About the Broadbent Institute. Get Involved
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1 EQUALITY PROJECT
2 About the Broadbent Institute Founded in 2011, with the endorsement of Jack Layton, the Broadbent Institute is Canada s newest resource for social democrats seeking change. The Institute is committed to free, equal and compassionate citizenship in Canada the very heart of what social democracy is about. We support, develop and promote social democratic principles, equipping a new generation of progressive campaigners and thinkers with the training, education, and arguments they need to make positive change. Our Equality Project is at the centre of our Institute s core mission. Get Involved Inequality isn t inevitable. It s a political choice. Only by insisting our governments pursue policies that are equitable for all Canadians can we ensure a fair, safe, healthy, and vibrant democracy for Canada. To make that happen, you need to be involved. The poll findings in this report lay the groundwork for the Broadbent Institute s Equality Project which will engage Canadians and decision-makers in a renewed agenda to end inequality in Canada. Join the Broadbent Institute today and help us lead progressives to victory as we develop social democratic policy, equip a new generation of progressive campaigners and thinkers through training and education and propose solutions for a more equal Canada. Visit broadbentinstitute.ca to learn more about our Equality Project, to get involved, to sign up for our e-updates, and to make a donation. Send feedback and suggestions to equality@broadbentinstitute.ca or message us on Twitter or Facebook. 2
3 Executive Summary Why this poll? Canadians take pride in our history of building a nation that values fairness and equality. However, these essential Canadian values are threatened by the growing gap between the rich and the rest of us. As part of our Equality Project, the Broadbent Institute commissioned a poll by Environics Research to survey Canadians attitudes toward income inequality. Findings show that over three-quarters of Canadians (77%) deem income inequality a serious problem and they are ready to find and take part in solutions. Individuals from all walks of life indicate they are willing to do their part through fair and equitable taxation to protect our public programs, but they want corporations to do their part too. Moreover, they re asking their governments to take responsibility and make income inequality a priority. The Broadbent Institute concludes that any government or political party that prioritizes the tackling of income inequality will not only reflect current public opinion, they will garner Canadians support because they will finally be addressing an issue that represents a fundamental Canadian value: equality. Canada needs to take immediate action to reduce the problem of income inequality. 71% of Canadians think that the widening gap between rich and poor undermines Canadian values. If left unchecked, income inequality will have a long-term, negative impact by reducing our: 79% 75% 72% 71% 67% Standard of Living Community Safety Quality of Healthcare & Public Services Employment Opportunities for Young People Democratic Principles 3
4 Time to tackle income inequality Research from a wide range of respected research bodies makes clear that Canada is becoming a far less equal society. 1 However, despite this mounting evidence our governments have so far chosen to ignore the issue. New national public opinion research conducted for the Broadbent Institute by Environics Research reveals that Canadians of all political stripes are ahead of their governments in wanting to resolve the problem of growing income inequality. Canadians are ready for solutions. 2 Most Canadians express a deep concern about widening income inequality, saying it doesn t reflect Canadian values. They express a strong desire for governments to place a higher priority on reducing this inequality. 71% of Canadians believe the widening income gap undermines Canadian values According to the survey results, individuals care about worsening income inequality because they believe it has an impact on the safety of their community, on the health of the country, and on the vibrancy of our democracy. 4 1 Statistics Canada, Conference Board of Canada, Canadian Centre for Policy Alternatives, the OECD. 2 Environics Research surveyed 2,000 Canadians between March 6 and 18, 2012 to conduct a telephone poll on attitudes toward income inequality. The results of a survey of this magnitude can be considered accurate to within plus or minus 2.2 percent, 19 times out of 20.
5 Valuing equality so highly, Canadians are prepared to do their part. Most Canadians are ready and willing to contribute by paying higher taxes if it means their government would protect public services and make reducing income inequality a higher priority. The 58% majority 71% 72% of Canadians are willing to pay more to protect social programs These findings indicate that concern about income inequality in Canada is not simply a left-right ideological issue. When it comes to the desire to protect public services and reduce income inequality, Canadians are more united than we are polarized. Support for government action to reduce income inequality cuts across all party lines, geographic divides, income levels, and gender or age differences. In other words, only a small minority of Canadians find it acceptable that income inequality is getting worse, and that our governments are doing nothing about it. The majority of Canadians are ready to embrace solutions. 5
6 The downside of Canada s growing gap We asked Canadians for their views on whether the growing gap between the rich and everyone else is a problem and the response was conclusive. More than three-quarters of Canadians see the growing gap between the rich and everyone else as a serious problem with long-term negative consequences for our society. We asked Canadians if they agree with this statement: The widening income gap is a big problem for Canada that will have a lot of long-term consequences for society. 77% of Canadians agree. Women are slightly more likely than men to agree the gap is a problem but the difference isn t huge (81% vs. 73%). NDP voters almost unanimously (89%) agree that the widening gap is a serious problem, but it s interesting to note that a clear majority of Conservative voters (59%) also feel this way. These numbers prove that concern about income inequality cuts across partisan lines. Concern about income 81% 77% 73% think a widening income gap big is a problem for Canada We also asked Canadians if they agreed with this statement: There s nothing wrong with a widening income gap, it just means people have to work harder at being rich themselves. A minority only 20% of Canadians agreed with this view. 80% BC 70% AB 6
7 Is the widening gap a problem? When we asked Canadians if they thought growing income inequality would cause problems for Canada, they resoundingly answered yes. More than three-quarters of respondents (79%) said that the gap will eventually lead to declining living standards, followed by increased crime (75%), the erosion of public health care and other public services (72%), as well as fewer opportunities for young Canadians to do as well or better than their parents (71%). A majority of Canadians (67%) also think the growing gap between the wealthiest Canadians and everyone else could erode the quality of our democracy. inequality cuts across all regions 78% 76% 79% 81% MB SK ON QC ATL 7
