Comment 39557

By More roads (anonymous) | Posted April 07, 2010 at 18:46:36

This data is from the 2006 Census and the latest annual reports of the respective cities...

These numbers show that as government spending increases, so do home values. Not only that, but home values tend to increase faster than spending...

Toronto non welfare spending/person = $2,940
Toronto average dwelling price = $413,574
Average dwelling price = 141 times the value of annual government spending/person

Burlington non welfare spending/person = $2,536
Burlington average dwelling price = $348,041
= 137

Hamilton non welfare spending/person = $1,998
Hamilton average dwelling price = $252,248
= 126

If government spending is wasteful, how do you explain the fact that Toronto's home price/(government spending per capita) is higher than both Burlington and Oakville? The numbers indicate to me that government spending adds more in economic value and asset appreciation than it costs in taxes.

As for taxes, if you assume that the average tax rate in Hamilton is 1.5%, that means that the median house pays $252k * 0.015 = $3,780

Burlington = 348k * 0.108 = $3,758
Toronto = 413K * .0854 = $3,527

Here you can see that Hamilton tops the list of taxes paid. However, because Hamilton has taken the road of living on the cheap, should we be surprised that businesses have moved to greener pastures? By not investing in the things that make cities livable, we have chased businesses and higher income residents away. The result is that poor people are now carry a heavier burden.

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