Latest news with #FraserInstitute
Cision Canada
4 minutes ago
- Business
- Cision Canada
Top 20% of Canadian income-earning families pay 57% of all taxes
CALGARY, AB, July 17, 2025 /CNW/ - The top 20 per cent of income-earning families pay more than half (56.9 per cent) of total taxes including personal income, sales and property taxes, according to a new study published by the Fraser Institute, an independent non-partisan Canadian think-tank. "Despite the common misperception that top earners don't pay their 'fair share' of taxes, the reality is these households pay a disproportionately large share of the total tax bill," said Jake Fuss, director of fiscal studies at the Fraser Institute and co-author of Measuring Progressivity in Canada's Tax System, 2025. The key to understanding "fairness" is comparing the share of income earned by one group compared to their share of total taxes paid. By this objective measure, the top 20 per cent of income-earning families is the only group to pay a disproportionate share of the total tax burden compared to their share of income earned. Specifically, the study finds that the top 20 per cent of income-earning families pay a larger share of total taxes (56.9 per cent) than their share of income (47.8 per cent). "While the top 20 percent earn a large share of total income at 47.8 per cent, they pay an even higher share of total taxes (56.9 per cent)," Fuss said. Conversely, the bottom 20 per cent of income-earning families pay 1.9 per cent of total taxes while earning 4.8 per cent of the total family income in Canada. Indeed, the study found that all 80 per cent of income-earning families outside of the top 20 per cent paid less in total taxes than they earned in total income. "The assertion that the top 20 per cent of earners in Canada are not paying their fair share is simply not supported by the evidence," Fuss said. Follow the Fraser Institute on Twitter and Facebook The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Halifax and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit
Cision Canada
2 days ago
- Business
- Cision Canada
Median workers in Alberta could receive 72% more under Alberta Pension Plan compared to Canada Pension Plan
VANCOUVER, BC, July 15, 2025 /CNW/ - Moving from the CPP to a provincial pension plan would generate savings for Albertans in the form of lower contribution rates (which could be used to increase private retirement savings while receiving the same pension benefits as the CPP under the new provincial pension), finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. "Due to Alberta's comparatively high rates of employment, higher average incomes, and younger population, Albertans would pay a lower contribution rate through a separate provincial pension plan while receiving the same benefits as under the CPP," said Tegan Hill, director of Alberta policy at the Fraser Institute and co-author of Illustrating the Potential of an Alberta Pension Plan. Assuming Albertans invested the savings from moving to a provincial pension plan into a private retirement account, and assuming a contribution rate of 5.85 per cent, workers earning the median income in Alberta ($53,061 in 2025) could accrue a stream of retirement payments totalling $454,741 (pre-tax)—a 71.6 per cent increase from their stream of CPP payments ($264,968). Put differently, under the CPP, a median worker receives a total of $264,968 in retirement income over their life. If an Alberta worker saved the difference between what they pay now into the CPP and what they would pay into a new provincial plan, the income they would receive in retirement increases. If the contribution rate for the new provincial plan was 5.85 per cent—the lower of the available estimates—the increase in retirement income would total $189,773 (or an increase of 71.6 per cent). If the contribution rate for a new Alberta pension plan was 8.21 per cent—the higher of the available estimates—a median Alberta worker would still receive an additional $64,672 in retirement income over their life, a marked increase of 24.4 per cent compared to the CPP alone. Put differently, assuming a contribution rate of 8.21 per cent, Albertan workers earning the median income could accrue a stream of retirement payments totaling $329,640 (pre-tax) under a provincial pension plan—a 24.4 per cent increase from their stream of CPP payments. "While the full costs and benefits of a provincial pension plan must be considered, its clear that Albertans could benefit from higher retirement payments under a provincial pension plan, compared to the CPP," Hill said. The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit
Cision Canada
10-07-2025
- Business
- Cision Canada
Increases in labour productivity explain almost all gains in worker compensation over last 40 years in Canada
