Experts credit government policies, such as the introduction of the Canada Child Benefit in 2016, for the change in key trends. Photo Credit: Nathan Denette, the Canadian Press

Society Canada8. April 2021

Numbers Don’t Lie: Poverty and Income Inequality Are Going Down

According to Statistics Canada, the country is pursuing its fight against poverty and income inequality thanks to progressive government policies and should meet its goal of reducing poverty by 50% by 2030.

Mikal Skuterud, a professor in the economics department at the University of Waterloo in Ontario, says that “in a progressive society, we should be caring about ensuring that to some extent there’s some equal opportunity at birth, and you don’t have huge advantages and disadvantages in childhood that have long-term implications.”

In 2016, the country introduced the Canada Child Benefit that increases tax-free payments for citizens with lower income raising children. As of 2020, a maximum of $6,765 was given per child under the age of 6, and $5,708 for older children. Also, top earners saw their tax rate go from 29% to 33%. “For the inequality measures, how much you tax income at the top end matters a lot,” explains Skuterud. Canada has vowed to reduce poverty from 2015 levels by 50% by 2030, and according to the number regarding child poverty – there were 1.1 million children living below the poverty line in 2015, and 680,000 in 2019 – the country is on its way to respect that goal.

The Tyee

:::::: Related Articles

Back to top button