As many Canadian taxpayers are aware, taxes, taxes, and more taxes are being added onto everything that is essential in our lives and they are making enjoying these things extremely difficult, if not impossible. From gas taxes to our homes, many Canadians are finding the cost of living to be so burdensome that they can no longer enjoy these necessities of life. CTV reports that property taxes are currently on the rise and will continue to increase in several cities across Canada. Toronto, for example, has proposed a 10.5% increase in property taxes to serve their 2024 budget. (16.5% if you include their “refugee surcharge”.) Hamilton has proposed a 7.9% increase in residential property taxes. Even in tax adverse Alberta, Calgary saw an 7.5% increase. Global News reports that Osoyoos, BC is facing a 39.3% increase. Municipalities blame inflation and other levels of government. Budget cuts serve as threats, but they are never seriously contemplated. The politicians get their raises on schedule, their expense accounts get puffed up, and life gets more and more difficult for the average Canadian.&nbsp;Where do our hard-earned dollars go? Property taxes usually go to the government services that most of use or are happy to have available to us (although the funding formulas are more complicated). Police and fire departments, public transit, schools, snow removal, waste removal, maintenance, and more. However, with Canadian public services falling far behind European countries in quality, illustrated through our transportation systems and schools, how can it possibly be costing homeowners so much? Why are Canadians paying an arm and a leg, at the risk of losing their homes, for subpar services? Or worse, for services they don’t really need or services they can’t take advantage of? Gender issues aside (as I know many people, young and old, male and female that feel the same way), I no longer feel safe taking public transit at night. I pay more taxes for both transportation and policing, but can’t use the services.&nbsp;&nbsp;The obvious consequence to this issue: unaffordability of Canadian life. The more the government charges on our homes, the more the average Canadian is handing over, making the cost of living in their homes more than they bargained for. This does not stop at homeowners either. As if renting isn’t already out of control, landlords now have an actual reason to hike up rent. Both of these increases, whether they are carried by homeowners or tenants, put Canadians at the risk of no longer being able to afford their home. For anyone who is already living paycheck to paycheck in this country, these property tax increases across the country can be what makes someone lose their home.&nbsp;&nbsp;Recently we spoke about the government implementing the wartime housing plan to battle the housing supply crisis. This shows us that the government is at least semi aware of the problem (or at least the optics of it). However, they must not care that much if they can increase the cost of homeownership for the lucky few who were able to get into the market. A major effect of increased property taxes can be seen in the construction and investment of properties. Who will be willing to undertake such a project when risks are this high? This will slow down the construction of new housing projects which is the opposite of what the government should be trying to cause. We have already seen this taking place. Also, this increase could cause major instability within the housing market. This can come from people suddenly being unable to afford their house causing them to sell it. Large numbers of homeowners and renters will not be unable to afford unexpected financial expenses.&nbsp;Taxes in Canada, at all levels, must be drastically and dramatically reduced. Governments must be weaned off of housing being viewed as a cash cow. Everything from property taxes, to lot levies, to development charges, to GST has to be reviewed and become a target for tax serious reductions. Unless we do that, cries for more supply are hollow at best, and likely simply dishonest. Supply without structural changes in our economy only brings more taxes.&nbsp;We are bizarrely complacent about the ever-increasing tax burden that they carry. Not a day goes by that we aren’t faced with an example of mismanagement or waste on governmental levels, but we just accept it. It’s seen as the cost we bear for all of the “free stuff” that the government provides for us. However, we will soon see that there is a serious cost to not caring about how inefficient, ineffective, wasteful and careless governments are with taxpayer's money. The seeds of this have been sown. The final, and evident impact of this instance of the increased cost of living in Canada is the migration out of Canada. Next week we will be discussing the number of Canadians, especially highly skilled young people with choices, who are realizing that this country is not able to be their home, and are having to make the difficult decision to move out of Canada.&nbsp;

Taxed Out of Paradise

Explore the repercussions on housing construction, market stability, and the urgent need for tax reforms in Canada

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