Did Tax Flattening Affect RRSP Contributions?

In 1988, marginal personal income tax rates changed in Canada, for some individuals by reasonably substantial amounts. This note examines a large sample of tax-filer data and finds little convincing evidence of any effect on contributions to Registered Retirement Saving Plans (RRSPs).income tax rate; retirement saving plan

The Top Shares of Older Earners in Canada

Within the 65+ age group, the percentage of labour market income received by the top 1% of earners has increased from about 30% in 1982 to more than 60% in 2002. The trend is smooth, is roughly uniform across provinces and does not appear to have been accelerated by top marginal tax rate reductions in 1988. Hence there is little evidence from this time series that further marginal tax rate reductions would have an important permanent effect on aggregate labour supply for this age group. Moreover, it is unlikely that this period could provide evidence regarding aggregate labour supply effects for this group with respect to reductions in Old Age Security or Guaranteed Income Supplement clawbacks, because the top 1% of earners are above the income range served by these programs.Income distribution of seniors, employment income of seniors

Which Canadian Seniors Are Below the Low-Income Measure?

About 6% of seniors in Canada have family incomes below the Low-Income Measure. (The Low-Income Measure is 50% of the median family income, adjusted for family size, and is a commonly used, if arbitrary, operational definition of relative poverty.) This is a low rate by international standards, in sharp contrast to the high rate in Canada about 35 years ago. It is lower than the comparable rates for the general Canadian population or for families with children and more Canadians leave below-LIM status during their retirement years than enter it. Canadian income tax data show that the remaining 6% are disproportionately immigrant, female, currently unmarried and supporting dependent children (possibly grandchildren). Age does not appear to be of great importance.relative poverty, Canadian income distribution, pension adequacy

Did Tax Flattening Affect RRSP Contributions?

In 1988, marginal personal income tax rates changed in Canada, for some individuals by reasonably substantial amounts. This note examines a large sample of tax-filer data and finds little convincing evidence of any effect on contributions to Registered Retirement Saving Plans (RRSPs).income tax rate; retirement saving plan

The Top Shares of Older Earners in Canada

Within the 65+ age group, the percentage of labour market income received by the top 1% of earners has increased from about 30% in 1982 to more than 60% in 2002. The trend is smooth, is roughly uniform across provinces and does not appear to have been accelerated by top marginal tax rate reductions in 1988. Hence there is little evidence from this time series that further marginal tax rate reductions would have an important permanent effect on aggregate labour supply for this age group. Moreover, it is unlikely that this period could provide evidence regarding aggregate labour supply effects for this group with respect to reductions in Old Age Security or Guaranteed Income Supplement clawbacks, because the top 1% of earners are above the income range served by these programs.Income distribution of seniors, employment income of seniors

Did Tax Flattening Affect RRSP Contributions?

In 1988, marginal personal income tax rates changed in Canada, for some individuals by reasonably substantial amounts. This note examines a large sample of tax-filer data and finds little convincing evidence of any effect on contributions to Registered Retirement Saving Plans (RRSPs).

2 1/2 Proposals to Save Social Security

This is a review article of three books that deal with the problems facing the U.S. Social Security system. One deals with the OASDI (Old-Age, Survivors and Disability Insurance) financial shortfall and proposes an alternative plan with both a tier one benefit and a tier two provision based on personal saving accounts. A second considers the social insurance system more comprehensively, arguing for a grand reform which would include new programs, particularly in the areas of child care and housing. A third largely confines itself to arguing against those who wish to change the OASDI plan because of the financial projections, although it also argues for a more comprehensive health care insurance system. The review concludes that key differences expressed in the books, particularly between the first and third, rest on different value judgments regarding intergenerational equity and the role of government.social security; intergenerational equity; role of government

The Evolution of High Incomes in Canada, 1920-2000

This paper presents new homogeneous series on top shares of income from 1920 to 2000 in Canada using personal income tax return data. Top income shares display a U-shaped pattern over the century, with a precipitous drop during World War II, followed by a slower decline until 1970. 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. 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. Further evidence suggests that the upward trend in Canada derives from the United States, perhaps because many Canadians have an emigration option. A data appendix for this paper is available.

The Evolution of High Incomes in Canada, 1920-2000

This paper presents new homogeneous series on top shares of income from 1920 to 2000 in Canada using personal income tax return data. Top income shares display a U-shaped pattern over the century, with a precipitous drop during World War II, followed by a slower decline until 1970. 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. 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. Further evidence suggests that the upward trend in Canada derives from the United States, perhaps because many Canadians have an emigration option.income share

Allocating Awards Across Noncomparable Categories

Suppose an agency awards a …xed number of prizes to applicants in different categories such that the applicant-to-winner ratio is constant by category. It is demonstrated in a simple theoretical model that the number of awards in a category will typically be positively related to the degree of applicant uncertainty. The theoretical …ndings are related to awards data from the Social Sciences and Humanities Research Council of Canada doctoral fellowship competition.