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By A Smith (anonymous) | Posted March 22, 2011 at 23:45:14 in reply to Comment 61378
>> decreasing efficiency and convenience for drivers trying to reach micro destinations such as local shops and businesses.
It's quite simple what ails the downtown area (and Hamilton in general), not enough private sector activity. What the downtown does have is lots of government transit, government jobs, social housing and high taxes.
Detroit is a great example of what happens when taxes get to high, everybody leaves and buildings sit vacant. In contrast, California has state wide low property tax rates and is almost void of areas with more than a few vacant buildings.
When we look at our own history, we learn that Hamilton's great economic base was built when taxes were much lower than today. Even in 1961, when Hamilton still had a good economy, total government income in Canada was only 27.9% of GDP.
In 2009, total government income had climbed to 41.5% of GDP and Hamilton's economy has been taken over by health care and education, both government monopolies.
In fact, from 2005-2009, taxes in Hamilton went up by an average of 4.1% a year. In that same period of time, Ontario wages/salaries/supplementary income only went up by 2.8%. When taxes are going up faster than wages, how are businesses going to thrive?
Hamilton revenue per capita in 2009 was $2,864. In 2006, the median household income was $55,312. That works out to 5.18% of income. In Burlington, revenue per person (incl. Halton region) was $3,064, while household income was $74.969, or 4.08% of income. So as a percent of the private economy, the City of Hamilton's income (from taxpayers) is 27% higher than the faster growing and more prosperous Burlington.
Facts also tell us that the richest province in Canada, Alberta, gives only 14% of GDP to the government, while the poorest province in Canada, PEI, gives 30.4% of GDP to the government.
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