VANCOUVER, BC, July 10, 2025 /CNW/ - If Canada wants to increase worker compensation, then increases in labour productivity growth must be the policy focus for all governments, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. "Despite any claims to the contrary, the best available evidence clearly shows that gains in labour productivity explain almost all the gains in income," said Philip Cross, senior fellow at the Fraser Institute and author of Higher Labour Productivity is the Key to Faster Income Growth. Simply put, labour productivity is the ability to convert inputs (e.g. labour, raw materials) into useable goods and services. Generally speaking, for worker compensation (wages, benefits, etc.) to increase, Canadian workers must become more productive, meaning they're better at converting inputs into outputs for each hour worked. In other words, growth in labour productivity drives income growth. The study, which examines data from 1981 to 2024 (the latest year of available data), finds that a one-percentage point increase in labour productivity resulted in a 0.98-percentage point change in hourly compensation—which again, includes salaries, wages, pension benefits, etc. So it's not surprising that incomes (inflation-adjusted) in Canada are declining during Canada's current productivity crisis (labour productivity in Canada has increased by a mere 3.6 per cent since 2015 compared to, for example, 4.1 per cent in 2000 alone). "If governments in Canada want to help increase incomes and improve living standards, they must focus on policies to improve productivity," Cross said. The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Montreal, and Halifax and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit SOURCE The Fraser Institute
Yahoo
08-07-2025
- Business
- Yahoo
Howard Levitt: New Ontario rules will complicate the hiring process during an unemployment crisis
Canada is shedding jobs at an alarming rate. Ontario is among the hardest-hit jurisdictions, with burgeoning levels of unemployment not seen outside the pandemic in over a decade. A widely held opinion is that the imposition of 'beggar thy neighbour' policies from the United States is the root cause of this calamity. While it is possible that the tariff war is the match in the powder barrel, it is actually not the only culprit behind our present economic woes. Unfortunately, job creation in Ontario and across Canada had already been slowing and failing to keep up with population growth. I personally know numerous entrepreneurs and business owners that have fled for 'greener pastures' due to unfavourable business conditions, high costs and a needlessly dense regulatory environment which stifles growth. Leaving aside our personal accounts, the Fraser Institute has reported that between 2012 and 2022, one-in-20 head offices situated in Canada have shuttered, moved elsewhere, or merged with other companies. While our elected officials profess to be concerned with the recent spike in unemployment, for whatever reason they continue to busy themselves by enacting laws that exacerbate the crisis. A recent example of this baffling and longstanding trend is Bill 190, Working for Workers Five Act — which is set to take hold on Jan. 1, 2026. For the most part, the thrust behind this new law is to increase transparency in relation to publicly advertised job postings. Such requisites mandate that all job postings are to include an expected salary amount, and a notation confirming whether artificial intelligence is being used to screen applicants. Likewise, there is a positive obligation to inform each interviewed applicant of the final hiring decision, and to retain all records from the recruitment process for at least three years. If that was not enough in increasing administrative expense, the bill does not merely create new requirements, it also includes numerous prohibitions, such as forbidding would-be employers from including 'Canadian work experience' as a job requirement within a publicly advertised position. This legislation is both unnecessary and untimely. Even if you disagree with the sentiment, the law is fraught with easily exploitable loopholes and it lacks any enforcement mechanism. To name a few examples, the law does not apply to 'general recruitment campaigns' which I suppose means that if you simply advertise that 'help is wanted,' with nothing more, then the law does not apply to you. Perhaps more shocking is the fact the actual wording of the regulation fails to impose penalties for those who elect not to comply. Perhaps that is a good thing, but most Canadian companies and HR departments are too risk-averse to take advantage of that. For the few companies still looking to expand, the new rules add cost and complexity to the hiring process, with no real benefit being afforded to desperate job seekers. One would think that in these times our government should incentivize businesses looking to hire, as opposed to frittering away tax dollars to achieve the opposite result. Despite our own outlook on these new rules, it is still recommended that employers seek legal counsel to assist in interpreting the incoming law to get ahead of