Tuesday, June 13, 2006

The Fiscal Balance

Yes, that's right, I said balance. The word imbalance that the media and politicians use recognizes that something's out-of-whack. I mean, they call it equalization don't they? It's a complicated formula to try and make all the provinces equal. Don't you find it amazing that while the premiers cry about the fiscal imbalance, none of them are pointing out the democratic imbalance that the Senate has. It's ridiculous.

Simply put, the federal budget was "balanced" about 10 years ago, and in some provinces. Some municipalities are also balanced, but continue to raise property taxes, fines, and fees to pay for it.

So if those levels are balanced, where's this imbalance?

What politicians, media, and the elite seem to forget is that the REAL fiscal imbalance is with Canadians themselves. You know, the ones who vote in the politicians. Yes, you. Okay, what do I mean?

For the amount of tax dollars we send to government, the municipal services are the most direct ones we benefit from.

Well, not to worry, the federal government will give the cities part of the gax tax revenue.


Why is it the level of government that provides the least amount of direct services gets to tax you the most?

So here me out...

What if the federal government taxed you much less than they do (bet you wouldn't notice a change in service!), the provincial government a little bit less, but your municipal government got to tax more?

You see, by the time money is transferred to a province, which in turn transfers some of the money to the cities, what's left? Not much, so the cities then have to raise taxes to make up for the shortfall to build roads and infrastructure, hire more police, etc.

I'm thinking that's probably how it used to be. But you know socialism, it tries to include everybody on a large scale, even those that don't want any part of it, all in the name of balance.

No comments: