Friday, June 02, 2006

Federal funding to municipalities...

So I was reading this. Yet another call for more taxing powers for the big cities.

I am not overly thrilled with the idea of giving municiaplities the power to enact income or sales taxes.

However, I would like to offer this humble solution:

Let municipalities continue to charge GST for the goods and services they provide (many fees that municipalities charge have GST included) and then let them keep the money.

Currently municipalities don't have to pay GST anymore. Why not let them keep the GST they collect.

I don't know how much big cities collect in GST, but a back of the envelop calculation for our small town with $500,000 in parks and rec revenues, the GST would mean another 35,000 (30,000 after July 1st). In our municipality that would represent a 0.5% reduction in our total levy. And we are just a small town of 20,000.

If you think this is a good idea, forward it on to someone with some pull in the Harper government.


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