More tax powers for City Hall? Let's follow three simple rules please

More tax powers for City Hall?
Let's follow three simple rules please

Ottawa - Thursday, April 25, 2002 - by: Walter Robinson, Federal Director, Canadian Taxpayers Federation

“The cites are in the 21st century the essential locus of economic growth, and the quality of life in those cities is an essential part of it … I think we have to have a national debate on the issue and that debate has to be as open and inclusive as possible.”

Paul Martin, April 22, 2002.

city-states
The premise that our national economic future is inextricably intertwined with that of our urban regions should be self-evident. In this century, city-states are where it’s at. But this Martin-esque pattern of calling for a national debate has become a little tiresome.

own
agenda
To start, this debate has been underway for the better part of four years. Moreover, Mr. Martin has called for national debates in the past, most notably in successive economic statements about the role of government in the post-deficit era. Yet this debate never transpired, instead Chretien and crew proceeded with their own agenda.

routinely
overtax
If the proverbial man from Mars came to Canada, he might rightly conclude that the role of the Canadian government is routinely present suspect budgets, overtax citizens by $10 billion annually, blow $4 billion on corporate welfare each year, blatantly ignore Parliament’s servants like the Auditor General and Information Commissioner and drop a cool $100 million on unneeded executive jets on the last day of the fiscal year.

insincere
Given this, the pundits may wish to ask if Mr. Martin is sincere or if his newfound love of cities is more the stuff of good political/leadership posturing?

an urban
nation
Back to the cities issue, the TD Bank report is well researched and direct in its conclusions: cities need a new deal and new revenue sources to meet their infrastructure needs. The recent census shows that over 60% of us live in Canada’s twenty-seven largest census metropolitan areas (CMAs), while well over 80% of us live in areas with a population of 10,000 or more. That we are an urban nation is beyond question.

5% of
taxes
run your
city
So to is the revenue dilemma with which local governments must contend. While the numbers may differ somewhat among the provinces, on average 65% of your total tax paid goes to Ottawa, the province collects another 30% and the last 5% finds its way to City Hall. This small amount primarily consists of property taxes. Property taxes are already too high for homeowners, they unfairly penalize commercial operations and the inequities that they foist upon owners of mutli-residential units are obscene.

under
provinces
Funding cities presents a bit of a constitutional problem. Cities are legal creatures of the provinces so any moves by Ottawa to intervene will be interpreted as another federal incursion by provincial governments.

equal?
However, the feds can make the case that the vibrancy of the economic union is dependent on thriving cities thus providing some wiggle room for action. This brings us to some principles to be followed as we move toward accepting cities as an equal – and not junior – order of government alongside the other two.

mayors
First, it is up to city mayors to foster the political climate to allow for federal-provincial cooperation (as opposed to constitutional and jurisdictional squabbling) in any solutions proposed.

tax
burden
limited
Second, any transfers of funds (ideally from Ottawa’s shameless pillaging of $5 billion annually at the gas pumps) for cities’ infrastructure projects must be revenue neutral. Ceding of tax room through a tax point transfer scheme is one idea to be considered, but the combined fed-prov-city tax burden cannot increase.

reduce
waste
Finally, city governments must get their own acts together in rooting out wasteful spending by setting funding priorities, embracing more public-private partnerships and yes, privatizing or contracting out non-core services. Just a few debating points to ponder …

Walter Robinson
Federal Director



More tax powers for City Hall? Let's follow three simple rules please

Ottawa - Thursday, April 25, 2002 - by: Walter Robinson, Federal Director, Canadian Taxpayers Federation
	`“The cites are in the 21st century the essential locus of economic growth, and the quality of life in those cities is an essential part of it … I think we have to have a national debate on the issue and that debate has to be as open and inclusive as possible.”` Paul Martin, April 22, 2002.

city-states	The premise that our national economic future is inextricably intertwined with that of our urban regions should be self-evident. In this century, city-states are where it’s at. But this Martin-esque pattern of calling for a national debate has become a little tiresome.

own agenda	To start, this debate has been underway for the better part of four years. Moreover, Mr. Martin has called for national debates in the past, most notably in successive economic statements about the role of government in the post-deficit era. Yet this debate never transpired, instead Chretien and crew proceeded with their own agenda.

routinely overtax	If the proverbial man from Mars came to Canada, he might rightly conclude that the role of the Canadian government is routinely present suspect budgets, overtax citizens by $10 billion annually, blow $4 billion on corporate welfare each year, blatantly ignore Parliament’s servants like the Auditor General and Information Commissioner and drop a cool $100 million on unneeded executive jets on the last day of the fiscal year.

insincere	Given this, the pundits may wish to ask if Mr. Martin is sincere or if his newfound love of cities is more the stuff of good political/leadership posturing?

an urban nation	Back to the cities issue, the TD Bank report is well researched and direct in its conclusions: cities need a new deal and new revenue sources to meet their infrastructure needs. The recent census shows that over 60% of us live in Canada’s twenty-seven largest census metropolitan areas (CMAs), while well over 80% of us live in areas with a population of 10,000 or more. That we are an urban nation is beyond question.

5% of taxes run your city	So to is the revenue dilemma with which local governments must contend. While the numbers may differ somewhat among the provinces, on average 65% of your total tax paid goes to Ottawa, the province collects another 30% and the last 5% finds its way to City Hall. This small amount primarily consists of property taxes. Property taxes are already too high for homeowners, they unfairly penalize commercial operations and the inequities that they foist upon owners of mutli-residential units are obscene.

under provinces	Funding cities presents a bit of a constitutional problem. Cities are legal creatures of the provinces so any moves by Ottawa to intervene will be interpreted as another federal incursion by provincial governments.

equal?	However, the feds can make the case that the vibrancy of the economic union is dependent on thriving cities thus providing some wiggle room for action. This brings us to some principles to be followed as we move toward accepting cities as an equal – and not junior – order of government alongside the other two.

mayors	First, it is up to city mayors to foster the political climate to allow for federal-provincial cooperation (as opposed to constitutional and jurisdictional squabbling) in any solutions proposed.

tax burden limited	Second, any transfers of funds (ideally from Ottawa’s shameless pillaging of $5 billion annually at the gas pumps) for cities’ infrastructure projects must be revenue neutral. Ceding of tax room through a tax point transfer scheme is one idea to be considered, but the combined fed-prov-city tax burden cannot increase.

reduce waste	Finally, city governments must get their own acts together in rooting out wasteful spending by setting funding priorities, embracing more public-private partnerships and yes, privatizing or contracting out non-core services. Just a few debating points to ponder …

	Walter Robinson Federal Director