Canada’s Richest 1% Saw Share of Income Fall

Canada’s last recession dented the fortunes of the country’s richest 1 percent, while the gap between that group and the rest of the country widened over the last two decades, government tax data show.

The incomes of the top 1 percent of taxpayers equaled 10.6 percent of the national total in 2010, after growing from 7 percent in the early 1980s to a peak of 12.1 percent in 2006, Statistics Canada said today from Ottawa.

The median income for the richest of Canada’s 25.5 million taxpayers was C$283,400 ($281,000) in 2010, about 10 times greater than the C$28,400 median of the remaining 99 percent, according to the report. The income disparity has widened from 1982 when the top 1 percent’s median income of C$191,600 was about seven times larger than the rest.

Canada’s economy experienced a recession from the fourth quarter of 2008 through the second quarter of 2009, the first such contraction since 1990-91.

The proportion of women among top 1 percent in 2010 grew to 21 percent, almost double the 11 percent share reported in 1982, Statistics Canada said.

The share of federal and provincial taxes paid by the richest Canadians has also grown, to 21.2 percent in 2010 from 13.4 percent in 1982.

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; David Scanlan at dscanlan@bloomberg.net

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