Trying to tax income inequality away would be ineffective and harmful to economy, studies suggest

National Post | News

Income inequality may be increasing in Canada, but the picture is more complex than protesters, partisans or pundits often paint it, according to three new studies released by the University of Calgary School of Public Policy on Thursday.

Further, the reports suggest inequality may not be such a bad thing, and that the government, hamstrung by growing spending obligations, may not be able to do much about a concentration of wealth at the top of the social strata anyway. The papers suggest that taxing inequality away would likely be both ineffective and harmful to the economy as a whole.

Using data from the census, associate professor Kevin Milligan with the Vancouver School of Economics at the University of British Columbia, said he confirmed trends found in previous studies.

“It points to an increase in income inequality, but it also points to improvement for low-income people at the bottom of the…

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