Comment 61611

By A Smith (anonymous) | Posted March 27, 2011 at 00:57:23 in reply to Comment 61610

Actually, from 2005-10, Sweden's economy only grew 20% (in US dollars), while Canada's grew 37.9%. High tax Denmark grew only 18.2%, while low tax Switzerland grew 40.3%. So, no, I wouldn't say that taxes, or tax rates don't matter.

As for cash benefits, like E.I, welfare and pensions, as long as they aren't too lavish, but allow people to have all the necessities of life (rent, food, clothes), are probably very good for the economy.

I do find it interesting, however, that two of the cities most often referred to by RTH'ers as being models Hamilton should follow, Portland and Boston, both have property tax caps.

In contrast, cities like Detroit and Buffalo, whose economic fortunes are declining, have high property tax rates.

An interesting case is NYC. They have low tax rates, similar to Toronto. So instead, the city borrows the money to pay for their extensive city government. In this way, the people aren't punished with high taxes, just because the city politicians like to spend.

In Hamilton, our leaders have decided to do the opposite. They feel it's better to tax the people when they overspend, rather than add debt onto their own balance sheet. The result is that not very many people want to live here.

For example...

Hamilton had $7,760, per person, in net ASSETS on their balance sheet, as of 2009.

NYC had $12,908 in net DEBT, per person, on their balance sheet as of 2010.

Yet even though we have far less debt than NYC, Hamilton still has high tax rates. Why is this?

An easy work around would be to sell off some city assets, use the money to cut tax rates and then if they want to, borrow money to build new assets.

In this way, their decades long overspending and fiscal mismanagement will be taken off the current taxpayer and put where it belongs, on the city government balance sheet.

Then, with lower taxes, people will have more money to spend at local businesses. The result will be a better economy and a happier populace.

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