By Don R. Campbell
The headline this morning reads: “The downturn in Metro Vancouver real estate market means billions in lost equity for homeowners: report.”
And this is being repeated in many cities across Canada.
Most of this financial loss is occurring to the net worth of hard-working (and shrinking) middle-class net due to federal & provincial governments looking for ‘votes’ via high profile policy changes.
So that is painful to many, for sure. But let’s extrapolate this loss of “assessed value” just a bit further.
As costs increase for schools and city operations, and citizens demand more from their local cities and school boards, these federal and provincial policy changes have effectively driven DOWN the major source of the money to pay for these key items – property taxes.
Lower assessed values = lower property tax revenue = service cuts OR higher tax rate increases.
This is another way that federal and provincial governments have off-loaded financial pain onto cities and municipalities at NO cost to those higher level governments. The result? Provincial and federal governments receive all the ‘applause’ (voter and good ratings), while the municipal governments take all the pain (future voter anger).
NEITHER of which serve the citizens, who the federal and provincial governments are supposed to be serving.
This is just the beginning of a long list of the pain these policy changes will foist onto the citizens (voters) as well as municipal and city officials – without any direct pain felt by the higher levels of government.
The ripple effect will be huge throughout the country – more analysis on this to come. Suffice it to say:
“So you think that gasoline and food price increases are hurting your pocketbook – just wait to see the financial pain this will bring on all aspects of life.”