Quote:
Originally Posted by burn_this_city
5% of $500,000 is $25k a year. You would have to cut a large amount of income taxes to make this workable. I think people forget that the province transfers a significant amount of income tax to the municipalities.
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These are marginal rates. So it's 5% of the amount between 250 and 925. These are also pounds not dollars (1.7 pounds to 1 CAD). So in the example, someone with a home worth $500k CAD, would pay no tax on the first $425k and then 5% on the remaining $75k or $3,750 total.
I agree the British model is flawed. There's obviously a pronounced element of socialism and wealth redistribution in the UK model. The North American model, however, where virtually no property taxes are levied has the opposite problem. Working people subsidizing upkeep on property for wealthy landowners is absurd. Provincial revenue being transferred to municipalities is a major part of this problem. The cities should support themselves by raising property taxes.