Tuesday, June 14, 2005
Did the Reagan tax cuts cause income inequality in Canada too?
Paul Krugman's preferred authority on US income distribution, Emmanuel Saez, reports his findings on Canada...
Paul Krugman's preferred authority on US income distribution, Emmanuel Saez, reports his findings on Canada...
... Since the late 1970s, top income shares have been increasing steadily and the very top shares are now as high as in the pre-war era. As in the United States, the recent increase in top income shares is the consequence of a surge in top wages and salaries. As a result, series on the composition of incomes within the top income groups from 1946 to 2000 show a dramatic increase in the share of wages and salaries.So I guess the answer is no, it seems not.
The parallel evolution of top income shares in Canada and the United States, associated with much more modest marginal tax rate cuts in Canada, suggests that the upward trend in top shares in Canada since the late 1970s cannot be explained by tax cuts...
