Quote:
Originally Posted by Bunk
People never characterize province's increase in revenue as "tax hikes" when hey derive, for example, a year-over-year increase of 12% (2011-2012) in revenue from personal and corporate taxes. Theirs grows naturally with population and the economy. Our tax system requires a manual mill-rate adjustment because it's revenue neutral and is on a shifting assessment base. It's tough politically every single year.
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I think the city as part of the revenue neutral re-balancing should include a 3% increase for inflation every year. So if council does nothing they still get the revenue required. This makes it harder for council to justify any new increases because it is clearly new money and makes it easier for council to take credit for cuts. If council were to cut taxes by 1% it would come out as a 3% increase. To often inflation is used as an argument to increase taxes. It would also help in union negotiations by providing justification for limiting wage increases to 3%.