This document provides a summary of Paul Young's views on income inequality and potential solutions. It notes that income inequality is an issue around the world and Canada has a relatively average level of inequality compared to other OECD countries. Paul argues that consumption taxes disproportionately hurt low to middle income earners. He believes the best solutions are job creation, improving education, reducing tax havens, reforming trade practices, and stopping one-off policy proposals rather than comprehensive reforms.

1. INCOME INEQUALITY –
HOW TO FIX IT
BY: PAUL YOUNG, CPA, CGA
JANUARY 7, 2019

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Emerging Technology
• SME – Business Process Change
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. SUMMARY
Income inequality has been issues around the world
Canada is close to OECD average in terms of its income equality gap
Consumption taxes like carbon and goods and service taxes hurt the low to
middle income earners as they have less after tax dollars than the wealthy
Canada does a decent job with sharing the wealth through OAS, Income
Supplement, EI, transfers (CST and HST), etc.
No government has ever had the right policies to close income gap. In fact,
Paul Martin’s cuts in the 1990s led to more issues with income inequality -
https://www.policyalternatives.ca/publications/monitor/beware-
canadian-austerity-model

4. INTRODUCTION
• This presentation looks at income inequality and what can be done to fix it!

5. AGENDA
• Middle class
• World Income Inequality
• Wage Growth
• Canada and Income Inequality
• Blog – Income Inequality
• Ed Broadbent
• Justin Trudeau
• What needs to be done

6. WHAT IS INCOME INEQUALITY

7. HOW IS INCOME
INEQUALITY FIX
• Distribution of wealth
• Funding to Healthcare
• Funding to Education
• Funding to other social Programs
• Strong Middle Class/Job Creation

8. Source -
https://www.bloomberg.com/news/
articles/2016-11-24/chile-mexico-u-
s-have-highest-inequality-rates-oecd-
says
MEXICO INCOME
INEQUALITY

9. WAGE GROWTH
Source - https://www.mckinsey.com/industries/public-sector/our-insights/inequality-a-persisting-challenge-and-its-implications?cid=other-pso-twi-
mps-mps-oth-1908
Who has been better for wage growth?
@justintrudeau whose policies have led to wages
barely keeping pace with inflation
@andrewscheer whose former leader was very
good for wage growth –
https://business.financialpost.com/opinion/willia
m-watson-turns-out-the-harper-government-
was-actually-terrific-for-wage-growth
https://www.slideshare.net/paulyoungcga/2019-
election-wages-and-wage-growth-may-2019

10. WAGE GROWTH
Source - https://www.mckinsey.com/industries/public-sector/our-insights/inequality-a-persisting-challenge-and-its-implications?cid=other-pso-twi-
mps-mps-oth-1908
The World Economic Forum has released its annual study
on gender equality, and Canada once again is ranked
20th. http://lawofwork.ca/?p=2244
Liberals need to take emotions out of their economic focus and put
focus on getting things done like pipelines built or streamlining of
regulations - https://www.slideshare.net/paulyoungcga/canada-
importance-of-trace-february-2018
Source - https://www.ctvnews.ca/politics/key-budgetary-goal-to-
help-women-enter-work-force-would-lift-economy-analysis-
1.3813367
Canada is heading down a slippery slope when it comes to solving
equality issues. Canada has issues with pay equity just like other
countries. The Liberals think they can fixed the issue with pay equity
which is a bit of fallacy. There are many factors that go into
compensation including education, experience and merit increases.
Source - https://www.slideshare.net/paulyoungcga/gender-equality-
canada-march-2018

11. COUNTRY / UNEQUAL
Source - https://www.theguardian.com/inequality/datablog/2017/apr/26/inequality-index-where-are-the-worlds-
most-unequal-countries

12. ED BROADBENT

13. LPC – INCOME INEQUALITY

14. INCOME
INEQUALITY
– REBUTTAL
#1
http://www.cbc.ca/radio/thecurrent/the-current-for-
february-25-2016-1.3463342/liberal-mp-pushes-for-
government-to-study-guaranteed-minimum-income-
1.3463464
Does this guy even look at stats?
http://www.statcan.gc.ca/tables-tableaux/sum-
som/l01/cst01/labr69a-eng.htm or
http://www.statcan.gc.ca/tables-tableaux/sum-
som/l01/cst01/labor93a-eng.htm
It seems to me that if people pick the right career then maybe
they would see a rise in their income!

15. REBUTTAL #2 – INCOME INEQUALITY
http://thetyee.ca/News/2016/03/08/UN-Tells-Canada-Clean-Up-Inequality/http://thetyee.ca/News/2016/03/08/UN-Tells-Canada-Clean-Up-Inequality/
I am getting tired of the UN pushing their policies. How about going after China/India/other countries that have high poverty levels. Do we have issues?
Yes! Does the new budget address those issues? No
http://www.vancouversun.com/opinion/columnists/cayo+some+forms+inequality+better+some+much+worse/11804872/story.html or
1. Scandinavia vs- Canada - https://www.youtube.com/watch?v=Y2jobYcTsXY
2. Middle Class https://www.youtube.com/watch?v=hoZ96sCQ-sQ
3. Income inequality - https://www.youtube.com/watch?v=TulkPgfR-R0
4. Guarantee Income - https://www.youtube.com/watch?v=0UrgSeNDCPo
http://www.cbc.ca/news/business/tax-changes-inquality-1.4285436
Canada is middle of road when it comes to income inequality: https://www.bloomberg.com/news/articles/2016-11-24/chile-mexico-u-s-have-highest-
inequality-rates-oecd-says
Harper had it right in terms of supporting income issue - http://globalnews.ca/news/1356467/tax-cuts-since-2005-net-canadians-30b-pbo/. Consumption
taxes hurt the poor to middle class more than the top 1%.
The top 1% pay close to 20% of the federal income tax - https://www.slideshare.net/paulyoungcga/top-1-wealthiest-income-earners-canada-2013-and-
2014-analysis-and-comments. Liberals continue to think taxing the rich will fixed the issues with income inequality. The problem is that you cannot tax
people to prosperity
The best solution to income inequality is creating the conditions that jobs grow in the goods producing sector or jobs that require advance skills.
https://www.slideshare.net/paulyoungcga/august-2017-canada-employment-market. If Trudeau and his team spent more time on getting projects of the
ground and/or expanding exports then you could see more decent jobs returning to Canada. Trudeau goals seems to want to build a system that has
people dependent on government - https://www.slideshare.net/paulyoungcga/what-is-agenda-2030

16. NDP AND WORKING WAGE
Catherine, When are you going to
push for reforms to
arbitration/pension/OPP costs? It
seems to me that we have huge
gaps between private and public
sector which has never been dealt
with by Ontario Liberal
Government. https://www.fraserinstit
ute.org/.../times-have-changed....
How is this sustainable?

17. PBO FEDERAL GOVERNMENT TAX CUTS
Source - https://globalnews.ca/news/1356467/tax-cuts-since-2005-net-canadians-30b-pbo/
The report is useful for the Conservatives heading into an election campaign in 2015 that it
plans to run on management of the economy. With a balanced budget also likely in 2015,
Conservatives are expected to introduce at least one more major tax measure — a
variation of income splitting it promised during the election four years ago at a cost of about
$2.7 billion.
Another gift to the government in the report was that the PBO found that in relative terms —
lower income Canadians earning between $12,200 and $23,300 benefited the most,
increasing their after-tax income by four per cent.

18. INCOME GROWTH / CANADA
Source - http://www.statcan.gc.ca/daily-quotidien/170913/dq170913a-eng.pdf or Stats Canada

19. USA AND INEQUALITY
@AOC - I am floored how you feel increasing income taxes to 70% for the top
1% will solved your budget crisis -
https://www.youtube.com/watch?v=hWarBMfshaA&t=50s (Stuart Varney called
out a similar approach by this gal
I am all about income inequality, but you won't fix it with one off policies

20. WHAT’S NEEDS TO BE DONE
• Governments need to start focusing on delivering of social welfare via value for money
• Government corruption needs to end
• OECD needs to work with governments around the world to shut down tax havens. Tax havens starve government treasuries -
https://medium.com/@nslewis/tax-havens-make-gdp-screwy-c241430447d9 - BEPS was good start but more needs to be done to shut down taxpayers
moving funds to tax havens
• Countries around the world need to start focusing on education through proper degree and apprenticeship programs. Germany model on apprenticing is
good model that could be exported around the globe - https://www.insidehighered.com/views/2018/03/27/how-adapt-german-apprenticeship-model-
work-best-us
• United Nations needs to clean up its act when it comes to foreign aid. More oversight and value for money audits to ensure money is getting to the
people that need it the most - https://www.slideshare.net/paulyoungcga/foreign-aid-lack-of-accountability-and-oversight-december-2018
• Governments around the world need to stop looking at ways to tax. Carbon taxation / price for carbon hurts the low to middle income more in terms of
costs.
• Countries around the world need to fix their various tax codes. There needs to be simplification to their tax codes.
• Minimum wage hikes need to be tied to inflation
• WTO needs to push emerging markets to liberalized trade practices including labor law reforms, environmental reforms, removal of subsidies, etc.
• 2030 agenda needs to be stopped. There needs to be more effective way to move people to rural areas as way to spread out economic development
• Politicians need to stop looking at one off policies when it comes to income inequality.