Straight Talk About...: Part 2 - Some Indicators on Canada's Socio-Economic Health

Income Polarization

Toronto in the 1970s was a predominantly middle class city. 35 years later the city's demographics shows that the middle class is disappearing and the high and low income groups live in separate areas.

Source. The Three Cities Within Toronto, professor J. D. Hulchzmski, U of T

Note: It must be stated that, Toronto is not in a unique position, it's a common phenomenon across the country.

Personal income Statistics 2010

2008 tax year for Canada

52.01% of tax payers had less than $30,000 gross (before taxes) income; likewise
64.41% had less than $40,000 gross income.
26.04% -- or 6.5 million tax payers -- received $50,000 gross income or more; similarly
0.75% -- or 188,030 taxpayers -- received $25 0,000 gross income or more.
The Average Gross Income was at $40,910

2008 tax year for Ontario

50.67% of taxpayers had less than $3 0,000 gross income; likewise
62.37% had less than $40,000 gross income.
28.01% -- or 2.63 miliion tax payers -- received $50,000 gross income or more: similarly
0.86% -- or 80,480 tax payers -- received $250,000 gross income or more.
The Average Gross Income was at $47,880

(Source: Canada Revenue Agency)

Note: An independent social agency suggests that a single person in Southern Ontario requires $28,300 per annum gross income to maintain a reasonable standard of living.

Economic Performance

In 2009, 60 countries had faster Real GDP Growth than Canada. (Source: IMF 1ntemational Financial Database, March 2011 edition.)
During the 1st three quarters of 2010, 25 countries with Real GDP had faster Growth than Canada. (Source: IMF 1ntemational Financial Database, March 2011 edition.)
In 2009, 55 countries experienced smaller increase in the Unemployment Rate than Canada. (Source: International Labour Organization, Short-Term Indicators of the Labour Market, March 2011 edition.)
During the 1st three quarters of 2010, 27 countries experienced a larger improvement in the Unemployment Rate than Canada. (Source: International Labour Organization, Short-Term Indicators of the Labour Market, March 2011 edition.)

Unemployment Rates
3 month moving average ending April 2011

Canada EI Account, Income Benefits, Planned Spending 2010-2011 $19.751 Billion
Canada 1.4886 million, or 8.1%
Ontario 580.8 thousand, or 7.9%
Australia 5.0%
Austria 4.3%
Denmark 4.2%
Malaysia 3.2%
Norway 3.2%
Singapore 2.2%
Switzerland 3.4%

(Source. The Economist, March 26, 2011)

Corporate Tax Rate Reduction vs. Unemployment Rate

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1950 - Combined Provincial, Federal Corporate, OAS Tax Rate 46.4%, Unemployment Rate 1.5%
1975 - Combined Provincial, Federal Corporate, OAS Tax Rate 23.1%, Unemployment Rate 6.9%
1985 - Combined Provincial, Federal Corporate, OAS Tax Rate 15%, Unemployment Rate 10.7%
1993 - Combined Provincial, Federal Corporate, OAS Tax Rate 6.9%; Unemployment Rate 11.2%
1995 - Combined Provincial, Federal Corporate, OAS Tax Rate 11.2%, Unemployment Rate 9.4%

(Source: Statistics Canada)

The aforementioned data illustrates the seriousness of this country‘s socio-econo-ﬁscal state of affairs that demands an entirely new multi-pronged methodology to lead Canada out of the quagmire. Moreover, Corporate Tax Rate reduction doesn't seem to create employment.

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