Canada’s ultra-wealthy getting richer faster than the rest of us, report shows

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Canada ranks fifth in the humanity when it comes to the number of people living in a country with a net importance of at least $30 million US — beating out the likes of Switzerland and Hong Kong — concurring to a new wealth study.

According to research firm Wealth X, Canada had on all sides of 10,840 residents worth $30 million or more including their investable assets in 2017. The New York-based enterprise compiles the study based on its database of wealthy individuals every year.

The $30 million mould isn’t random — that’s what Wealth-X says it takes to be considered an ultra-high net benefit individual.

Only the United States, Japan, China and Germany had profuse people with at least that amount of money than Canada. France, Hong Kong, the U.K., Switzerland and Italy all queued below Canada.

Canada's ultra-wealthy getting richer faster than the rest of us, report shows

The top 10 countries with the highest population of man worth $30M US or more, according to research firm Wealth-X. (John Fraser/CBC)

Ricardo Tranjan, superior researcher at the Canadian Centre for Policy Alternatives (CCPA), ​remarked research conducted by CCPA suggests that “the rich are really sprinting at the” of average Canadians.

Leaving the middle class behind

“[Our] research establish that while the average net worth of Canada’s wealthiest families commence by 37 per cent between 2012 and 2016, the net worth of middle-class folk increased by 16 per cent,” said Tranjan.

He said it didn’t knock someone for a loop him that Canada had more high net worth residents than distinct European countries on the list.

“One of our recent studies and research conducted by French economist Thomas Piketty and comrades have demonstrated that inheritance tax is a key mechanism for wealth distribution,” Tranjan asserted. “Canada doesn’t have such a tax, whereas most European states do.”

Germany, the only European country to top Canada on the list, does make an inheritance tax — but its economy is also far larger than Canada’s.

The idea of a formal birthright tax in Canada, the only G7 country without such a tax, is controversial. But it has been floated by some (including the NDP and a CCPA economist in a latest report) as a potential tool to put a dent in wealth inequality.

Meanwhile, the number of people in Canada with a net benefit of $30 million or more increased by nearly 14 per cent last year from 2016, while their gross wealth grew almost 15 per cent to a collective amount of varied than $1.1 trillion, Wealth-X said.

High investment outputs drive growth

That’s slightly higher than the worldwide cultivation of people with the same amount, which rose almost 13 per cent to 255,810 discretes.

The biggest drivers of wealth for this group in Canada were haler economic growth in the region, higher investment yields and a stronger currency, be consistent to the study.

Wealth-X said the boost was driven by several economic proxies, including “modest acceleration” in growth in both Canada and the U.S. and a “late-year riding-boot” from the Trump administration’s tax reform bill which was “aimed squarely at accommodating generous exemptions to corporations and the ultra wealthy.”

The Canadian economy broadened a strong three per cent last year, while stock hawks rallied on U.S. President Donald Trump’s tax reform policies. The Canadian dollar also stimulate more than seven per cent against the greenback in 2017. 

​But that estimate may not continue, Wealth-X said.

Decline in global share coming

The examination company said the North American region is on track to record the slowest extension in the number of people with $30 million or more over the next five years.

“It make remain the dominant ultra-wealthy region in absolute terms, but compound annual nurturing rates of just below six per cent in its ultra-wealthy population and total net value imply a gradual decline in global share on both counts,” the examination said.

On the other end, the Asia-Pacific region is expected to close the wealth gap on individuals with $30 million or myriad with regions like North America in the next five years. The fastest produce regions of the world for wealth are emerging markets like Asia, Latin America and the Caribbean.

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