The math is quite simple. Spending, by three levels of government, drives tax levels, and – as one comparison in the Lower Mainland demonstrates, drives economic outcomes as well. Taxes reduce growth, so hold onto your wallet. When taxes start to rise to pay for the current spending spree, we'll all be worse off.

Federally, out of control spending will leave each person in Canada with a debt of almost $17,000 for their portion of the federal debt by 2011.

In B.C., out of control spending will leave each person in B.C. with a debt of almost $11,600 for their portion of B.C.'s debt by 2011.

The trick the federal and provincial governments play, is by borrowing to pay for spending, they are able to delay the tax hikes. In 2011, the EI tax goes up and in B.C., the health and carbon taxes go up every year.

What happens when taxes go up?  Growth slows down, and we can see that happen when we compare two cities - Surrey and Vancouver.

Local governments cannot run operating deficits and therefore must raise in taxes what they spend each year. Different taxation regimes are driven by spending. Surrey spends $702 per person to deliver services to citizens. This is half that of what Vancouver spends, at $1,433. It seems unlikely local government services in Vancouver are twice as good as they are Surrey.

What is the result?

Unlike Vancouver, Surrey has done a good job of keeping business property taxes competitive. In fact, Surrey boasts one of the lowest business property tax burdens in the province. This burden drives economic outcomes and as a result, Surrey is growing faster than Vancouver in terms of population, the labour force, and even school enrollment.

So, the lesson here is clear. If a city can control its spending, it is reflected in a competitive tax regime that results in people moving there, setting up business there, sending their kids to school there and above all, paying taxes there.  Provinces and the federal government could learn a similar lesson.