Alberta Income Inequality Is Worse Than In The U.S.

[mentalfloss]

Alberta Income Inequality Is Worse Than In The U.S.

In Alberta, the rich keep getting richer, but where does that leave the rest of us?

StatsCan’s new survey of top income taxfilers shows Alberta leads the country when it comes to unequal income. In fact, Alberta is the only province in Canada where the top 10 per cent of the population take home more than half the income. In 2012, StatsCan's numbers show Alberta's top 10 per cent of earners took home 50.4 per cent of all income.

And if that sounds bad, consider this:

Alberta is now the only province in Canada more unequal than the United States. The top 10 per cent of earners south of the border raked in 48.2 per cent of all income in 2012.

Perhaps this shouldn't come as a surprise. We recently reported that Alberta is projected to have the second largest economy in Canada within three years, surpassing Quebec despite having half the population.

StatsCan's numbers also show Alberta has overtaken Quebec in terms of top earners. In 2012, Alberta had 502,000 earners in the top 10 per cent, while Quebec had 429,000.

Energy-rich provinces across the country are seeing similar spikes in inequality, too.

Thanks to what is undoubtedly fueled by an offshore oil boom, Newfoundland’s top 10 per cent took home 31.5 per cent of all income in the province in 2012, compared to just 22.4 per cent in 2006.

The number of Newfoundlanders among top 10-per-cent earners nearly doubled in that time, to more than 39,000 in 2012, from around 22,000 in 2006.

Saskatchewan has also seen a spike in top earners, and a spike in inequality. The number of top 10% earners jumped to just under 91,000 in 2012, from around 59,000 in 2006.

Saskatchewan’s top 10 per cent of earners took home 34.5 per cent of all income in 2012, up from 29 per cent in 2006.

By contrast, Ontario, which has far and away the largest number of top 10 per cent earners (1.06 million at last count), has seen income concentration reduced over the past six years.

Ontario’s top 10 per cent took home 37.2 per cent of all income in 2012, compared to 40 per cent in 2006.

Overall, the top one per cent of earners in Canada took home 10.3 per cent of all income in 2012, down from 10.6 per cent a year earlier.

Alberta Income Inequality Is Worse Than In The U.S.

 

[petros]

10%ers are 10X worse than 1%ers?

 

[mentalfloss]

Let the gap keep growing.

That's good for your economy. :lol:

 

[Ludlow]

Show me sweep de flo.

 

[taxslave]

So basically 10% of the workers are carrying the load for the other 90%

 

[gerryh]

so, how much money do you need to earn to be in this "top 10%" club?

 

[skookumchuck]

I think we should insist that all the highest paying Alberta jobs go only to dippers. Would quiet them until their PHD types find something new to whine about.

 

[grainfedpraiboy]

so, how much money do you need to earn to be in this "top 10%" club?

No fixed amount. He is saying the top 10% of the highest wage earners and what the average is between them.

And while I understand and sympathize with the sentiment and even agree that all business owners should strive to pay living wages at a minimum, I worked way harder than any employee ever did and after a long time and a loss of a lot of living I am just starting to see the reward for my efforts and payoff for the investment risks I took.

Why should I be penalised for that or made out to be some sort of pariah?

When I was young and my friends got car loans and big mortgages in the suburbs I drove a beater (still do) and lived in a tiny townhome off base. When they drew on their HELOCS and went on vacations I drove a taxi at night, weekends and holidays when not deployed and used the money to buy rental properties and now the university types who snubbed their noses at me in the cab call me "boss". When I went into business for myself I took huge risks, temporarily mortgaged the townhome and worked 80 hours a week on average without exaggeration. Aside from the business I paid cash for everything in life and took on no debt regardless of interest rates. We lived within our means. There was times in the late 1980s I picked through other people's trash to find bottles so I could supplement my working income and afford to buy goddamned formula for the kids.

Now I have a nice rural property, the wife has a credit card with a 60K limit I don't worry over and have urban real estate investments along with an apiary for fun and business for serious cash flow. I self educated myself and make a real good living but still work twice as hard and long as my employees but the light at the end of the tunnel is Freedom 52 and full retirement with a passive income of $10,000 per month, few expenses, no debt and around 6 million in assets. I could keep going until 70 and shoot for 30 million in assets and put myself in the top 1 percent of global earners but there is too much I want to do otherwise.

My employees, family and most of my friends will be working into their 70s and beyond bitching about the income disparity and telling me over and over how "lucky" I am to be well off, to travel to live in a nice home but it wasn't luck. It was sacrifice, hard work, a supportive wife and good ole fashioned grit to keep pushing on when everything looks hopeless.

Stealers Wheels - Stuck In The Middle With You - Offical Video + Lyics - YouTube

 

[gerryh]

still haven't got an answer. Percentages mean sweet fu ck all. What are the hard numbers? 50k?60k?70k?80k?90k?100k?120k?150k?250k?500k?

 

[petros]

Another crying towel thread.

By contrast, Ontario, which has far and away the largest number of top 10 per cent earners (1.06 million at last count), has seen income concentration reduced over the past six years.

Ontario’s top 10 per cent took home 37.2 per cent of all income in 2012, compared to 40 per cent in 2006.

still haven't got an answer. Percentages mean sweet fu ck all. What are the hard numbers? 50k?60k?70k?80k?90k?100k?120k?150k?250k?500k?

Pick the one that feels the most evil and run with it.

 

[grainfedpraiboy]

still haven't got an answer. Percentages mean sweet fu ck all. What are the hard numbers? 50k?60k?70k?80k?90k?100k?120k?150k?250k?500k?

