This seems like the week for stats. The latest Statistics Canada release is the number of taxfilers reporting investment income and the amount of investment income for 2004. This is reported income from investments like mutual funds, dividends, etc.
You may or may not be surprised to hear that in addition to having the second lowest percentage of folks reporting investment income, we have the second lowest level of investment income per capita among the 10 provinces with only Newfoundland faring worse.
In fact, New Brunswick generates 41% less investment income per capita than our friends in Nova Scotia (yes, that’s right, Nova Scotia – if you’re curious about Alberta try 65% less).
Now, you know what I am going to say. Sorry to repeat myself. Sorry to Al Hogan for reporting another bone fide statistic that he won’t publish.
But the truth is this. Low investment income means less financial security (yes compared to our friends in NS and PEI) and it means less taxes for government.
We need to generate more wealth which will lead to higher investment income which will lead to more taxes paid.
PS -What’s up in Nova Scotia? Did the provinces Great Aunt Nellie just pass away in Ontario and leave her billions to Nova Scotia? Investment income in that province is up 34% since 1999 – faster growth than any other province in Canada – except, of course, the cowboy hat province (up 46%).
Oh, by the way, you want my back of the matchbook solution for this problem? Real wealth is generated by entrepreneurs so we need to attract a number of large multinational firms to New Brunswick. They invest billions. Hire thousands. Entrepreneurs in construction, retail, services and subcontracted manufacturing will spring up to service the economic activity generated by the multinationals creating an overheating economy which will lead to suboptimal competitive markets and create a number of new millionaires and that will raise the level of aggregate investment income closer to the Nova Scotia numbers.