Canada's wealthiest shape the nation, says report

Don’t hate the one per cent.

While much has been made of the growing gap between rich and poor, a new report says the contributions of Canada’s wealthiest families shouldn’t be ignored.

The study by Toronto-based consultant group Creaghan McConnell Group (which, not incidentally, does estate planning for family businesses) says companies controlled by Canada’s 500 richest families account for $313 billion in revenue in Canada.

Firms held by business families contributed $6 billion in federal corporate taxes, about 20 per cent of the total in 2012-2013, it says.

“In recent years, wealth disparity has become a prominent topic in popular media. Conversely, the economic and cultural contributions of business leaders are commonly overlooked,” says the report.

“Abroad, much fanfare was paid to the Occupy Wall Street movement and associated protests decrying the wealthiest ‘one percent.’

“We believe the other side of the story needed to be told.”

In 2010, the top one per cent paid over 20 per cent of all federal and provincial income tax collected, and the top 10 per cent paid almost 55 per cent of all taxes, the report says. The bottom 50 per cent of earners contributed four per cent, it points out.

Names like Irving, Weston, Pattison, Rogers, McCain, Bronfman and Bombardier have shaped the nation, it says.

Family firms account for nearly 15 per cent of private sector employment, or nearly 1.6 million jobs, it says, based on publicly available databases, Statistics Canada and Industry Canada.

They contribute to charity and rank consistently among the most corporate citizens in the country when it comes to environmental performance, innovation and safety.

Canadian business families create revenue, pay taxes and generate employment that puts people to work, say the report.

In 2012, the top one per cent of earners took home over 10 per cent of all income earned, though that share has been in decline for nearly a decade, the report says.

“Most had modest beginnings. They started companies in basements and small towns, in media, manufacturing, the service sector and transportation,” it says.

“George Weston started a bread delivery route. John Molson founded a brewery. Ted Rogers created a radio station. Roy Thomson bought a newspaper. John Sobey opened a grocery store. Today, all of these companies have become giants in their fields.”

Ten of the 25 largest Canadian companies by employees are family-controlled businesses.