Comment 49205

By A Smith (anonymous) | Posted October 11, 2010 at 20:51:24

Jason >> I still see a day where Hamilton builds 50-75 storey towers downtown...If Mississuaga can do it, why can't we?

Mississauga Taxes per $1,000 dollars of new investment

Residential - $9.82
Multi-Residential - $15.59
Commercial - $23.84
Industrial - $27.49

Hamilton Taxes per $1,000 dollars of new investment

Residential - $15.38
Multi-Residential - $15.38
Commercial - $41.13
Industrial - $58.42

In order to break even after yearly taxes, residential buildings need to go up in value by at least 1.538% in Hamilton, but only 0.982% in Mississauga. In other words, Mississauga is a less risky and easier place to build equity than Hamilton. Knowing this, the only way to get our fair share of condo developments and other investments is to create a more competitive tax structure.

From 2005-2009, total wages/benefits to city employees jumped by $190M annually, from $466M to $656M, or 40.77%. During this same time frame, Hamilton's population went up by 1.34%, while total Ontario wages went up by 11.69%. If we assume that Hamilton's population grew around the provincial average, it would appear that city employee wage gains were almost 4x that of taxpayers.

What if the city had a policy of linking city employee compensation to those of the taxpayer? In this scenario, city wages would have gone from $466M to $520.5M, a savings to taxpayers in 2009 of $135M.

Residential taxes account for 77% of $843M in total taxes, or $649M. If we reduce this $649M by $135M extra employee wages, it gives us a tax bill of $514M. $514M/$649M = .792. The new tax rate for residential taxpayers would now be .792 * 1.538% = 1.218%, or a savings of $640 on a 200k home/condo.

How many taxpayers would like a tax cut of $640 per year? Well, you could have it tomorrow if city workers were treated just as you are, no better, no worse.

Is it wrong to expect the government to treat taxpayers with respect?

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