Councillor Gerbasi is holding town hall meetings beginning next weekend to discuss the impact of the planned cut to the business tax. She asks can the city afford to lose $56 million in taxes. Gordon Sinclair, Jr. has picked up the message and boils the issue down to this:
"A city pleading poverty decides to slash taxes to the business community - while raising bus fares and water bills and closing recreation centres in underprivileged neighbourhoodsd that need them most."
Really does this make any sense. We have discussed this issue at great length re the competitiveness report. Frankly I cannot see where the city hopes to find enough savings to offset $56 million in revenue.
Shifting the tax burden to individuals is what the business community wants as it makes us more "business friendly." Perhaps some of the business people on this forum can weigh in.
<blockquote><cite>Posted By: Triniman</cite>Shifting the tax burden to individuals is what the business community wants as it makes us more "business friendly." Perhaps some of the business people on this forum can weigh in.</blockquote>
Individuals already pay all business taxes. I own a business and pay no tax. My customers give me the tax money and I simply forward it to three levels of government.
IS the business tax not part of your prpperty Tax/Lease. Even those that have a home based business pay a special tax to the City. I think its 150 per year.
<blockquote><cite>Posted By: Mr. Nobody</cite>What municipal tax do you collect ?
IS the business tax not part of your prpperty Tax/Lease. Even those that have a home based business pay a special tax to the City. I think its 150 per year.</blockquote>
I collect: PST, GST , various import duties, city property tax, city tax on hydro, water, business tax, various recycling taxes. The money to remit these taxes comes from my customers . Add a new tax? I'll just add it to your bill.
<blockquote><cite>Posted By: Grumpy_Old_Guy</cite><blockquote><cite>Posted By: Triniman</cite>Shifting the tax burden to individuals is what the business community wants as it makes us more "business friendly." Perhaps some of the business people on this forum can weigh in.</blockquote>
Individuals already pay all business taxes. I own a business and pay no tax. My customers give me the tax money and I simply forward it to three levels of government.
How else could it work?</blockquote>
Then why does the business community complain about having to pay taxes which makes Manitoba less competitive?
So what protion of that is your Business tax ?, and if its removed, do you give your clients a break ?
Doesn't matter who you bill in the end, the aim is to remove it and stop collecting it. If you continue to charge your clients a tax that isn't collected anymore, well, what can I say.
Forget PST, GSt, Import Tax, and all other taxes, stick to the Business tax thats being removed. the City will be 50 Million lighter, who's going to pay for it. Cut grants to the arts community - 3 Million, who else do we give moeny to on yearly basis that isn't really a Core component of the City ?
<blockquote><cite>Posted By: Triniman</cite>Then why does the business community complain about having to pay taxes which makes Manitoba less competitive?</blockquote>
If you're competing with businesses in other provinces / cities that don't charge the tax your costs are higher, so you're not as competitive.
<blockquote><cite>Posted By: Mr. Nobody</cite>So what protion of that is your Business tax ?, and if its removed, do you give your clients a break ?</blockquote>
Business tax is about ten percent of your rent (excluding property tax) Don't have the exact figure in front of me but in my case call it a couple of grand a year. If the tax was eliminated I get a raise.
so to get your raise, you'll still charge your clients the "tax" ?
CommentAuthorDeanK CommentTime21 minutes ago ThanksReport Postquote And... why is the business community saying this will create more jobs?
They reinvest that money , maybe. Which leads to how do you fill the 56 Million dollar hole ? Supposedly more business would come here and pay more municipal taxes. There you go, no need to worry, we'll just wait for business to respond locally, they'll open more offcies and the City recoups the 56 Million that way. or so the Manitoba math should go.
. But maybe they;''ll take those savings and go on a Mexican holiday,.
Good questions northender. I too find it odd that we have the oldest infrastructure in Canada, are closing community centres, etc. - yet want to cut back revenue...which, don't forget, would directly benefit the mayor.
I say good on Gerbasi. Any efforts to educate the public and bring this to a higher level of consciousness can only do good. And one can only hope it would create a more concerned citizen and a more educated voter.
The tax cut should only happen when the city is in a position of good growth. That will keep the momentum going and give back to those that help start it.
Cutting the businesses tax is like getting rid of your sales team to cut costs. You cut off your nose despite your face.
With the average business paying 1500 a year in business tax, this reduction will not lead to any significant economic change. Going to Mexico all the sudden becomes more probable for the business person.
Do you think Asper moved his team to TO because of businesses tax. Personal choice, consolidation of departments and labour supply drive most decisions of CEO’s.
The Mayors office is fooling themselves. But they believe in t this so much they won’t listen to anyone else. There is a conflict of interest here too, with the Mayor owning more than one business in the city.
Behind the scenes administration is giving direction to all department heads to reduce their budgets by 20 per cent.
Service are about to be cut my friends. And citizens are either powerless, or they can’t connect the dots and raise a stink.
If Winnipeg is in a position where it can afford to continue keeping such a high number of over-paid, under-performing unionized workers, I think that it can afford to eliminate the business tax.
Gerbasi should be at least able to define what the Core Services a City are and what the CIty should consider to be Core
Some say funding the arts commnuity for 3 million a year is essential. Some disagree and feel they should find funding through benefactors or go to the feds for funding. it all adds up and when you look at other funding programs, ie. tourism, real estate, arms length body's, etc.
Arguments may be valid on both sides. Wihtout seeing all the details its difficult to understand how the money is spent . Some of the lease agreements are atrocious, they alone cost the city million of dollars per year. Is it time we build a building to house all departments or do we keep supporting private development by paying for it thorugh inflated leases. Take a look at 395 Main and 427 Main as examples of money pits....I know I know, we have to save the buildings etc. etc. etcv. But take a good look at them, not the best bang dfor taxpayers dollars.
Trickle down economics have to flow down in order to work, that means right to the Ward level.