Quote:
Originally Posted by Cage
Property taxes have been rising faster than inflation, but so have property values. If the senior is paying property taxes they also own property, so their asset base rises commensurate with the property tax.
That said seniors who don't own property have a bigger problem, they too have to bear increased property taxes as the landlord passes along the property tax increase through rent increase.
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The problem in making this comparison is that City expenditure tends to rise at a linear rate and is an annual cash flow, whereas and the returns from owning property are usually highly leveraged (20x for a 1st time homebuyer), non-linear (have volatility) and are not a cash flow.
From your argument it would follow that I should have more money in my wallet because my property value decreased. While it's possible that this could happen, (with a 1 yr lag-time, which is huge for this scenario to play out), it wouldn't matter because the overall property value has decreased and thus I'm worse off.
Because the level property taxation based on City expenditure only, it really has nothing to do with the returns from owning property. The reason why the City prefers an asset-taxation is because it limits any volatility in their revenue (the homeowner has to deal with the volatility, the City does not). In some ways, property tax is a really bizarre way of spreading out the burden for City expenditure. If anything, it just means that the highest valued properties pay more tax, even though they use the same amount of services (alternative systems mean more volatility in revenue, especially in an economic depression)
It would be accurate to say that if a senior owns property, they are paying the equivalent of 12 monthly adult passes to the Finance & Supply department, rather than Calgary Transit. If a senior doesn't own property, then they are likely incurring less of a burden than property owners because the dynamics of the rental market will dictate if the landlord can pass on any theoretical increase in property taxes. Either way, the City gets the money.
Are there any Alderman that have, on record, asked for cheaper monthly adult passes? Or do they all just think that working people can continue to absorb increases in transit fares that far exceed inflation (locally and nationally)?