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Fiscal irresponsibility, tax increases, business taxes

Montreal's meter war: A portent of the brewing urban tax revolts

By Beryl Wajsman, Institute for Public Affairs of Montreal

Monday, March 5, 2007

"There comes a time in the affairs between governors and governed when every action by the authorities excites the people's contempt; and every failure to act excites their disgust."

~ John Reed

Montreal has suffered through the kind of fiscal irresponsibility and pillaging of the public purse that afflicts many jurisdictions at all levels of governance. It is a universal problem at this time in this land. In the recent past Montrealers have quietly accepted staggering increases ranging from 36-48% in residential and commercial property taxes , with the latter threatening to create an epidemic of business closures since they encompass hidden business taxes, not seen since the late 1990s and that are now the highest in North America. Montrealers have remained quiescent in the face of the proposal to fine business tenants and property owners if they don't clean up public areas outside their properties. The fines range from $150-$2000. Isn't that the job of the city workers that the tax increases were meant to pay for?

But the straw that seems to have broken the backs of the citizens is the increase in parking meter rates.

Not only do Montrealers now have to pay more money for less time, but the maximum time limits don't even allow you to sit in a restaurant or shop at your leisure or even watch a movie without running outside to feed the meters. Factoring in the combination of more dollars and restricted parking periods, the increases reach 400% in some areas. Aside from the egregious money grab, by taking away free Sundays and extending Mon.-Wed. hours, the hikes are reflective of so much of today's nanny-state rule and regulation that is so intrusive into our private lives. The people's streets are no longer theirs. Our living time is rationed. And our pockets are being picked at every turn.

Well some people have started to do something about it. Small petitions have arisen in several areas of the city. One of the most successful is that of restaurant owner Giovanna Giancapro who has several thousand on hers. But one of the most interesting, and damning, pieces of evidence that has come to light occurred through the efforts of community activist Sharon Freedman.

In addition to calling on the expertise of social activists like Chris Karidogiannis who chaired the successful "Save Park Ave." coalition and bringing others into this new movement, she started to call and write and badger City Hall to find out why these hikes were necessary. She finally got a letter from a high ranking official whose answer hangs the city out on the proverbial ptard. He said that certain city councilors asked for the hikes in their areas and that some $1.8 million of the money was intended to go to the city's cleanliness campaign. Then he added that the meter rates were equivalent to those of some other Canadian cities. Freedman could not find any councilors who had asked for hikes. There were no public consultations. And as for the "cleanliness" campaign, wasn't that the reason for the new fines? As for the "equivalency" issue, the bureaucrat failed to mention that the other cities didn't have our high property tax rates. If you can't have "double jeopardy" in criminal law, how can "double taxation" be justified in fiscal matters? Does the expression "tax revolt" ring a bell with anyone?

Since the "Save Park Ave." victory, Montrealers are feeling empowered. They understand the power of numbers and of coalition politics. When Freedman and some others approached the Institute for support we were more than happy to join in with our organizational assets and resources. This coalition wants the hikes reversed. And they want explanations as to what the city is doing with taxpayers' money when Montreal infamous potholes are now craters; the public transport system is in gridlock; 80% of the water mains leak; snow removal is still sub-par; and the police have been ordered to get busy giving jaywalking tickets -- yet another money grab. Any of this remind you of your town?

These meter hikes are the straws that broke the camel's back. After the Park Ave. campaign Montrealers know they can fight City Hall -- and win! As Global reporter Paola Samuel said, "There seems to be a new buzz in the City. A feeling that the average person can speak out and be heard." And the people are sending a loud and clear message: "Montral...assez c'est assez!" "Enough is enough." Besides my show on 940 AM, The Journal de Montreal, Global TV, CTV, Radio-Canada, and 98.5 FM have all focused attention on this fight. In the coming days the Institute will have an online petition site up and ready and we'll be urging everyone to sign.

For this problem arises in Montreal at a time when every city is plagued by fiscal misfeasance. And there is just no more money to be squeezed from taxpayers. Just this past week Toronto's Centre for Policy Alternatives released a report demonstrating that the top 10% of Canadians have gotten richer over the past ten years while the rest of us are actually working longer for less money. Recently the CPA released another that showed an astonishing 48% of Canadians were just one paycheque away from financial disaster. One of the main reasons was high taxes. Whether direct or hidden as fines and rates.

The confluence of rising government tax grabs and constricting personal incomes should not be lost on any government at any level of jurisdiction. For as John Reed once wrote, there comes a time in the affairs between governors and governed when every action by the authorities excites the people's contempt; and every failure to act excites their disgust. In Montreal that time has arrived. But Montreal is just the canary in the mineshaft. It will come to other cities as well. Citizens are on the march. And City Halls everywhere should tremble at their quake.


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