There is probably no hard number because the guy at the top of the 10 percent could make 50 million and the guy at the bottom of the top 10% could make 100K and the whole group averages 180K. The point is 50%+ of all the money is earned by 10 percent of the people. It doesn't matter if you are in an economy where the top wage earners make a single dollar a year or million of them when talking about income disparity.

 

[Toro]

Alberta Income Inequality Is Worse Than In The U.S.

In Alberta, the rich keep getting richer, but where does that leave the rest of us?

With rising incomes faster than anywhere else in Canada.

This is bad why?

 

[gerryh]

With rising incomes faster than anywhere else in Canada.

This is bad why?

because the welfare cheque that mentalmidget relies on isn't increasing at the same pace.

 

[mentalfloss]

What welfare cheque cherry ache?

 

[petros]

Figurative relating to stagnancy I'd assume.

 

[gerryh]

What welfare cheque cherry ache?

ahhhhhh... is that why you're so upset? You don't qualify for the "low income" perks but you're really too lazy to work harder to make enough money to get the things that Grain and taxslave have?

 

[mentalfloss]

ahhhhhh... is that why you're so upset? You don't qualify for the "low income" perks but you're really too lazy to work harder to make enough money to get the things that Grain and taxslave have?

What are you talking about?

We make enough money to support a family just fine.

I don't even complain about what I get or do not get from the government.

I'm capitalistic like dat.

 

[petros]

What are you talking about?

We make enough money to support a family just fine.

I don't even complain about what I get or do not get from the government.

I'm capitalistic like dat.

You whine on somebody's behalf? Is that it?

 

[grainfedpraiboy]

The following letter is likely a hoax from 2008 though it has been tagged to Mike Crowley of Crowley, Crisp & Associates (14 employees out of business now) though he officially denies it but in 2012 the CEO of Westgate Resort did send an admitted modified copy of this letter to his employees and I also keep a copy tucked away for modifying purposes in the event of a Green Party NDP government which would I wouldn't bother to fight and would just get out of business. Overall though, the letter certainly sums up the feelings of the small business man in Canada and the US today.

To All My Valued Employees,

There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn't pose a threat to your job. What does threaten your job however, is the changing political landscape in this country.

Of course, as your employer, I am forbidden to tell you whom to vote for - it is against the law to discriminate based on political affiliation, race, creed, religion, etc. Please vote who you think will serve your interests the best.

However, let me tell you some little tidbits of fact which might help you decide what is in your best interest.

First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is a back story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You've seen my big home at last year’s Christmas party. I'm sure all these flashy icons of luxury conjure up some idealized thoughts about my life.

However, what you don't see is the back story.

I started this company 12 years ago. At that time, I lived in a 300 square foot studio apartment for 3 years. My entire living space was converted into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you.

My diet consisted of Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn't have time to date. Often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business — hard work, discipline, and sacrifice.

Meanwhile, my friends got jobs. They worked 40 hours a week and made a modest $50K a year and spent every dime they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the Nordstrom's for the latest hot fashion item, I was trolling through the Goodwill store extracting any clothing item that didn't look like it was birthed in the 70's. My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, some day, I too, will be able to afford these luxuries my friends supposedly had.

So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm, I don't. There is no "off" button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, ****, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1 year old special-needs child. You, of course, only see the fruits of that garden — the nice house, the Mercedes, the vacations... you never realize the back story and the sacrifices I've made.

Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail-out all the people who didn't. The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.

Yes, business ownership has is benefits but the price I've paid is steep and without wounds.

Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I don't pay enough. I have state taxes. Federal taxes. Property taxes. Sales and use taxes. Payroll taxes. Workers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000 for quarterly taxes. You know what my "stimulus" check was? Zero. Nada. Zilch.

The question I have is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare check? Obviously, government feels the latter is the economic stimulus of this country.

The fact is, if I deducted (Read: Stole) 50% of your paycheck you'd quit and you wouldn't work here. I mean, why should you? That's nuts. Who wants to get rewarded only 50% of their hard work? Well, I agree which is why your job is in jeopardy.

Here is what many of you don't understand ... to stimulate the economy you need to stimulate what runs the economy. Had suddenly government mandated to me that I didn't need to pay taxes, guess what? Instead of depositing that $288,000 into the Washington black-hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can forget it now.

When you have a comatose man on the verge of death, you don't defibrillate and shock his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Suddenly, the power brokers in Washington believe the mud of America are the essential drivers of the American economic engine. Nothing could be further from the truth and this is the type of change you can keep.

So where am I going with all this?

It's quite simple.

If any new taxes are levied on me, or my company, my reaction will be swift and simple. I fire you. I fire your co-workers. You can then plead with the government to pay for your mortgage, your SUV, and your child's future. Frankly, it isn't my problem anymore.

Then, I will close this company down, move to another country, and retire. You see, I'm done. I'm done with a country that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

While tax cuts to 95% of America sounds great on paper, don't forget the back story: If there is no job, there is no income to tax. A tax cut on zero dollars is zero.

So, when you make decision to vote, ask yourself, who understands the economics of business ownership and who doesn't? Whose policies will endanger your job?

Answer those questions and you should know who might be the one capable of saving your job. While the media wants to tell you "It's the economy stupid" I'm telling you it isn't.

If you lose your job, it won't be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steamrolled the constitution, and will have changed its landscape forever. If that happens, you can find me in South Caribbean sitting on a beach, retired, and with no employees to worry about.

Signed,
Your boss

 

[Cannuck]

Glad I don't work for that twit.