This presentation looks at the top 1%

1. WEALTHIEST
INCOME –
CANADA –
TAXATION AND
INCOME ANALYSIS
BY: PAUL YOUNG, CPA, CGA
DATE: JUNE 10, 2019

2. DISCLAIMER
• This presentation discusses Wealthiest Canadians

3. PAUL YOUNG - PRESENTER
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

4. AGENDA
• Who are the top 1%
• Re-distribution of Wealth
• GDP Tax flow
• Tax Bracket
• Blog – Wealthiest
• Blog – Middle Class and Top 1%
• Blog - Income Tax Splitting
• Regressive taxes

5. TOP INCOME
EARNER/CANADA
• Here’s what it takes to be among Canada’s top earners:
• Top 1 per cent: income of at least $222,000. A total of 264,030 tax-
filers earned that amount or more in 2013,
• Top 5 per cent: income of at least $115,700,
• Top 10 per cent: income of at least $89,200.

6. TOP 1% / TAX
Source - https://www.wealthprofessional.ca/market-
talk/top-incomeearners-paying-more-than-their-fair-
share-234809.aspx

7. TOP INCOME EARNER/CANADA
Combined Provincial/Territories range 47% to 55%
•NB has highest combine Personal Income Tax in Canada
•269K pay 20% of the total income tax in Canada (2014 Stats)
Alberta accounted for much of the increase in the nation's top 1%
of taxfilers between 2013 and 2014. This predated the drop in oil
prices in 2015. Nearly 68,600 of the high-income group lived in
the province in 2014, an increase of more than 6,000 over 2013.
In contrast, the number of top 1% taxfilers living in Ontario fell by
1,900, from 109,100 in 2013 to 107,200 in 2014. However,
Ontario retained the largest share of Canada's top 1% of taxfilers
(39.9%) in 2014. Ontario and Alberta combined accounted for
65.5% of the country's top 1% of taxfilers, which was above their
share of the country's total taxfilers at 49.1%.
•The small group is a big source of federal revenue, contributing more than 20 per cent
of all income tax collected. Canada’s rich may be getting a little richer, but their
income growth of 1.2 per cent between 2012 and 2013 was in line with the growth of
all other tax filers.
•http://www.cbc.ca/news/canada/new-brunswick/higher-taxes-on-rich-may-miss-
revenue-targets-experts-say-1.3031842 or
https://www.youtube.com/watch?v=pICUvNi95AY

8. TOP INCOME EARNER/TAXES -2013 AND 2014
Source – Stats Canada

9. REDISTRIBUTION OF INCOME:
Facts:
• Top 1% account for 20% of
the Federal Income Tax
• Corporate Tax account for
1/3 of the transfer
payments
• Equalization benefits come
from the have not
promises via royalties as
well as other revenue
sources

10. GDP / WEALTH FLOW
Factors in play that impact wealth
distribution
• Companies invest into projects as part of return
on investment for their shareholders
• Pensions Funds like CPP investment in
companies for their return on investment
• Wealth distribution is done from transfers to
provinces to support healthcare.
• Provincial government collect tax dollars to fund
education and healthcare
GDP Growth:
• 2/3 of the economic
growth is driven by
retail Sales
• Exports are about ¼ of
GDP. Canada needs
exports
• Canada needs FDI in
order to develop its
resources,
manufactured goods,
build transportation
systems

11. BLOG #1 – WEALTHIEST
• Wealthiest pay 20% of the federal income tax - https://www.slideshare.net/paulyoungcga/wealthiest-income-analysis-and-
commentary-canada-2017
• Governments have an issue with their delivery model which is ignored by your post, why?
https://www.slideshare.net/paulyoungcga/social-spending-and-taxation-government-sustainability-april-2019
• I am sure you believe in a wealth tax, right? https://www.youtube.com/watch?v=hWarBMfshaA
• Income equality is an issue, but won’t be fixed with bad policies like C69 or C48 or Carbon Taxation or other bad policies that
discourage business investment – https://www.slideshare.net/paulyoungcga/business-competitivesness-canada-march-2019
• You do not fixed income inequality either by handing moneys out to able bodied people or by taxing others to death. The problem
with socialism is that you eventually run out other people’s moneys! - https://www.slideshare.net/paulyoungcga/guarantee-
income-canada-analysis-and-commentary-february-2019
• FYI – We need to stop finding more ways to tax people and start looking at how government operates!
https://www.slideshare.net/paulyoungcga/social-spending-and-taxation-government-sustainability-april-2019 or
https://www.slideshare.net/paulyoungcga/canada-public-sector-vs-private-sector-april-2019

12. MIDDLE CLASS AND WEALTHIEST
• Liberals are attacking income classes as way to pander for votes!
• https://www.slideshare.net/paulyoungcga/class-warfare-canada-taxation-february-2019
• Again, you are misinformed! https://globalnews.ca/news/1356467/tax-cuts-since-2005-net-canadians-30b-
pbo/
Low income had many programs
https://www.macleans.ca/politics/ottawa/harper-changes-canada-a-cut-at-a-time/
• @AndreaHorwath I bet people like think taxing wealth is the right approach!
https://www.youtube.com/watch?v=hWarBMfshaA&t=257s or
https://www.thestar.com/news/canada/2017/09/13/canadian-incomes-jump-but-ontario-residents-hit-by-
manufacturing-downturn-statistics-canada.html
• https://www.slideshare.net/paulyoungcga/wealthiest-income-analysis-and-commentary-canada-2017

13. OTHER
INFORMATION/COMMENTS:
• NDP and Liberal Comments - http://www.torontosun.com/2015/08/15/trudeau-and-mulcair-selling-a-
fantasy-to-the-middle-class or http://www.cbc.ca/news/politics/trudeau-speech-chamber-commerce-
1.3513939
• I hear the same comments that Harper has killed the middle class when it is has been bad provincial policies
led by various provincial government that felt social policy at all costs is the solution to run their various
budgets. Here are facts/videos on the middle class - https://www.youtube.com/watch?v=xqLDHQ-iJU8 (is this
a lie? or https://www.youtube.com/watch?v=yOl37VcG89c (is this a lie? - http://globalnews.ca/.../tax-cuts-
since-2005-net.../ (is this a lie?) or http://www.slideshare.net/paulyoungcga/taxation-policies (are my slides
8-11 wrong).
• BTW: Hiking the corporation tax to 18-22% range will add 2-8% more to cost of your iPhone, iPad, Clothes,
transit passes, food, beer, wine, etc. http://www.slideshare.net/paulyoungcga/corporation-taxation-canada-
44675640.
• How about childcare: http://www.iedm.org/fr/2821-quebecs-failed-child-care-model
• Canada is one of the most admired countries in the world: http://www.ctvnews.ca/canada/canada-ranked-as-
most-admired-country-in-the-world-report-1.2470040
• Canada also has done well compared to its peers across the world -
http://www.bmonesbittburns.com/economics/forecast/int/intmodel.pdf
• http://www.theglobeandmail.com/report-on-business/top-business-stories/canadians-scale-the-income-
ladder-with-the-best-of-them/article25533315/?click=sf_globefb
• Remind me again why we should change to either Mulcair or Trudeau government as the facts do not align
with their policies! http://www.torontosun.com/2015/08/15/trudeau-and-mulcair-selling-a-fantasy-to-the-
middle-class
• FYI – Canada is still one of the best countries in the world -
http://news.nationalpost.com/news/canada/canada-named-the-country-with-the-best-reputation-by-global-
survey-again or https://ca.news.yahoo.com/blogs/dailybrew/canada-tops-the-world-as-most-reputable-
country-021908756.html
• FYI – Taxing the richest - http://www.cbc.ca/news/canada/new-brunswick/higher-taxes-on-rich-may-miss-
revenue-targets-experts-say-1.3031842 or https://www.youtube.com/watch?v=pICUvNi95AY
• Hydro rates - http://laws-lois.justice.gc.ca/eng/const/page-4.html

