income earner with a secure job then your judgement is weak. Come live on Danforth and Church for awhile.
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Mike Keohane
10:32 PM on 04/10/2012
"Don't tax you, don't tax me, tax that fellow behind the tree." (Russell Long)
09:39 PM on 04/10/2012
The Canadian middle class is already overtaxed. It is time for corporations to pay the bill, as the tax structure allows for a significant inequality between people and legal entities (i.e. corps). For example, if live in Ontario and make a minimum wage, you are paying about 20% in taxes, and 31% in Saskatchewan (the rates include fed and provincial taxes). On the other hand, corporations earning up to 500,000 pay as little as 15.5% in Ontario this year (again this is a combined rate).

Somehow, our tax system favours profit-based institutions over people.

BTW, the US has the highest corporate tax rate of close to 40% in all OECD countries. Why are we afraid that the tax increase will make the business run south?
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MyTake
Release the Hydrogen Economy now!
06:11 PM on 04/10/2012
Ah, there is a simple solution.

Simply abolish the Revenue Income Tax code and replace it with two simple lines denoting the PERSONAL and BUSINESS income tax rates -- ZERO EXCEPTIONS and ZERO DEDUCTIONS.

Doing so, will see the deficit gone in two years and budget surpluses within 4 years.
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sunnyokanagan
Increase compassion. Decrease suffering
05:19 PM on 04/10/2012
No left-wing / right-wing split on this issue? Well, except for where the poll graph shows 70% of Albertans are concerned, where in the rest of the country concern is running about 80%.

Is that significant enough for you to draw an inference?
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Add In Canadia
Egotism is a weakness
07:20 PM on 04/10/2012
Way to draw a line in the sand where there is none. Over two-thirds of Albertans are concerned about income equality, and you throw out the gem that Albertans are split on the issue?
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sunnyokanagan
Increase compassion. Decrease suffering
08:47 PM on 04/10/2012
Misread. The inference might be that AB cares less about income equality than TROC. 70% there versus 80%. Line in the tar sands?.
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arkymorgan
Nobody knows the trouble I've been...
04:53 PM on 04/10/2012
Personally, I do agree that wasteful and inefficient practices should be rooted out first, before taxes are raised.

It's wasteful and inefficient to spend money meant for the G20 conference for community projects far away from the activities of that conference.

It's wasteful and inefficient to throw thousands of people out of work to make cheap political points when the net result will be higher EI payments and more people reduced to Social Assistance.

It's wasteful and inefficient to spend money pretending to research and consult about fighter jet purchases when you don't care whether they are the right plane at the right price, but only about making friends with the US defense department.

Those are only a few of the wasteful and inefficient practices we should address before increasing taxes...
03:52 PM on 04/10/2012
No kelley I think you are wrong, the only people I talk to who are not willing to put out more to help out are the cons speak with. Most of them are selfish and only worried about themselves, have little ability to see the big picture and how helping out all actually reduces burden on each individual.

Most of us understand that you can't get something for nothing, and are willing to contribute to help out our neighbours. But it seems only cons want toget something for nothing, they want more services but by spending less. They want less taxes but more services. They feel entitled to tax breaks and write offs and complain when asked to pay more.

The majority of Canadians, like in the last one hundred and fourty four years, are willing to work a little harder, pay a little more, if it means that everyone will be taken care of. Unfortunately the minority has gotten big enough to be vocal enough to make us think that the majority of us are that selfish. The truth is cons are greedy , self serving, whiny, entitled citizens who believe they don't need to pay for anyone else, because they don't need anyone else's help.

All I can say is everyone gets old and yo will need someone to change your diapers one day, they had better hope some of us are willing to give them a hand.
georgee2
My Canada Includes Everyone
03:50 PM on 04/10/2012
Don't hold your breath waiting for this government to narrow the gap. They are doing everything they possibly can to make sure it gets wider.
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sociocanuck
Red Tory mind / Progressive voting history
03:41 PM on 04/10/2012
It is unsurprising, really, that an issue so easily polluted along a bipolar political divide in the American context shows up as less charged by politics (but obviously not absolutely apolitical, as the moan from McParland shows) when polled up here.

Canadian 'conservative' voters are often much more pragmatic and much less reactionary than the governing party they remain convinced serves their best interest - through name branding alone, unfortunately - and certainly moreso than American counterparts.

In the name of staying on board the "winning" ship, though, nobody seems to want to call out the myopia of the governing party - lest they be seen as not truly supporters. Or worse, moles for the opposition.

It's pretty much the same apathy toward holding the government responsible as seen south of the border: tons of people love to moan about how little the government does in their favour, but very little momentum is made by ideologically-biased efforts to promote fundamentally non-ideological change from the ground up. There's a 'physician health thyself' attitude that suggests an occasional transfusion of 'new blood' (fits the metaphor, doesn't it) will eventually add up. But it can't work if you're using conflicting blood types...