W Rank Name $US b Industry Inheritance 15 Kenneth Thomson & fam 17.2 publishingyes 44 Galen Weston & fam 7.7 foodyes 94 Jim Pattison 4.6 advertising, etc.no.

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Presentation transcript:

W Rank Name $US b Industry Inheritance 15 Kenneth Thomson & fam 17.2 publishingyes 44 Galen Weston & fam 7.7 foodyes 94 Jim Pattison 4.6 advertising, etc.no 103 Jeff Skoll 4.4 internetno 124 James, Arthur, & John Irving3.8 oil, etc.yes 159 Barry Sherman 3.0 pharmaceuticalno 205 Charles Bronfman 2.5 miscellaneousyes 216 Michael Lee-Chin 2.4 mutual fundsno 216 Paul Desmarais 2.4 financeno 342 Edward Rogers 1.7 media yes 342 Emannuele Saputo & fam 1.7 dairyyes 377 Daryl Katz 1.5 pharmaciesno 377 Wallace McCain 1.5 foodyes 406 Jean Coutu 1.4 pharmaciesno 472 Harrison McCain 1.2 foodyes 514 Guy Laliberte 1.1 entertainmentno 514 Stephen Jarislowsky 1.1 asset managementno Note: Of the 163 countries on which GDP data are available, 116 have smaller GDPs than the combined assets of these 17 billionaires. Canadian $US Billionaires, 2004

Weber’s Stratification Scheme high low large small large number of people value of rewards class 4 status group 4party 4 c3 sg3 p3 c2 sg2 p2 c1sg1p1 INCOME PRESTIGEPOWER

Tax Rates Vary by Source of Income and Therefore by Income Class source salaries, dividends capital wages gains* % taxed who is employed stockstock owners taxed peopleownersand owners of property other than home * Capital losses from previous years are subtracted from current capital gains to arrive at taxable capital gains.

RRSP Benefits Increase with Income Income earner lowmiddle high Taxable income0$20K$100K Marginal tax rate025%50% RRSP deposit0$1K$1K Reduction in taxable inc.0$1K$1K Tax saving*0$250$500 * RRSP deposit times marginal tax rate

The Rich Get Richer and the Poor Stagnate: Change in Median Net Worth of Families, Canada, (in 1999 $) 0% 2% 11% 27% 39% $ ‘000s 11%

How Taxes and Transfers Redistribute Family Income to the Bottom and Top Quintiles, Canada, (in 2002 $) Year Percent Gain, bottom quintile Loss, top quintile Income before income tax and transfers, 2002 Top quintile $82,300 Bottom quintile $8,200 Ratio.10 Income after income tax and transfers, 2002 Top quintile $65,400 Bottom quintile $13,600 Ratio.21

After-tax Family Income, Ratio of Bottom to Top Quintile, Canada, (in 2002 $) Year Ratio

Unemployment and the Poverty Rate, Working Age Canadians, Year Percent Poverty Rate Unemployment Rate ++ ―

Poor Unattached Individuals Under 65 by Weeks Worked, Canada, 1995

Welfare Benefits for Couple with Two Children, as Percent of Poverty Line, Canada, by Province, 2001 Welfare as percent of poverty line Province

Poverty Rates by Group, Canada, Poverty rate in % Year Total Elderly (65+) Single mothers with children Singles < 25 years

Household Income Inequality and Low Income, Selected Countries, Gini Index Country Note: If the Gini index = 1, all income is earned by one household. If the Gini index = 0, all income is shared equally by all households. The low income line is 50% of median income. Sweden China Canada France Germany Italy U.K. U.S.A. Russia 7.2 ? 14.4 ? Percent of population with low income