8 Income inequality: undermining Canadian values No matter where you live or how much you make, the growing gap is viewed as decidedly un-canadian. We asked: In the last 10 years, the rich have been getting richer in Canada leaving both middle and lower income people behind. Do you believe this widening income gap between the wealthy and everyone else is something that is consistent with Canadian values or is it something that undermines Canadian values? The majority of Canadians (71%) say this trend undermines Canadian values. Even wealthy Canadians households earning $100,000 a year are just as likely as lower-income Canadians to agree the widening income gap undermines Canadian values. The research showed that a majority of respondents think that it s time for governments to tackle the problem of income inequality. A large number of Canadians either want governments to make income inequality their top priority (42%) or a medium priority (47%), while only 9% of Canadians want governments to focus on other issues. Undoubtedly the vast majority of Canadians want to see income inequality on their governments poltiical radar. Notably, in an era where the federal government has focused on narrow casting policies that favour older voters, more than half (51%) of Canada s seniors (age 60 and over) told Environics they would like government to rank income inequality as a top priority. The older people are, the more they tend to see income inequality as a top priority. They are concerned about the legacy they are leaving to future generations of Canadians. 2 out 3 of Canadians are willing to pay more to protect our social programs 83% support higher taxes for the richest Canadians 8
9 Canadians willing to do their part Perhaps the most important finding from this poll is that Canadians are willing to pay higher taxes to protect social programs that they value, which in turn would help reduce income inequality. We asked: Would you personally be very, somewhat, not very or not at all willing to pay slightly higher taxes if that s what it would take to protect our social programs like health care, pensions and access to post-secondary education? Two-thirds (64%) of Canadians said yes. Almost one-quarter (23%) are very willing to pay more taxes to save social programs; 41% are somewhat willing to pay slightly more tax. Clearly it shows Canadians are willing to do their part to support public services, if the government takes a reasonable approach to taxation. Interestingly, even a majority of Conservative voters (58%) are at least somewhat willing to pay higher taxes to protect social programs, while Liberal and NDP voters are even more supportive: 72% of them would pay more. This attitude toward paying slightly higher taxes is reflected equally in high-income and middle income Canadian households. It s only their governments who 73% are offside. An overwhelming majority of Canadians (83%) are in favour of increasing income taxes on the wealthiest 3 and those at high-income levels are just as supportive of this proposal. of Canadians want corporations to pay more Canada used to have an inheritance tax but it was scrapped in the 1980s. 4 Our research shows that most Canadians (69%) support the introduction of a new 35% inheritance tax on any estate valued above $5 million. Finally, the majority of Canadians want corporate Canada to play its part too. Almost three-quarters (73%) of Canadians support gradually increasing corporate tax rates back to 2008 levels even a majority of Conservative voters support this measure. 3 These results are based on a question that was asked to a split sample. Half of respondents were asked whether they support increasing income taxes on individuals earning more than $250,000, and the other half were asked whether they support increasing income taxes on individuals earning more than $500,000. The results were very similar for both options and the results presented here are based on the average of support for either of the two options
10 Conclusion The option of raising taxes to protect the social programs we cherish and to address income inequality has been absent from public debate for too long. While Canadians clearly see that change in tax policy is one way of dealing with income inequality they also want it to be fair and equitable. Most importantly, Canadians are far ahead of their political leaders in terms of seeing the relationship between Canada s rising income inequality and our declining living standards. They re looking to their governments for leadership to reduce this inequality, to protect public services that we all rely upon, and to take a second look at tax options that could help preserve our way of life. While Canadians are willing to do their part by paying higher taxes to protect public programs, they also want the wealthy to do their part by contributing more income taxes and through the introduction of a new inheritance tax on the largest estates in Canada. They support requiring out of corporate Canada to do its part by paying 2008-level taxes. They re asking governments to do their part too by making income inequality reduction a priority. These opinions are widely shared by Canadians no matter where they live, how they vote or how much money they make. The idea of reducing income inequality and raising taxes to protect our way of life enjoys popular support across the country. For Canadians the problem of income inequality is not ideological. It is a matter of deep Canadian values, the sense of fairness and equality that inform our very pragmatic approach to nation building. Throughout our history, Canadians have proven that we 9 10 Canadians think reducing the income gap 10
11 are willing to make a few sacrifices to preserve what we love about Canada, but we also expect everyone to pitch in and do their part. Even Canada s wealthy agree. Now, it s time for Canada s political leaders to catch up with public sentiment. For our part, the Broadbent Institute will tirelessly press for progressive change under its Equality Project, because it s not only a reflection of what Canadians want for their country, it s an essential way to preserve the Canada we love. should be a priority for the government 11
12 THIS MOVEMENT IS ABOUT YOU Help the Broadbent Institute lead progressives to victory. We need committed social democrats like you to get engaged and spread the word. Here are the top 3 ways you can connect with the Broadbent Institute: 1. Sign up for our updates to be the first to hear about Broadbent Institute activities and announcements. 2. Like the Broadbent Institute on Facebo and use that page to discuss our work, share ideas, and inspire others to get involved. 3. Follow the Broadbent Institute on Twitter, converse with us there, tell your followers to do the same, and RT Stay connected with the Broadbent Institute info@broadbentinstitute.ca broadbentinstitute.ca
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