Economic Inequality In Canada

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Introduction Over the years there has been many debates on whether the tax should be taxed more to improve the economic inequality in Canada. The debate over this topic has been endless and it truly is a question whether it would actually impact the economic standing of Canada. The advantages and disadvantages in this subject is vast. Economic inequality in Canada has created problems in society and it greatly influences the rich and the poor and affecting their way of living. Taxation Taxes are fees that are placed on products and an individual’s income that the government has imposed. Taxes first began in 1917 as a way to temporarily finance the war, however the government found it beneficial to have these taxes. The main purpose of these…show more content…
Many people also question that by increasing taxes only on the rich would unethical to do. The money that the high-income earners earn is through their own hard work and it would be unethical to charge them more. The rich are already being taxed a larger amount than the rest of the other income earners. This also creates a divide between the rich and poor. The wealthy may feel that were treated unfairly leading them to resent the…show more content…
Inequality provides an incentive for others to work harder and more income is seen as a reward for working hard, this stimulates the economy. China has been a country of economic boom and it has driven demand for Canada’s natural resources; increasing Canada’s revenue. After the recession, economic growth became slow. An article states “ inequality grew faster in Canada from the early- 1990’s to 2010 than in all but one other OECD country. The concentration of income in the hands of the richest 1 per cent was 10.6 per cent in 2010, down slightly from the pre-recession peak of more than 12 per cent, but up sharply from 7.1 per cent in 1982.” (Mckenna,2014). The rich continually hold most of the income in the country; the top 20 % of income earners have 70 % of net worth. The top 1% between Calgary and Toronto according to Brian Murphy earned more than half of the income. Income inequality also poses problems in the economy, it can be liked to the ones health. Low-income earners are more likely to not seek for medical treatment and this results to fragile health. Houses also pose a large problem; prices and taxes continue to inflate each year. Many are in debt and some are unable to may

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