Thursday, January 04, 2007

The Distribution of Wealth

One argument I hear very often about the bad economical health of Quebec is that the people having a revenue over 100 000$/years pays more then 50% of the taxes while being far from 50% of the population (close to 8% if I remember correctly but don't quote me on that it's probably a wrong figure). Now on first look that seem dangerously wrong, if around 10% of the people pay more then 50% of the taxes there is something wrong and our economy will go badly. But there is something we must consider before going unto the CHANGE EVERYTHING mode, just what percentage of the total wealth of Quebec does those people earn? Cause if they earn more then 50% of the wealth it not illogical that they should pay 50% of the taxes no?

Now, I do not believe that it is the case in Quebec, however just because it might not be the case does not mean that on it own it is a good argument to change our economical model. It would be a good idea to look at exactly how wealth is distributated, you do not want to overtax the poor, but you do not want to overtax the rich either. It is simply fairness; no one should be paying more then his share.

No comments: