When it comes to complex questions, we prefer the answers to be simple. (Wrong, maybe – but simple.) Sometimes, however, the intention of those who devise an easily grasped concept is to keep the assumptions behind them out of sight.
For instance, take IPPG. That’s shorthand for “Inflation Plus Population Growth” – the easily grasped concept promoted by the Canadian Federation of Independent Business in a report that got some play on the Sun’s op-ed page. The federation criticized municipalities throughout the province for violating IPPG – the benchmark it maintains should be the limit on spending.
Government, in other words, should tax only to the extent that its budget increases cover inflation plus population growth – and anything above that is fiscal irresponsiblity. It targets West Vancouver, in particular, for an egregious growth of 62 percent – a figure disputed by its mayor, Pamela Goldsmith-Jones, in a counterpoint op-ed piece.
The mayor identifies a key assumption hidden in IPPG: that the existing level of public services is all the public wants. In fact, noted the mayor, the public wanted an increase in services, particularly for recreation facilities – and that’s what they were prepared to pay for in tax increases.
But the real hidden assumption, it seems to me, is that government services are distinct from and inferior to private consumption.
Imagine applying IPPG to your own aspirations – that all you should want is an increase in revenue that covers inflation. In other words, your existing level of consumption is presumed to be sufficient, and anything else above that is excessive. Imagine a business association seriously promoting that idea. (Don’t buy anything more from us. You’ve got enough already!)
Take that idea a little further, and you’re left with the conclusion that any chance we get to reduce or eliminate what government provides, the better off we’d be. Which is pretty much the ideology of the far right. Taken to extremes, privitization is rationalized, even if it costs more to deliver than public services, simply because government expenditure is second best.
In the West Van case, the public voted for the decision-makers who raised the budget – and for the expenditures that tangibly improved their quality of life collectively. That fire hall, that soccer field, that swimming pool – those are investments in community. It’s what makes West Van a better place.
Those are things I cannot purchase individually as a consumer, for my own private purposes. It’s the price I pay as a citizen, as a member of a community.
And you know, a stronger, happier community is something I’d like to see increase faster than the rate of inflation.
Coming from Florida- I have seen the results of taxing by market value price.. and now they are in deep doo-doo with prices falling.
I faced a 100% increase in 4 years… now it’s almost back to normal.
Vancouver will find itself in the same situation soon.