Tuesday 13 December 2011

Save me from the Occupy: 99% can't take that to the bank

There is much talk of salaries, capital, and income these days.
The Occupy activists tell us that we are the 99%. It doesn't seem right that statistics are bandied about the way they are. I decided to do some research. Most of us in the middle class pay most of the taxes. Those of us who are retired, also volunteer with those in need.

1% of the world’s population control 99% of the world’s wealth
Writers are posting facts, such as millionaires (the 1%) control 40% of the world's wealth, not 99%. But this isn't so for Canada. For those of us who are not in the top10% and most of us aren't in the bottom 10%. We lie somewhere in between.

There is a different between personal wealth, which includes your assets minus your debt. Economists define marketable wealth in terms of real estate, stocks and bonds. Income refers to your salary, and includes income from investments: dividends, interest, royalties and rental income.

Occupy This
Some write [Occupy Thisthat, like me, they believe that you are paid according to your education, experience, knowledge and skills. Most of us fall into the category of hard-working, tax-paying individuals, who support one another in society. I cannot put myself into the 99%. I believe that we are all part of Canadian society, and we all help one another. What happened in the US did not happen here in Canada. Those who speak of the 1% are sadly mistaken. The bankers who broke the system are not paying for it. Those of us who enjoy our parks are footing the bill for the occupiers. In Ottawa, it was estimated to be $39,000.

The Lower Half of the Top 1% in the USA
The 99th to 99.5 include physicians, attorneys, upper middle management, and small business people who have done well. Physicians, of course, graduate with huge student loans, the cost of education being astronomical. On earned income in this group around 25% to 30% of total pre-tax income will go to Federal, State, and Social Security taxes, leaving them with around $250k to $300k post tax.

The Upper Half of the Top 1%
Unlike those in the lower half of the top 1%, those in the top half and, particularly, top 0.1%, can often borrow for almost nothing, keep profits and production overseas, hold personal assets in tax havens, ride out down markets and economies, and influence legislation in the U.S.

It's not the top 1% in the US
We must go beyond the top 1%
  • The top 1 percent paid an average income tax rate of 24% in 2009. 
  • Almost exactly the rate paid by those making $500,000 to $1 million. 
  • Those in the $1 million to $10 million bracket paid a higher rate, 26 percent. 
  • Those making more than $10 million paid a significantly lower rate, 23.3 percent.
Canadian Public Salary Disclosures: 2011 (reflecting 2010 salaries - Source: government of Canada)
  • Annual Salary: Supreme Court of Canada Chief Justice: $361,300
  • Annual Salary: Supreme Court of Canada Puisne Judges: $334,500

Income and earnings

Release no. 8: May 1, 2008

Economics & Family and incomes
All of these statistics are from StatCan. I created the graphs.


Government of Canada - Proactive Disclosure
The Government of Canada requires the mandatory publication on departmental Web sites of travel and hospitality expenses for selected government officials; contracts entered into by the Government of Canada for amounts over $10,000, the reclassification of positions and grants and contribution over $25,000.

Salary for Canadians, according to the 2006 Census Data (reporting 2005 income). This is affected by many factors.

63,000 public servants hit six figures: Annual Sunshine List discloses salaries
Public servants, specifically 63,761, make $100,000 or more a year (in salary and bonus alone), according to the annual Sunshine List. It has grown by 18% over the previous year and more than 90% over three years.

Chair of Ottawa-Carleton District School Board earned $210,072:

OCDSB boss quits to be with family | Ottawa & Region

25 Aug 2010 –  Dr. Lyall Thomson has already left his $210,072 job to be with ailing family in Alberta, Ottawa-Carleton District School Board trustees said.

Salary for Ottawa-Gatineau Residents, 2005



InfoWayDetails of Kramer’s $517,428 pay package – including a $380,000 base salary – are available on the Internet for all to see.

Provincial Governments Salary and Expense Disclosure

In Quebec, as a rule, public-sector salaries are considered personal information, making it is illegal under the province’s access to information law to disclose pay figures. Offenders who reveal public-sector salaries can be fined between $200 and $2,500.

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