Jacks on Tax

By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on October 22, 2025
Estimated reading time: 7 minutes

By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on October 22, 2025
Estimated reading time: 7 minutes

6 proposals to help low-income Canadians get smarter about money and close the growing wealth gap.

Statistics Canada’s midsummer report on Canadians’ disposable income showed an increase across all income quintiles in the first quarter of 2025, by a healthy average of 6% to 7% for the highest earners and 3.2% for the lowest. That was good news; the increases were above the inflation rate of 2.3% during that time.

But things changed in the second quarter as Canada’s economy weakened. This has put the spotlight on the weakness of Canadians’ income and savings in the face of change. It also provides an important opportunity for the November 4 federal budget to protect financial well-being in the months ahead.

The income gap, which is the difference in the share of disposable income between households in the top 40% and the bottom 40% of income distribution, is a common measure that makes the news. It was at a record high of 49% in the first quarter, with a slight reduction in Q2, and has been increasing every year since the pandemic.........

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