12-01-2020, 11:52 PM
(12-01-2020, 11:24 PM)tomh009 Wrote: The federal government really cannot fix this. Municipal governments only exist at the pleasure of provincial governments. Yes, the province could fund municipalities out of tax revenue -- but if you really want the taxes to be progressive, and poor people paying less, then you need to fund it using income tax, not HST.
As for block grants, are you proposing that each province/territory should get $x per resident, regardless of its economic situation? If yes, then the rick provinces would love this, but the less well-off ones would suffer. This might be simpler, but it would increase inequality. Transfer payments are designed to reduce inequality, and they have been doing so since 1867.
You could fund it with a wealth tax...just a better designed one than property taxes...
Honestly, it is down right weird that the province holds such power...the last municipal election should have led to a revolution, if people actually cared about their municipal governments. And yet for some reason, the province feels it necessary to also control municipalities by starving of them of funding, then using grants to influence how they spend their budget.