It’s budget season in the city of Ottawa again. But if you haven’t been paying attention, you can be forgiven. With three levels of government, the numbers game can easily become overwhelming. A constant barrage of figures bombards the electorate with every throne speech, election campaign and budget process.
Most people probably think they have enough to worry about with their own personal finances. But a lot is at stake when governments decide how they will dole out their resources. And it really comes down to what has become such a dirty word– taxes.
The tax base makes up the major part of revenue for governments at all levels and very few sectors of society do not benefit from the services these governments offer in return.
This fundamental notion behind the idea of tax collection is basic economics – a lot of resources can be saved when we pool them together.
So instead of everyone having to go out and build their own bridge when they want to cross a river, we all chip in to construct the bridge and everyone shares the benefits. And instead of individuals having to buy thousands of books, we all have access to a wealth of knowledge at community libraries.
It’s a very simple concept. And if we want these services we have to pay for them. (So next time someone complains to you about their taxes, ask them if they value things such as health care, street maintenance, emergency response, courts, education, infrastructure, pensions, and garbage pickup.)
Perhaps more important, those who believe that all people are entitled to a minimum quality of life see taxes as one of the most important attempts to equalize the playing field. Looking at the proposed cuts for this year’s city budget, this seems to have been forgotten.
Mayor Larry O’Brien says he wants to run the city like a business. He built his winning election campaign on his “zero means zero” tax-freeze platform. Now, even he has proposed that a two-per-cent “levy” on homeowners’ tax bills may be necessary. It sounds a lot like Dalton McGuinty’s introduction of the health “premium,” after his similar tax-freeze campaign in 2003. Levies, premiums, taxes? It’s all semantics.
Either politicians do not understand the basics of economics or the public has become so taxphobic that the mention of tax cuts has become a free ticket to public office.
Perhaps it is clearer when it comes to personal budgets. People understand that if their salary stays stagnant, they are going to have to find other income or reduce their standard of living. Inflation means the price of bread and milk will rise. In turn, most people demand the same thing for their paycheque.
The idea that the public purse can remain frozen while still maintaining the same quality of life in society is simply irrational.
So two things to keep in mind the next time you vote or participate in a public budget consultation. First, politicians lie and often make promises they won’t be able to keep. Second, if you want to be part of successful society, get ready to pay those inevitable taxes.
“In this world nothing is certain but death and taxes.” The wisdom of Ben Franklin is, oh, so relevant today.
–Garrett Zehr