Cracks Beginning To Show
In Ability To Keep Paying Tax Increases
The recent effort by the city of Nanaimo to attract a new hotel to downtown Nanaimo by offering tax incentives is yet another example of how some tax sectors have paid all they can afford to pay. The move to reduce industrial tax rates over the coming years is yet another sign of the negative impacts of excessive taxation that we have become reliant on in past decades.
Unless city councilors wake up, the same result will happen in the residential sector if continually taxing and spending is not brought into line, we are heading for an over taxation disaster in Nanaimo. We are headed for another 16% (at least) residential tax increase over the next four years, 20% increase in water rates in the same time period and who knows what other 'surprises' are lurking at city hall, waiting to be sprung on the already over stretched taxpayer.
Municipalities have heard loud and clear from business and industry, that they are killing the goose that lays the golden egg with over taxation and municipalities are being FORCED to respond, or risk driving business out of town altogether. With the reality that business and industrial taxes must reduce, local government who are as dependent on taxing and spending as the drug addict is dependent on their next fix, have only one other source for their 'fix'. That is the unorganized, nearly naked goose who think their elected officials are looking out for them.
The truth is, councilors just can't wrap their heads around the concept that this gravy train is nearly off the rails and the days of living in la la land where you simply raise more taxes to fund your latest boondoggle are pretty much over.
All senior levels of government are wrestling with getting a grip on out of control spending, but local government on the advice of city hall management are still labouring under the illusion that the residential tax purse has no bottom.