14. BLOG - WEALTHIEST CANADA
• Wealthiest pay 20% of the federal income tax - https://www.slideshare.net/paulyoungcga/wealthiest-income-analysis-and-commentary-canada-2017
• Governments have an issue with their delivery model which is ignored by your post, why? https://www.slideshare.net/paulyoungcga/social-spending-and-
taxation-government-sustainability-april-2019
• I am sure you believe in a wealth tax, right? https://www.youtube.com/watch?v=hWarBMfshaA
• Income equality is an issue, but won’t be fixed with bad policies like C69 or C48 or Carbon Taxation or other bad policies that discourage business investment –
https://www.slideshare.net/paulyoungcga/business-competitivesness-canada-march-2019
• You do not fixed income inequality either by handing moneys out to able bodied people or by taxing others to death. The problem with socialism is that you
eventually run out other people’s moneys! - https://www.slideshare.net/paulyoungcga/guarantee-income-canada-analysis-and-commentary-february-2019
•
• FYI – We need to stop finding more ways to tax people and start looking at how government operates! https://www.slideshare.net/paulyoungcga/social-
spending-and-taxation-government-sustainability-april-2019 or https://www.slideshare.net/paulyoungcga/canada-public-sector-vs-private-sector-april-2019 or
fiscal management - https://www.slideshare.net/paulyoungcga/federal-transfers-equalization-payments-canada-may-2018
•

15. INCOME SPLITTING / TAXATION
• Income Tax splitting / Accountant perspective:
• http://www.pwc.com/en_CA/ca/tax-insights/publications/pwc-income-splitting--other-tax-measures-
for-families-introduced-2014-10-en.pdf
• http://www.ctvnews.ca/politics/income-splitting-among-new-tax-breaks-aimed-at-families-1.2079559
• http://www.imfcanada.org/sites/default/files/IMFC_Income%20Splitting_June2014.pdf
• http://www.charteredaccountants.ca/newsletters.html
• Vern Krishna - http://business.financialpost.com/2014/12/17/vern-krishna-income-splitting-is-fair/
•
• So, how does income splitting not help one spouse that makes 60K and the other none or one spouse
that makes 40K the other 70K

16. REGRESSIVE TAX
• Definition: A regressive tax is a tax applied uniformly, taking a larger percentage of income from low-
income earners than from high-income earners. It is in opposition to a progressive tax, which takes a
larger percentage from high-income earners.
• Who introduced Carbon tax? Liberals, right?
• The carbon tax is regressive tax. The Liberals decided to offer tax credit to families. The problem the true cost of
carbon tax is about $750 to $1,500 per family - https://www.slideshare.net/paulyoungcga/art-of-taxing-
pollution-canada-environment (see slide 45)

17. SUMMARY
• Top 1% pay over 50% of the income to taxation
• Top 1% earned their wealth through investment in stocks, bonds and real estate
• Top 1% have good accountants and lawyers as such no how to work within the tax laws to moved income around as part of managing
their taxes
• Top 1% may take their investment elsewhere as part of managing their wealth - http://www.statcan.gc.ca/daily-
quotidien/161017/dq161017a-eng.htm
• Pensions fund by companies as part of managing their returns
• Bad policies hurt the low to middle class worst than the 1%
• Carbon Taxation will force up household spending by $1,200 to $1,500
• Hikes to CPP will impact hiring (Companies may not be able to afford the hikes)
• Hydro rates impact both business investment as well as household spending
• Money flows from companies through the following ways
• Dividends payout
• Capital Investment (debt, working capital or stock issuance)
• Share buyback

18. SOURCES:
• Income inequality – https://www.youtube.com/watch?v=TulkPgfR-R0
• Middle Class - https://www.youtube.com/watch?v=hoZ96sCQ-sQ or
http://www.slideshare.net/paulyoungcga/middle-class-analysis-and-commentary-canada
• Labor Market and Policies - http://www.slideshare.net/paulyoungcga/government-policies-labour-
market-canada-67545343
• Trickle down economics - http://www.slideshare.net/paulyoungcga/what-is-trickle-down-economics
• Guarantee Income - https://www.youtube.com/watch?v=0UrgSeNDCPo