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Thursday, July 28, 2005

Just wondering

Over at the Canadian Taxpayers Federation blog, Tanis Fiss notes that Winnipeg city council will vote on whether to "completely privatize garbage collection," a move that could save the city $2 million a year. Fiss comments, "Let's hope they reduce taxes accordingly." I share Fiss' hope but I think this is unlikely to occur. Does anyone know of an example of a city reducing the cost of a specific program and cutting taxes proportionately to the savings. My guess is that more often than not city council (or whatever level of government) uses the money elsewhere, that reducing costs through privitization is meant to defer cuts to social spending.

Posted by Paul Tuns on July 28, 2005 in Municipal Politics | Permalink


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Frankly I can't remember the last time any municipality cut taxes. Period. Anywhere.

Posted by: The Cyber Menace | 2005-07-28 11:52:50 PM

I think many municipalities are facing a real crisis and The Tax Revolt, or rather the ultimate resistance to taxes, will come at the municipal (i.e. property tax) level. My community has, for the first time in my memory, started closing libraries and cutting bus routes - and has a staff recommendation for the coming year to raise taxes by quite a bit. Something has to give, and maybe in the broader scope it will happen at city halls rather than at Parliament Hill.

I read a blogger who lives in a poor D.C. suburb whot tells me basic services like electricity, garbage collection, etc. are available only for a flat monthly fee. If you don't pay; you don't get it. Obviously this approach has it's problems but if our overall tax bill ever gets unmanageable - and it is trending that way right now - we need to look at how other jurisdictions around the world deal with these problems. Do you think the GTA tax base can afford twice a week free garbage pickup like North York used to do? What about the $34 billion Ontario taxpayers may have to pay over the next 15 years for clean water? Where the %@%##% is the money going to come from?

I just took a look at the public spending as a percentage of GDP chart over at OECD.org and it turns out our new enemies The Danes have the second highest level of public spending at a punishing 56%. When you purchase an automobile there the tax is 200-300%. Not my vision of Canada, but that's what's gonna happen if we don't stem the tide of statism.

Posted by: Anonalogue | 2005-07-29 5:05:48 PM

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