potential issues, which could be costly down the road. Howard Levitt: Judge awards more than $300,000 in constructive dismissal case Howard Levitt: Sometimes 'I quit!' is no resignation at all Minimally, employers should consider the following action items before the rules come into effect: Create templates for public adverts that incorporate salary ranges and other pre-employment information. If you employ AI technology during the recruitment process, then keep track of this information and ensure job postings disclose its use. Review and define salary ranges for vacant positions and ensure they are both realistic and available to applicants. Set up protocols and ensure that staff involved in the hiring process are aware they must communicate hiring decisions to all interviewed candidates within 45 days. Consider current hiring practices to determine if publicizing job vacancies is effective or should be avoided altogether. Howard Levitt is senior partner of Levitt LLP, employment and labour lawyers with offices in Ontario, Alberta and British Columbia. He practices employment law in eight provinces and is the author of six books, including the Law of Dismissal in Canada. Stephen Gillman is a partner at Levitt LLP. Sign in to access your portfolio
Toronto Sun
08-07-2025
- Business
- Toronto Sun
Immigration grew six times faster over past decade: Study
Fraser Institute study blamed unchecked Trudeau-era immigration policies for recent spike in unsustainable immigration International arrivals at Toronto's Pearson airport. Photo by Jack Boland / Toronto Sun OTTAWA — Canada's immigration levels grew six times faster over the past decade than it did from the turn of the century, says a new Fraser Institute study. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The numbers, which include temporary foreign workers and international students, are contained in a new report entitled Canada's Changing Immigration Patterns, 2000–2024. 'Immigration, after 2000 and especially after 2015, is characterized by substantial increases in the absolute number of immigrants admitted, as well the share admitted as temporary foreign workers and international students,' authors Jock Finlayson and Steven Globerman wrote in the study. Between 2000 and 2014, annual immigration in Canada was around 618,000 people, but between 2016 and 2024 — excluding the pandemic-impacted 2020 — immigration more than doubled to around 1.4 million annually. These increasing numbers can be directly attributed to changes in government policy, the study points out — specifically mentioning 2014's International Mobility Program (IMP), which allowed employers to fill gaps in lower-paying jobs with temporary foreign workers. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. 'A key development shaping immigration policy under the Liberal government of former prime minister Justin Trudeau was the work done by the Advisory Council on Economic Growth, appointed in early 2016, ' the study states, adding the Trudeau government welcomed their recommendations enthusiastically. The council called for stark increases in permanent immigration to Canada, increasing from 300,000 per year in 2016 to 450,000 in 2021 — as well as increasing the share of economic migrants admitted into Canada. 'At the same time, Ottawa stepped away from providing meaningful policy and administrative oversight of the burgeoning international education 'industry,'' the study continued. 'Thanks to this hands-off approach, Canadian universities, colleges, and technical and language schools ramped up enrollment of international students, essentially without limit.' This advertisement has not loaded yet, but your article continues below. Unchecked immigration and international student enrollments greatly contributed to Canada's cost-of-living and housing crisis, with foreign students snapping up the limited number of housing rentals and part-time jobs in many cities. Foreign students not fortunate enough to find housing ended up in shelters and even living rough on the streets, relying on social services and food banks to support their studies. As the pandemic response began ramping down in 2021, demand for workers prompted employers and lobbyists to push for even easier measures to hire foreign workers, particularly those in hard-hit industries like hospitality, retail and leisure. Rules limiting employment hours for international students were also loosened, allowing them to work up to 40 hours per weeks. At the same time, the federal government used international students with Canadian credentials and so-called 'temporary' foreign workers with Canadian experience to meet its aggressive permanent immigration targets. 'In fact, more than half a million holders of a temporary visa transitioned to permanent residency status between 2021 and the end of 2023, representing one third of total admissions over that period,' the study stated. bpassifiume@ X: @bryanpassifiume Canada Canada Toronto Blue Jays Canada Sunshine Girls
