Tax hikes slow economic growth

Jun 10 • Letters to the EditorNo Comments on Tax hikes slow economic growth

Sir: Economic growth is impossible if you keep raising taxes.

Recently, Mayor Canniff reported to the Chamber of Commerce the local economy is growing.

Bonus! Then why the tax hike? Did they not tell the new council before raising taxes? With all this good news, how about a retraction?

The mayor hopes for speculators to build more industrial spaces. Good luck, since the cost for new construction is twice the value of old empty ones, doubling property taxes, raising lease rates.

You might have a chance if you lowered the tax rates. But of course you can’t do that unless you reduce the size of the municipal payroll costs.

Heaven forbid council do something requiring fiscal management, fairness or integrity. Makes us think they’ve become one of them, drawn to the dark side.

Every tax hike leaves less in the pockets of average Jacks and Jills who trudge up and down the hill to fetch a pail of taxes. There’s no growth when the government takes the profits; it’s a zero sum.

It is possible to attract newcomers, so attract them.

The city needs to make cost cuts to send a message that it is serious about new business, not filling up abandoned ones. During the decline in population, the city payroll blossomed by over 500 staff and taxes are up 70 per cent since 1995. No one finds this attractive. Especially when we have to fork over a money for the police chief to go to school.

How is it possible the basic economics are void within our economic department? Jamie Rainbird, the economic development manager, stated the department is now undertaking a “boots-on-the ground-approach.” He left out previous business surveys had nearly zero response.

Now you have to go knock on doors? You get your financial affairs in order and “they will come.”

Robert Hakker

Chatham

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