Saturday, February 02, 2013
Statistics Canada Releases Data on High Income Earners
By BEIF Team
This past week, Statistics Canada released some data on high income earners in Canada from the years 1982-2010. The data is a follow-up to information contained in the research report ‘A Profile of High Income Canadians, 1982 to 2004’, released in September 2007.
The newest data reveals that “the top 1% of Canadian tax filers accounted for 10.6% of the nation’s total income in 2010, down from a peak of 12.1% in 2006.” Yet this is still higher that their share in the early 80’s where “1% of tax filers held 7% of the total income reported by all tax filers”. In general, the data largely agrees with data from other industrialized nations that show that the gap between Canada’s middle and high income earners has grown over time.
A few noteworthy points are:
- It took an annual income of at least $201,400 in 2010 to be in the top one percent of, while it took more than three times that income (at least $685,000) to be counted in the top 0.1 percent. To be counted among the top 0.01 percent, one needed at least $2,571,300.
- In 1987, it took one far less to be counted among the top. For example, a minimum of $86,000 saw one in the top 1 percent, while $226,300 saw one in the top 0.1 percent and $672,600 saw one in the top 0.01 percent.
- While threshold values mentioned above are the minimum, the average and median incomes were far higher for the top 1 percent and above. Those in the top 0.01 percent had an average income of $5,114,500, while those in the top 0.1 percent had $1,519,000 and those in the top 1 percent had $429,600.
- The ratio of average income of the top 1 percent to the bottom 99 percent stood at 11.74 in 2010. This ratio has been declining from its highest (13.59 in 2006), but is still much higher than it was in 1987 (7.73).
Also important to researchers is that StatsCan has used its CANSIM data dissemination tool (now free of charge, available here) to provide a tremendous range of much more detailed breakdowns.