There are 86 residents in Canada who control the same amount of wealth as more than 12 million other Canadians, according to a Canadian Centre for Policy Alternatives (CCPA) report, Outrageous Fortune, released April 3.
And the gap is widening.
The "Wealthy 86" had a total net worth of $178 billion in 2012, which is more than 50% higher than the amount in 1999 ($118 billion).
To put this in perspective, these 86 individuals have so much money, they could buy a Canadian province.
"Canada's Wealthy 86 represent only 0.002% of the population but theyre so flush they could buy absolutely everything owned by every person in New Brunswick," said CPA senior economist David Macdonald.
"They could buy up all of New Brunswickers' cars, all of their houses, all of their undeveloped land, all of their stocks, bonds, pension funds and RRSPs, all of their jewelry, all of their furniture—everything—and still have billions to spare.
The study found that while the income gap in Canada is a huge concern, with the richest 20% of families taking home almost half of all income, the wealth gap is even more alarming.
The wealthiest 20% of Canadians control almost 70% of the country's wealth.
"The very wealthy got that way by creating or trading assets, usually companies or real estate," Macdonald said.
What can be done about this shocking discrepancy?
According to the report, a higher inclusion rate for capital gains as well as higher income taxes for those in the top income brackets are needed.
"When [the very wealthy] make money trading assets, those capital gains are taxed at only half the rate of what a working Canadian would pay in income taxes on the same amount," Macdonald said. "There are few direct taxes on wealth in Canada.
"A fairer inclusion rate for capital gains would help offset the flood of wealth that is accumulating in the pockets of Canada's wealthiest and ensure some of those benefits are returned to the majority of Canadians."
The study also found that only 10 of the 100 highest paid CEOs in the country are included in the Wealthy 86, and of those, they either founded or are related to someone who founded the companies they are heading.
