New Brunswick has 59% fewer people who earn $200,000 per year and 63% fewer people who earn $250,00 per year compared to Canada as a whole.
To put that into some kind of context, you would have to look far and wide to find any major social, demographic or economic indicator where New Brunswick had a 60% spread with the rest of Canada. Not literacy, education, poverty or health outcomes. Not median income or any other main economic indicator.
But when it comes to ‘high’ income earners we have a huge gap. And the gap is widening at least at the highest level. In the past five years the national growth rate of those earning $250,000 was 50% faster than New Brunswick.
Does this matter? Well, I think it does. By my estimate just getting to the national average for higher income earners would add some $200 million in provincial government tax revenues each year. And that is grossly understated because it doesn’t account for other sources of tax revenue that would be derived from the economic activity generated by those high income earners (I only looked at the direct taxes off the additional personal income). In other words it pushes the tax burden down the income pyramid.
Now let me be clear. If the price to get more higher income earners means less income for those lower in the income pyramid (i.e. creating more inequality) – that is not acceptable. But I am talking about generating relatively high incomes from creating new wealth from entrepreneurial activity, risk taking and hard work.
How do we do that? We need more ambitious entrepreneurs looking to build markets outside New Brunswick and we need world class companies willing to step outside their comfort zone and take risk.