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With reports that the federal government will announce a greater surplus than expected the National Union urges the development and use of a Fairness Test to ensure that future budgets reduce, not increase, income inequality.
Ottawa (6 Jan. 2014) - The National President of the 340,000 member National Union of Public and General Employees (NUPGE), James Clancy, has written the Prime Minister to advocate for the development and use of a Fairness Test as a means to assess the impact of national tax and spending policies on income inequality.
The letter to Stephen Harper comes as the Finance Minister hints that the federal surplus may be greater than expected.
Income Inequality one of the major social policy issues facing Canada
Clancy tells the Prime Minister that "rising income inequality has quickly become one of the major social policy issues in Canada. The importance of policies to reduce income inequality is recognized not only by academics and policy experts but also by the media and the general public. The recent series of articles on income inequality in the Globe and Mail is a reflection of the growing consensus that policies are needed that will narrow the growing gap in wealth among Canadians.
"There is a substantial body of research that supports the observations we heard from Atlantic Canadians. High levels of income inequality makes our economy unstable, diminishes the quality of life of all Canadians, brings a wide range of societal problems, and undermines our democracy. Furthermore, high levels of income inequality raises ethical and moral questions about the kind of society we want for ourselves and future generations."
Canadians feeling the effects of rising Income Inequality
Clancy says that the growing need for action "became all the more clear to the National Union during our recent bus tour of the Atlantic Provinces. Our Fairness Express stopped in 32 communities and spoke with thousands of Canadians about income inequality and the impact it was having on their communities. What we heard during those conversations was both sobering and inspiring.
"We met people from almost all walks of life. Atlantic Canadians see themselves struggling to get by on a daily basis while others become increasingly wealthy. While the well-to-do of their provinces reap all the benefits they are left having to stretch farther each week, each day, to cover the rising costs of child-care, housing, pharmaceuticals, or education.
"These Canadians do not feel better off as a result of tax cuts. They are acutely aware of the negative social, health and economic effects of cuts to public services."
Need for action - Fairness Test would be good start
The National Union argues that addressing income inequality must be a top priority for the Harper government. One positive step forward would be to ensure that future federal budgets are tasked with implementing measures that will reduce income inequality.
"Your government should develop and implement a Fairness Test to assess the distributional impact of key tax and spending policies in budgets and determine whether they will reduce income inequality or make the problem worse" explained Clancy.
"The test, by embedding the principle of fairness into public policy decisions, would help ensure that the most vulnerable Canadians are not further hurt by these policies. The Fairness Test could be developed and applied by the Department of Finance and published in the budget as part of the fiscal planning framework.
"Income inequality is not inevitable. It is the result of policy decisions made by governments. The federal budget is about more than just balancing the books. It provides an important opportunity to craft and implement public policies about the kind of country we want to build. Our vision, one that is shared by the vast majority of Canadians, is of a country that has a strong economy and social system that is just and fair."
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE