When we are talking about affordability, it's important to remember how hard the governments are also sucking on this teat. Development charges for a semi in Markham are $110,000 per dwelling. Tack all the permit fees on top of that. Even if people tried to sell houses for zero profit (which is obviously unlikely), land+materials+labor+fees is unaffordable to many. Governments love condos as they turn what was ~20K in property tax into 240K and they get to reduce services (no municipal garbage for condos for instance). Markham condo 700 sq ft or larger is ~70K in DC's so a typical condo is millions of cash injection into the municipality. That is why it is almost laughable when existing homeowners complain about the municipalities being in the developers pockets. The municipality doesn't care much about the developer but they are addicted to the income from development. They need more and more density to support the ponzi scheme they operate. Mississauga under Hazel was rocking but now much of that infrastructure is needing replaced and all the money collected has been spent. Approve some towers to get money to fix yesterdays poor planning. Worry about the impact of the towers tomorrow.
My blood just went from simmer to full boil. Why don't people riot over BTC taxes.
Why do they surtax tax car air conditioning?
Because
They
Can.
Why do they increase your property taxes if you fix up your house in a way that doesn't increase the city's costs.
BTC.
We have been told to detach our eaves downspouts from the sewer system because new development is overloading the system. Where did the development charges go? I thought this was what they were for, adding system capacity. Maybe that's a poor example but what's the point of the development charge?
BTC.
I can't understand why we don't go after BTC taxes like the NRA goes after anything that remotely goes against their mission.
Market value taxation:
BTC. Shouldn't property taxes be like an expense report?
For example $0.20 per square foot for the land and $3.00 a SF for the house. 1200 SF bungalow on a 50 X 100 lot is $1000 for the land and $3600 for the house.
If you fully top the house to a 2 story your taxes go up $3600. Maybe a reduced rate for a second floor, $2.00.
Basically a formula that doesn't need interpreters on the payroll and guesswork for the owner if they want an addition.
It also adds to unfair arguments "Your million dollar house in Toronto doesn't get taxed as hard as my million dollar house in Butscratch." Your Butscratch house is twice the size on twice the lot. Not that simple because industry pays out, economies of scale.
Building permits based on job size not cost. Does it cost more to inspect a marble floor than linoleum?
When I took architectural design in college a lot of my classmates got jobs as plans examiners. Under a certain area and height a building didn't need the stamp of an architect or engineer. Now plans have to be engineer or architect stamped, Hamilton anyway. No potential city liability but still a healthy fee.
BTC.
ESA is pushing self inspection but there's still a fee.
BTC. Try explaining the inspection fee to a homeowner who didn't see an inspector on site.
Yes we do need tax revenue for social services and those numbers don't relate to formulas. If that was handled by a head tax or as part of income tax it might get people thinking about where the money is going.
People might ask what the percent growth is of social services. If it's above the cost of living, why?
Is our reality perception out of whack? Are there too many abusers? Is our government incompetent?
The last part is tough. You can't create a living wage and exterminate anyone who fails to make it work. Neither can you ignore Margaret Thatcher's point "At some point you run out of other people's money to spend."
Some of the above may be outdated but things government related tend to change for the worse.
Housing goof up award # 1 goes to the feds for not making adjustments to the capital gains situation in a timely manner. The provinces get a share that they don't turn down.
The 50% exemption may be required for industry to reward investors for taking risks to get new products to market but if there is no value added why the exemption?
They made some changes 50 ish years ago, taking secondary properties off the list.
Five years ago there were some more changes in that the owner had to reside in the property. No more buying a house for your 2 YO and renting it out.
We need a realistic dialogue on what to do to avoid stabbing the present owners in the back while making it possible for future generations to have a hope of achieving their dreams.
Have a think tank. Is it workable to have people choose between the present system and the American one: Your house is subject to capital gains but you can claim the mortgage interest as an expense.
If you keep the present system and sell later in life your gain goes into a RRIF or part RRIF and part TFSA.
Do something except keep on with
BTC taxes.
Maybe if they opened a dialogue on the above a few more people with wake up and say "You mean the gravy train won't last forever?"
I need a pill.
financialpost.com
ca.finance.yahoo.com
torontolife.com
