Wealthiest Income Canada - 2016

Wealthiest Income Canada Taxation and Income AnalysisBy: Paul Young, CPA, CGADate: November 21, 2016

DisclaimerThis presentation discusses Wealthiest Canadians

Paul Young - Presenter

BioCPA/CGA25 years of experience in Academia, Industry and Financial solutionsYoutube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

AgendaWho are the top 1%Tax Bracket

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Top Income Earner/CanadaHeres what it takes to be among Canadastop earners:Top 1 per cent:income of at least $222,000. A total of264,030 tax-filers earnedthat 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.

http://globalnews.ca/news/2316192/heres-what-we-know-about-canadas-highest-earning-1/

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Top Income Earner/CanadaCombined Provincial/Territories range 47% to 55%NB has highest combine Personal Income Tax in Canada269K 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. Canadas 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

http://www.kpmg.com/ca/en/issuesandinsights/articlespublications/pages/taxratespersonal.aspxhttp://www.theglobeandmail.com/news/national/canadas-1-per-cent-club-unchanged-but-faces-prospect-of-bigger-tax-bill/article27077119/

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Top Income Earner/taxes -2013 and 2014

Source Stats Canada

Redistribution of Income:

Facts:Top 1% account for 20% of the Federal Income TaxCorporate Tax account for 1/3 of the transfer paymentsEqualization benefits come from the have not promises via royalties as well as other revenue sources

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Paul Young (PY) - gDP / Wealth Flow

Factors in play that impact wealth distributionCompanies invest into projects as part of return on investment for their shareholdersPensions Funds like CPP investment in companies for their return on investmentWealth 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 SalesExports are about of GDP. Canada needs exportsCanada needs FDI in order to develop its resources, manufactured goods, build transportation systems

http://www.statcan.gc.ca/daily-quotidien/160426/dq160426a-eng.htm9

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? orhttps://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

SummaryTop 1% pay over 50% of the income to taxationTop 1% earned their wealth through investment in stocks, bonds and real estateTop 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 taxesTop 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 returnsBad policies hurt the low to middle class worst than the 1%Carbon Taxation will force up household spending by $1,200 to $1,500Hikes 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 waysDividends payoutCapital Investment (debt, working capital or stock issuance)Share buyback

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-canadaLabor Market and Policies - http://www.slideshare.net/paulyoungcga/government-policies-labour-market-canada-67545343Trickle down economics - http://www.slideshare.net/paulyoungcga/what-is-trickle-down-economics Guarantee Income - https://www.youtube.com/watch?v=0UrgSeNDCPo