For immediate release: March 11, 2025
OTTAWA—Canadians are facing affordability pressure that has been four decades in the making, and a new report by Canadians for Tax Fairness (C4FT) shows why. Canada’s affordability divide shows that since 1982, the cost of living has outpaced pre-tax income for the bottom half of earners. During that same period, the income of the top 0.01% grew six times faster than the bottom 50%.
“Canada's economy has grown, but that growth left millions behind," said Silas Xuereb, the report’s author and policy analyst for C4TF. "This crisis isn't just about inflation or the pandemic — it's the result of 40 years of policies that have funnelled wealth to the top while hollowing out the middle class and leaving the poorest Canadians struggling to survive."
The report’s findings show that had economic growth over the past four decades been equally shared, 15 million Canadians would have an extra $6,450 in their pockets every year.
Instead, decades of tax cuts for the wealthiest, matched with rising costs for average-income earners, have created a stark affordability divide in Canada.
"We found that costs of essentials like food and housing have been rising faster than overall inflation for a couple of decades," said Xuereb. "About a third of average household income goes to shelter now, and the portion going to food is at its highest level since 2001."
“The overall tax burden has been shifted onto working-class Canadians,” stated Katrina Miller, Executive Director of C4TF. “In 1988, both wealthy and average-income Canadians experienced about the same tax burden. Now, the top 1% enjoy a tax burden that is about half of what the average worker faces. Rebalancing that burden can help make life affordable for everyone.”
The report calls for bold public investments that improve affordability and inclusive economic growth, funded through taxing extreme individual and corporate wealth.
"To truly make life affordable for all Canadians, we need to break with the failed policies of the past and rebuild a fairer economy," added Miller. "That means investing in people and communities — and making the wealthiest pay their fair share."
Canadians for Tax Fairness is a non-profit, non-partisan organization that advocates for fair and progressive tax policies aimed at building a strong and sustainable economy, reducing inequalities, and funding quality public services.
Read the full report here.
Media contact:
Erica Shiner
Communications Coordinator
Canadians for Tax Fairness
erica.shiner@taxfairness.ca
