The COVID19 crisis has led to many issues including a rise with both income inequality and poverty. Countries around the world need to work fixed their enconomic and fiscal policies.

1. INCOME INEQUALITY –
HOW TO FIX IT
BY: PAUL YOUNG CPA CGA AUGUST 2, 2020

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
• Poverty
• Middle class
• World Income Inequality
• Wage Growth
• Canada and Income Inequality
• Post-COVID19
• Blog – Income Inequality
• GDP per capita
• Ed Broadbent
• Justin Trudeau
• G7 and Income Inequality
• Gender Gap / Canada
• Income Splitting
• Gender Gap Ranking
• Job Quality
• Nova Scotia / Income Inequality
• Training and development courses
• What needs to be done

6. GLOBAL / OECD – POVERTY RATES
Source - http://www.koreaherald.com/view.php?ud=20200802000122
• More governments are pushing for guaranteed income -
https://www.stcatharinesstandard.ca/news/niagara-
region/2020/07/12/region-to-be-asked-to-lobby-for-basic-
income-guarantee.html
• The world will continue to see more and more jobs
eliminated due to automation -
https://www.slideshare.net/paulyoungcga/whats-next-for-
automation-private-and-public-sector
• City grows so does poverty -
https://yaleglobal.yale.edu/content/cities-grow-so-do-
numbers-homeless
• More people to cities is part of the NWO -
https://www.slideshare.net/paulyoungcga/agenda-
2030-canada-one-world-government-nwo-new-
world-order-january-2019

7. MIDDLE CLASS
@justinTrudeau failed to make things more affordable (80% of the middle class are paying higher taxes, carbon tax takes
money out of people’s pocket, housing has not become more affordable) https://www.cbc.ca/news/politics/canada-election-
2015-justin-trudeau-affordable-housing-1.3220479 or https://www.slideshare.net/paulyoungcga/has-canada-middle-class-
benefited-from-justin-trudeau-and-liberal-government
No gender base analysis

8. WHAT IS INCOME INEQUALITY

9. HOW IS INCOME
INEQUALITY FIX
• Reforming government compensation/pension -
https://www.slideshare.net/paulyoungcga/public-sector-how-
to-reform-all-levels-of-government
• Promoting policies that support economic growth -
https://www.slideshare.net/paulyoungcga/gdp-canada-may-
2020
• Distribution of wealth
• Funding to Healthcare
• Funding to Education
• Funding to other social Programs
• Reforming equalization -
https://www.slideshare.net/paulyoungcga/2019-election-
federal-transfers-to-province-canada-august-2019
• Strong Middle Class/Job Creation -
https://www.slideshare.net/paulyoungcga/canada-what-is-
happening-with-the-middle-class or
http://www.oecd.org/employment-outlook/2020/

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

11. 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

12. 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

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

14. GDP PER CAPITA
Source – Stats Canada
Assumptions
1. Based on GDP by sector
2. Based on annual growth rates
3. Based on GDP growth rates (no GDP availableafter 1997) • Trudeau’s policies have not helped the middle class -
https://www.slideshare.net/paulyoungcga/2019-election-middle-class-liberals-vs-cpc-july-2019
• Trudeau’s policies have allowed the top 1% to pay less taxes -
https://www.slideshare.net/paulyoungcga/2019-election-wealtiest-top-1-canada-august-2019
• Trudeau’s poverty numbers are far from accurate. Poverty has been declining for years -
https://www.slideshare.net/paulyoungcga/2019-election-poverty-canada-july-2019
• Source - https://www.macrotrends.net/countries/CAN/canada/gdp-per-capita

15. GDP GROWTH VS POPULATION GROWTH
Source – Stats Canada
1. Information is based on GDP by sector
2. Population is based on annual numbers
(estimates)

