Comment 29044

By A Smith (anonymous) | Posted February 24, 2009 at 19:17:00

Z Jones, I don't concede anything. I am simply trying to be gracious and not be an as$@#@% like yourself. JonC has already provided numbers that confirm my argument that lower TAX RATES lead to higher revenue per property (Toronto, Burlington, Oakville), so what else is there to discuss. JonC originally attacked the idea of lowering tax rates under the false assumption that it would decrease overall revenue to the city, but as his own numbers showed, lower rates actually increase revenue per property and thus overall revenue to the government.

Now that his own numbers have contradicted his original assertion, namely that lower tax rates decrease revenue, he is falling back on the old, "correlation does not equal causation" argument, which is akin to saying unless you have 100% proof, then your argument is irrelevant. At this point, it's obvious he is arguing simply to defend a strongly held belief, whether or not it actually is correct, so that's why I said what I did, not because I think I am wrong, but because I think he knows I am right.

His new argument >> It's much more accurate that as the property values rise, the tax rate can come down as less tax is needed to satisfy the existing budget

In 2001, avg dwelling prices in Hamilton were $166,783 and the residential tax rate was 1.75%. In 2006, prices averaged $252,248 and rates were 1.54%. Therefore, in 2001 revenue per property was $2,918. In 2006, it was $3,885. Therefore, in five years taxes paid to the city went up by 33.1%, or 5.9% per year. Considering that inflation was likely 2% per year, that meant the city increased real taxes (adjusted for inflation) by close to 4% a year. So much for the city watching how they spend our taxes.

If the city had simply increased spending at the rate of inflation (2% a year max) from 2001 to 2006, they would have needed $3,221 per property in 2006. This also means that tax rates would have fallen to 1.28%, much closer to our richer neighbours.

Therefore, unless you can put forward good reasons why government has to spend money faster than the cost of living, there is no excuse for the city not cutting our tax rates.

Permalink | Context

Events Calendar

There are no upcoming events right now.
Why not post one?

Recent Articles

Article Archives

Blog Archives

Site Tools

Feeds