Photo: Adrian Wyld, The canadian Press
The parliamentary budget officer, Yves Giroux, expected that the figures will increase because the previous estimates were clearly too low, but the magnitude of this increase was amazing.
The concentration of canadian heritage held by the “1 %” of Canadians, the wealthiest is more important than previously believed, reveals a report by the parliamentary budget officer (DPB), which is based on a new modeling approach.
According to the Office of the parliamentary budget officer, the “1 %” holds approximately 25.6 % of the wealth in Canada, or about 3000 billion dollars, compared to 13.7 % according to the above methodology.
“The distribution of wealth between households is highly skewed in favour of the richest families, the report notes. In Canada, a small proportion of families located at the top of the distribution has a net worth on a scale without equal to the median net worth of the country. “
The amount of money held by all canadian families amounted to 11 700 billion, if all assets were liquidated and all liabilities are repaid, the report argues. This amount is greater than about five times the annual GDP of Canada, says the document. The asset class was the most important of the real estate, valued at 5800 billion, while its equivalent for the liabilities were the mortgages, estimated at 1500 billion.
The report reveals that canadian families, which make up the 0.5 % of the richest hold 20.5 per cent, or 2,400 billion, of the total wealth. A significant increase compared to the previous estimate of 9.2 %.
The parliamentary budget officer, Yves Giroux, expected that the figures will increase because the previous estimates were clearly too low, but the magnitude of this increase is amazing, he said in an interview. “When we saw the figures from the Statistics Canada survey, the person most wealthy y estimated his wealth at $ 27 million, while we know that there are people in Canada who are richer than this, he noted. We were not surprised to see upward revisions, but in this measure, and I was personally surprised to see [that they were also important]. “
The recalculation incorporates information from the list of the richest people in 2017 of the magazine Canadian Business, with figures of the survey on the net value of the 2016 Statistics Canada, and his report on the accounts of the national balance sheet in the fourth quarter of 2016.
The federal office is interested in new ways to estimate wealth in Canada after receiving the request for estimate, during the federal elections of last year, revenue that could be generated with the imposition of a tax on the wealthiest families. He also spoke of the continued interest of legislators for tax reform.
Last September, the federal New democratic Party proposed a wealth tax the annual 1 % on fortunes valued at more than $ 20 million, saying it could generate about $ 70 billion over the next 10 years. Unlike an income tax, a wealth tax would apply to all assets, including real property, and would seek to reduce the inequalities in financial Canadians.
At the time, the DPB has published figures indicating that the measure could generate $ 5.6 billion in fiscal year 2020-2021, and to reach almost 9.5 billion in 2028-2029. This amount was derived using certain assumptions, and, although it is likely to be higher using the database update, it is difficult to say what it would be at least to proceed with new calculations, in-depth, pointed out the analyst-in-chief of the DPB, Nigel Wodrich.
The DPB has indicated that he did not yet know if the database on the heritage would be updated regularly.