Time is Not On Our Side
As I eagerly await Andy Fletcher’s newest analysis of the NDP and their economic track record, I thought I would give everyone some food for thought. While I have gone on at length in Andy’s comments section about the perils of the public sector growing faster than the private sector, I also would like to crunch the numbers on the NDP’s inaction on the ever increasing spending of the school boards.
For starters, let’s assume that our fictitious taxpayer makes $70,000 per year, leaving annual net take home pay at $48,420.25 to cover everything but income taxes, CPP and EI. We shall also assume that the educational levy on the property tax bill is $1,400.00.
Now comes the growth rate – let’s assume an average annual inflation rate of 2.1% over the last three years covers our taxpayer’s growth in wages for the future. For the growth rate in school taxes, I have used the three year average of 3.274% based on my own property tax bill.
In the first year, the school tax burden growth is no big deal. However, in years 10, 50 and 100 the numbers grow as follows:
Year Net Income School Tax School Tax as % of Net Income
1 $49,437.08 $1,445.78 2.924
10 $59,605.24 $1,931.39 3.240
50 $136,871.80 $6,995.79 5.111
100 $386,902.20 $34,957.93 9.035
So Mr. Doer, I can understand your politically astute reluctance to reign in the school boards as no one will notice in the short term. Unfortunately, some of us like to think about what kind of legacy we are bestowing upon our grandchildren - surely we can leave them something better than a school tax burden that TRIPLES. And now, about those ever-increasing health care costs…
On a lighter note, motivational tunes:
Skee Lo – I Wish
David Bowie – Cracked Actor
1000 Homo DJs – Supernaut
Delerium - Aria
posted by Unapologetic Ex-Winnipegger @ 9:00 AM
2 comments
2 Comments:
That's nice, but school taxes have no relationship to take home pay, they're based on property assement.
Nor does the Provincial government exercise absolute control over the school boards expenditures.
In fact Doer has been actively attempting to transfer the funding to Provincial taxation instead of on a property assessment basis.
That's when your argument based on incomes will have some merit. If you think school taxes based on property assessment hurts, wait until it adds an additional 3.24% to the amount of provincial taxes you pay.
Believe me, this is not an area you want ANY provincial government tinkering around with or having direct access and control of.
Property values are one part of the equation. In face of increasing property values, the school boards could adjust the mill rate for a net zero sum effect. These would keep taxation levels static.
The system as it exists now allows for too much sleight of hand. Taxpayers blame the City for the higher taxes levied by the school boards. The provinces blame the school boards for profligate spending. The school boards blame the provinces for chronic underfunding. I for one would like to see an open & transparent system where accountability supercedes finger pointing. Education is far too important - we shouldn't allow this gamesmanship to go on.
I would be in full support of an increase to the PST if it meant elimination of school taxes...
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