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Calgary aldermen make the case for a taxpayer protection law

Author: John Carpay 2005/04/25
An attitude of "we know best" struck Calgary this week, as the majority of aldermen voted to raise municipal taxes again. Monday's sudden vote erased the tiny provincial tax cut announced in the provincial budget two weeks ago. This five percent reduction to the provincial property tax rate would have saved Calgarians over $20 million per year. But not anymore, now that city council has increased municipal taxes by the same amount as the provincial tax cut.

The majority of politicians are firmly persuaded that they can spend other people's earnings with more care and greater wisdom than the people themselves. Has it occurred to them that Canadians already lose 49% of their earnings to support three levels of government Have they noticed that taxes are the largest item in a family's budget, costing more than what families pay each month for the mortgage or rent Have they thought about a family's desire to save for their children's education, or put money towards a nice holiday, or give more to charity, or pay off some personal debt Do they understand the economic benefits of allowing people to spend and invest more money in the local economy

"But we need that extra tax revenue to fix sidewalks," Calgarians were told.

Baloney. City council already takes in $1.7 billion tax dollars from Calgarians each year - over $1,700 for every man, woman and child in the city, or $6,800 for a family of four.

If city councilors can't put together a budget which includes adequate money for sidewalk repair, they are incompetent and should resign.

Rather than raising taxes, municipal politicians should get more value for the money they already receive from Joe Taxpayer. When was the last time that city council looked at contracting out more municipal services to save taxpayers money When was the last serious review of the size of City Hall bureaucracy Are municipal employees rewarded for finding savings and efficiencies, or is it in their best interest not to rock the boat What incentives can be introduced to reward city workers who find ways to save taxpayers money

Perhaps the worst aspect of this tax increase was the sneaky way in which it was rushed through, without any public input. But politicians who think they know best don't want to bother with annoying things like debate, accountability and democracy.

By rapidly sneaking through a tax increase, Calgary's aldermen have made a strong case for taxpayer protection laws. The idea is simple and effective: no new taxes and no tax increases without the consent, in a referendum, of those who pay the bills. Taxpayer protection legislation forces politicians to explain and justify a tax increase. Without a law of this kind, politicians can raise any tax at any time for any reason, as Calgary aldermen did this past Monday.

School boards can't raise property taxes without taxpayers' consent. But our federal, provincial and municipal politicians have the power to raise any tax at any time for any reason, without the approval of those who must pay the bills.

Premier Klein promised Albertans taxpayer protection legislation in 1997. He still hasn't delivered. But if he does keep his promise, he should put taxpayer protection into place both provincially and municipally.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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