16. POST-COVID19
• Focus needs to be on the goods-producing sector – https://www.slideshare.net/paulyoungcga/canada-and-natural-resources-
development-and-export-strategy (Natural Resources development/management)
• Focus on next generation of manufacturing - https://www.slideshare.net/paulyoungcga/manufacturing-trends-canada-february-2020-and-
march-2020
• Reforming government - https://www.slideshare.net/paulyoungcga/canada-municipal-and-local-government-whats-needs-to-be-done
• Revisiting economic policies - https://www.slideshare.net/paulyoungcga/whats-next-for-canada-post-covid19
• Fixing WTO and other groups - https://www.slideshare.net/paulyoungcga/2019-election-global-trade-barriers-and-protection-wto-canada-
september-2019
• More balance between economy and the environment - https://www.slideshare.net/paulyoungcga/clean-technology-and-green-economy-
canada
• Fixing the systemic issues with housing - https://www.slideshare.net/paulyoungcga/latest-new-housing-market-canada-april-2020
• Stop treating oil as bad disease - https://www.slideshare.net/paulyoungcga/oil-and-gas-sector-whats-happening-outlook-2020-and-
beyond
• Fixing the delivery model for healthcare - https://www.slideshare.net/paulyoungcga/global-healthcare-in-crisis-efficient-and-effective-
delivery-of-healthcare-dollars
• Protecting those most vulnerable - https://www.slideshare.net/paulyoungcga/retirement-and-assistant-living-canada-issues-and-what-
needs-to-be-done

17. ED BROADBENT

18. LPC – INCOME INEQUALITY

19. 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!

20. 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

21. 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?

22. 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.

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

24. 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

25. G7 AND INEQUALITY
Source – McKinsey Group
USA income inequality also worsen under Obama.
https://www.washingtonexaminer.com/obama-
claims-inequality-falling-even-as-income-inequality-
soars
@justintrudeau impose regressive carbon taxation -
https://www.youtube.com/watch?v=dNXTnXgVTk8
(word salad by Bill Morneau)
@andrewscheer believes in removing the carbon tax
and more fair approach to taxes
https://www.slideshare.net/paulyoungcga/2019-
election-income-inequality-august-2019 or
https://www.slideshare.net/paulyoungcga/2019-
election-liberal-party-of-canada-vs-conservative-
party-of-canada-august-2019
Who do you trust more to support reducing income
inequality?

26. GENDER PAY GAP
Source - https://www150.statcan.gc.ca/n1/pub/75-004-m/75-004-m2019004-eng.htm
• Harper’s policies supported FDI as well as other areas of the economy
• Harper’s policies supported wage growth - https://www.slideshare.net/paulyoungcga/canada-
wages-and-employment-july-2019-and-august-2019

27. GENDER PAY GAP
Source - https://www150.statcan.gc.ca/n1/pub/75-004-m/75-004-m2019004-eng.htm

28. INCOME SPLITTING AND THE FAMILY
Harper introduced many measures to support the family including those parents that decided to work p/t
• 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
•

29. GENDER GAP RANKING
https://data.oecd.org/inequality/income-inequality.htm or https://www.weforum.org/reports/the-global-gender-gap-
report-2018
Gender Gap Ranking / 2018
Gender Gap Ranking / 2015
• Trudeau went for quantity and not quality as such you can see by the failures of his govt -
https://www.slideshare.net/paulyoungcga/2015-cpc-vs-2019-lpc-are-canadians-better-off-in-2019
• Many females have chosen to work p/t to support their families. The CPC recognized the P/T work as such introduced
income splitting - https://www.slideshare.net/paulyoungcga/middle-class-and-quality-of-life-canada

30. JOB QUALITY

31. NOVA SCOTIA / INCOME INEQUALITY
Source - https://www.canadianmanufacturing.com/operations/rethink-nova-scotia-
social-policies-to-reduce-rising-income-inequality-study-248733/
Source -
https://www.statista.com/statistics/607879/gdp-
distribution-of-nova-scotia-canada-by-industry/
• Service sector jobs predominantly dominate the NS economy. There needs to be more emphasis on goods producing and
technology jobs
• NS could play a major part in getting goods to market. Export related jobs pay more on average than service sector jobs
https://www.joc.com/port-news/international-ports/investor-backs-sydney-nova-scotia-port-project_20190529.html

32. OTHER SOURCES
• If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA CGA

33. WHAT’S NEEDS TO BE DONE
• Governments need to start focusing on delivering of social welfare via value for money - https://www.slideshare.net/paulyoungcga/2019-
election-public-sector-efficiency-canada-july-2019
• 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 – (Tax fairness needs to be addressed - https://www.slideshare.net/paulyoungcga/2019-election-tax-
reforms-and-fairness-canada-august-2019
• 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 (Better alignment of education with jobs of today and tomorrow -
https://www.slideshare.net/paulyoungcga/2019-election-human-capital-and-skills-management-canada-august-2019
• 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.
• 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. - https://www.slideshare.net/paulyoungcga/2019-election-global-trade-and-wto-trade-fairness-canada-august-2019
• 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.
• Ending the globalist agenda - https://www.slideshare.net/paulyoungcga/rise-and-fall-of-globalization