What is middle-class income these days?

On July 20th, CCPA- BC economist Iglika Ivanova posted her analysis of Statistics Canada data showing a breakdown of incomes in Canada and B.C on the BC blog, Policy Note

 We were inspired to examine how the distribution of incomes looks in Manitoba using the same data from Statistics Canada Cansim Table 202-0401.   The following table includes all income before-tax (including all government transfers, such as EI, welfare, GST credits) for economic families of 2 and more persons.

Income by Quintile – Canada and Manitoba

Canada

Income Range

Percent of Families

Description

Quintile 1

Up to $40,000

21.1%

Poor and near poor

Quintile 2

$40,000 – $60, 000

17.9%

Lower-middle or modest income

Quintile 3

$60,000-$85,000

20.4%

Middle income

Quintile 4

$85,000 – $125,000

21.4%

Upper-middle income

Quintile 5

Over $125,000

19.2%

High income

Manitoba




Quintile 1

Up to $40,000

19.8%

Poor and near poor

Quintile 2

$40,000 – $60, 000

17.9%

Lower-middle or modest income

Quintile 3

$60,000-$85,000

23.7%

Middle income

Quintile 4

$85,000 – $125,000

21.5%

Upper-middle income

Quintile 5

Over $125,000

17%

High income


What does this tell us about Manitobans?

Fully 19.8 percent of Manitoba families of two or more persons are earning less than $40,000, and depending on their family size, are living near the poverty line.   37.7 percent of families are earning less than what would be considered a middle-income.  Only 23.7 percent of Manitobans are in fact middle-income earners with the remaining 38.5% of earners in the upper-middle to high-income quintiles.  Bottom line? the middle class is not the norm.

If you are a family of two or more with less than $60,000 income before-tax, you are earning less than middle-income.  As described by Ivanova, many of the existing and proposed federal government tax cuts benefit those with incomes exceeding $70,000.  Add to this the Conservative government’s disinterest in policy measures that will help low and middle income families, such as childcare and adequate pensions, and we will likely see a further increase in disparity between low and high income earners.

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Filed under inequality, poverty, Prosperity

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