A Taxing Problem

What if we took the most recent Fraser Institute tax attack report, taxmanThe Canadian Consumer Tax Index, and its claim of a 1787% tax increase since 1961 at face value and simply shrugged? Not for the reasons Matt Elliott did yesterday when he challenged the robustness of the report’s methodology but from an angle of nonchalance. Yeah, so? Big deal. I’m with Oliver Wendell Holmes. I like paying taxes. With them I buy civilization.

Or in other words, would I rather be living now in 2013 than back in 1961?

Infant mortality rate in 1961 was 27.1/1000. In 2011? 4.9/1000. Canadians lived 10 years less on average in 1961 than they do now. GDP per capita… well this.

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Of course taxes aren’t the sole reason for those positive changes but neither did taxation roll us back to the dark ages. We are hardly taxed to death, as some like to say. In fact, the stats point to just the opposite.

So let’s stop operating from the premise that taxation is inherently bad. Politicians like Councillor Doug Ford should be derided and dismissed outright when they state something as glaringly asinine as “All taxes are evil as far as I’m concerned.” taxesareevilThe subtext of such a sentiment is that the person expressing it is not to be taken at all seriously. It is a mind-numbingly idiotic thing to say that only a certified crank would believe.

The negative economic effects of taxation have long been exaggerated while the benefits have been methodically downplayed. Every time you go to see your doctor and don’t have to open your cheque book is your tax dollars at work. You drive to work today? Your tax dollars paved the road you used. Whatever you kid learned in school comes from a portion of your property taxes.

Without taxes, there is no public sphere or common wealth. Everything’s for sale and anything deemed of worth usually goes to the highest bidder. Taxation is one way we seek to mitigate the damages inflicted by the laissez-faire, everybody-for-themselves workings of our free market system.

And now comes the great debate about paying for a long overdue public transit expansion throughout the GTHA region. How to fund The Big Move. No taxes, no way, no how says our mayor and his ardent supporters. Government’s already got its boots on the neck of the taxpayers and emptied our pockets. That well’s been tapped dry. emptypockets2Read the Fraser Institute report if you don’t believe Mayor Ford.

OK. So, well. How do you propose to build and run the transit network we really needed about a decade ago, oh haters of taxes and respecters of taxpayers? You got $50 billion or so kicking around, easily accessible?

*crickets, crickets*

With no credible plan to pay for any new transit (and with three years to come up with one), the mayor and his allies have switched tacks and now seek to undermine the trustworthiness of the governing Liberals, citing scandal after scandal as proof that they shouldn’t be allowed further access to the taxpayer money tree. ORNGE! EHEALTH!! GAS PLANTS!!! GAS PLANTS, FOLKS!!!!

Now I don’t want to sound as if I could care less about accountability. The mismanagement and dedication to evading responsibility for it is deplorable. I’d be more than happy to turf this government from power and start with a clean slate if I saw I viable alternative, at least on this particular issue of transit.

So far, I don’t. It’s all populist pandering from both left and right with nothing much more on offer than change for change’s sake. distractionThe Liberals are tired and fresh out of ideas. Vote for us, for a different kind of tired and lack of new ideas.

And in terms of transit building, I’ll go even one step further. Add these scandals up, right up, generously to the top. Call it $3 billion of ill-spent money and let’s pretend it was a single year outlay. What was the total spending in yesterday’s provincial budget? $127.6 billion? That represents a little over 2% of the total 2013 expenditure. Statistically, a rounding error.

Before you go all off and start labelling me a Liberal apologist, my point is, all that money, the entire $3 billion would make but a dent in the Big Move. It would pay for just over a year of the proposed 25 year timeline. Where’s the rest going to come from?

We can bitch and moan, mumble and grumble, huff and puff and threaten to blow the shaky credibility house down but we’ve still got a shitload of transit to build. Until someone comes up with a better plan* to pay for it, our taxes are going to have to do the trick. Just like they have always done when it comes to paying for the public good.

well

impatiently submitted by Cityslikr

 

* There won’t be a better plan. If there was a better plan, we would’ve heard about it by now.

Citizens As Monetary Units (Hee, Hee. Hee, Hee. He Said ‘Unit’)

We here at All Fired Up in the Big Smoke… and by ‘we’, I mean ‘me’, still all alone in this office for months now… I’ve been pondering upon this taxpayer vs. citizen notion. Probably much of that having to do with our Walmart manager mayor, Rob Ford, and all his talk of ‘value for money’ and Respect For The Taxpayer and “Good morning, sir. Can I help you? Linen and nachos? Aisle 37.”

It’s a monetization of citizenship.

The issue reared its head again recently, with the questions of spending over at the TCHC and the mayor’s own words a week or so ago when he was sputtering out blather in an attempt to cover yet another homophobic gaffe. He’d been the lone voice at council to vote against taking provincial funds to provide STI awareness and screening. His publicly stated reason? “Everyone says it’s provincial money. No. It’s taxpayers’ money. So, you know what? In the big picture, they say it doesn’t cost the city a dime. Well, it costs people money…”

That’s when it hit me. No, Mayor Ford, it isn’t the taxpayers’ money. Taxes are the rent we pay to live in a civilized society. (h/t Oliver Wendell Holmes Jr..) We pay so that we can walk/drive/bike on safe, clean streets. We pay to have potable water come directly into our homes and to have the sewage taken away. To have our garbage collected. The snow plowed. To educate our children. Etc., etc. etc. Taxes are what we owe in order that we can inhabit a hospitable environment and more easily get on with living our lives.

Take a look at this and see the breadth of services this city offers in return for the taxes we submit. I’d call that pretty good value for money. And if you still aren’t convinced and resent handing over your money, let me paraphrase a Tweet I saw awhile back. Go live in the fucking woods.

Yes, there are always hiccups. Misuse of funds. Sometimes even illegalities. That tends to happen in organizations that deal with billions of dollars a year. So far, though, even in gravy laden Toronto, it is a very small fraction of the overall money spent and, as the Auditor-General report shows, mechanisms are in place to root out and curb excesses.

How taxes are allocated and who pays how much is all part of the negotiation of living in a liberal democracy. Parties form around that particular issue. Some elections hinge on it. (See, Toronto municipal election, October 25th, 2010.)

I attended a transit seminar earlier this week at the Institute on Municipal Governance and Finance where one of the speakers was Barry Watson, President and Chief Executive Officer, of Environics Research Group. In his presentation, he stated over 2/3 of people expressed a preference for better services to tax cuts. In fact, in a survey done last December entitled Focus GTA, just as the Ford Nation was forming, more than 3 times the people asked cited transportation concerns over the issue of taxes. According to Dr. Watson, for most Canadians (both inside and outside Ford Nation presumably) the issue of taxation is not a major fixation. 70% of us see taxes as mostly a force for good, and that’s down noticeably over the past 5 years. I wonder why that could be.

Cue the anti-tax crusaders.

For, it seems, taxes do become a dominant issue when we start to believe that they are being squandered by our government, when all we hear about is wasteful spending, disrespect for the taxpayer and, yes, Teh Gravy Train. It’s almost as if our one note mayor and his crack team of messengers researched this and realized they could put together a winning formula by just harping on, over and over and over and over, about waste, excess and disrespect, using big numbers and de-contextualized anecdotal evidence, to blow the situation out of all proportion and beyond the actual reality on the ground. If one tended to cynically believe in that sort of crass politics, that is.

That is in no way to diminish the problems that arise like we’ve seen this week with the Toronto Community Housing Corporation. But we need to step back and take a more measured response, to try and understand its actual scope and the true degree of malfeasance at work here. Over-reacting and baying like bib-and-tuckered bloodhounds (for all you Christopher Fry fans out there) is counterproductive. It only plays into the mayor’s hands and his anti-tax/government spending histrionics. Without our indignation and outrage, he’s got nothing.

To survive, Mayor Ford needs to de-couple the notion of citizenry and taxation. He needs to reduce our relationship with government to nothing more than a straightforward financial transaction. He needs us to accept his view that taxes are extortion. Money unjustly and, quite possibly, criminally ripped from our wallets and fed into the gaping maw of an overweening and insatiable alien life force that serves no other purpose than to suck us dry.

We know better than that. Let’s stop falling prey to this nasty appeal to our worst instincts. It benefits no one in the long run except exploitive politicians bent on delivering us whole hog to the vagaries and indifference of pure, unfettered free marketry.

citizenly submitted by Cityslikr

Citizens V Taxpayers

Are We Not Men? We Are Devo! Are We Not Citizens? We Are Taxpayers!

People who think of themselves as ‘taxpayers’ or ‘stakeholders’ rarely act like citizens.

What’s the difference, you ask?

Citizens engage. Taxpayers and stakeholders are units in a monetary transaction. They pay. They demand goods and/or services in return. Civic commitment ends there.

This thought struck me as I booted a half-filled bottle of juice that had rolled out from under a seat as I made my way down the aisle of a streetcar a couple nights back. Sitting down, I looked around. Cue my inner Bette Davis: What a dump! (Although it always comes out sounding more like Katherine Hepburn circa On Golden Pond.) It looked as if some sort of evil gust of wind had blown through and deposited a couple blocks worth of litter around the place. Newspapers. Paper bags and dirty napkins. Bottles and cans.

Citizens take their garbage with them. Taxpayers leave it behind on buses, streetcars and subways, reasoning that they pay the lazy union’s outrageous wages, so they can clean it up. Citizens pick up their dog’s poo. Stakeholders pretend that it’s not their dog. Citizens park illegally, get a ticket and pay it. Taxpayers and stakeholders park illegally, bitch about the ticket being a money grab and clog up the legal system trying to fight it in the hopes the issuing officer doesn’t appear in court.

Taxpayers and stakeholders see every government action as an intrusion and imposition into their lives, every tax a reach into their wallets. Citizens see government as an extension of themselves, duly elected to perform the task of keeping society functioning in an equitable and constructive manner. Citizens pay taxes (sing it along with me as it’s become a familiar refrain) in the words of Oliver Wendell Holmes Jr., to… buy civilization.

Taxpayers and stakeholders instead quote their patron saint, Ronald Reagan, and pronounce: Government is not a solution to our problem, government is the problem. They call for smaller government. Citizens do not see small government as a panacea to our problems. In fact, citizens regard the call for smaller government with suspicion, a coded phrase for deregulation and lack of oversight. Smaller government leads to increased Walkertons, Gulf oil spills, near economic collapse.

Taxpayers and stakeholders represent the screaming id of civics discourse. What’s in it for me? I pay too much in taxes. I get too little in return. Me, me, me. I, I, I.

Citizens engage. With their neighbours. With their politicians. With the wider world. Citizenry self-interest extends beyond personal bank accounts and cheap parking. Citizens realize that their well-being is best served when everyone’s welfare is tended to not just their own.

And as we witnessed over the past month or so, with events transpiring as they have in Tunisia and Egypt, it is citizens not taxpayers or stakeholders who overthrow the forces of repression, fear and brutality.

happily submitted by Cityslikr