Municipalities Playing Games With Total Tax Take
By Ben Meisner
Prince George Mayor Dan Rogers at last week’s Council meeting made the comment that the share of the taxes collected in Canada that go to municipalities has dropped over the past two decades to about 9% of the total taxes collected.
Now if you were to take the comments for face value, you would quickly side with the Mayor in his search for some new money from the Feds and the Province. You would quickly side with his thoughts until you examine the facts.
The largest single increase in Taxes in Canada is in health care. The province will spend about 36% of the total budget in 2010 up from 31%. Health care with the federal government is eating up the lion’s share of the 240 odd billion that was collected in taxes in 2008. With the feds , that money is used not only for health care , but also to provide an ever increasing demand on Old Age Security, Child benefits , EI , and other social programs of a like manner.
We also in this country face the problem that we have borrowed our way into a position where in the case of the Federal government, 15 cents of every dollar goes to pay debt, and while the City of Prince George seems to be able to deflect the issue, theCity also carries debt.
The point is that the single largest increase in government spending is coming about from health care and an ever increasing aging population.
Trying to make a case for more money for a city based on a percentage of the total take of taxes is like comparing the tax base of Vancouver to PG.
Municipalities, including Prince George have over the past few decades had an ever increasing desire to provide more and more facilities under the guise that it is what the public wants. Well the public also understands that in order to have these projects, someone must pay and the only people standing in line are the taxpayers of the local municipalities.
The phrase "back to the basics" just doesn’t seem to resonate with the politicians of the day who find it easier to say yes than no, and that creates a major hurdle that cannot be blamed on the Federal and Provincial governments.
I’m Meisner and that’s one man’s opinion.
Previous Story - Next Story
Return to Home