On 13 June 2012, Private Members’ Business M-315 passed in the House of Commons by a vote of 161 to 138. The motion instructed the House of Commons Standing Committee on Finance to undertake a study on income inequality in Canada.
(i) a review of Canada’s federal and provincial systems of personal income taxation and income supports, (ii) an examination of best practices that reduce income inequality and improve GDP per capita, (iii) the identification of any significant gaps in the federal system of taxation and income support that contribute to income inequality, as well as any significant disincentives to paid work in the formal economy that may exist as part of a “welfare trap,” (iv) recommendations on how best to improve the equality of opportunity and prosperity for all Canadians; and that the Committee report its findings to the House within one year of the adoption of this motion.
To that end, over the course of three hearings and in written submissions, the Committee received the views of academics, think tanks, associations, individuals and others about a range of issues related to income inequality in Canada.