The headline this morning reads: “The recession Metro Vancouver property market means billions in lost equity for homeowners: report. ”
By Don R. Campbell
“So you think that gasoline and food price increases are hurting your pocketbook – just wait to observe the financial pain that this will cause all elements of life. ”
And this has been replicated in several cities around Canada.
As costs increase for schools and town operations, and citizens need more from their local cities and school boards, these national and provincial policy changes have effectively pushed DOWN the significant origin of the money to pay for all these vital items – real estate taxation.
The ripple effect will be huge throughout the united states – more analysis on this to emerge. Suffice it to state:
Lower assessed values = lower property tax revenue = service cuts OR tax rate rises.
This is just the start of a very long list of the annoyance those policy changes will foist on the citizens (voters) as well as municipal and town officials – without any immediate pain felt from the high levels of government.
NEITHER of which function the taxpayers, who both the national and provincial governments should be serving.
This is another way that national and provincial governments have off-loaded fiscal pain on cities and municipalities at NO cost to all those greater level governments. The outcome? Provincial and national authorities receive all of the ‘applause’ (voter and excellent evaluations ), although the municipal governments take all the pain (future voter anger).
So that’s painful to most, for certain. However, allow ’s extrapolate that reduction of “evaluated value” a bit further.
Nearly all of this fiscal loss is occurring to the net value of hard-working (and shrinking) middle-class internet as a result of federal & provincial governments searching for ‘votes’ through high profile coverage changes.