Taxation and the middle class

[jeffster]

Are we really sugar coating a tax hike on behalf if the City?

Anything less than inflation is effectively a tax cut. 1.1% is less than recent inflation, though 2020 may be lower inflation than average. Either way, it's not really a tax hike, it's pretty much a status quo maintenance of current service and taxation levels.

You can see tax increased or decreased if you look at the mill rate (which is the true tax rate). Hard as it may seem to believe, Kitchener has had a negative tax rate increase for at least 10 years or so. Our mill rate hasn't change much, but the value of homes aren't accurate. As almost every home is undervalued, you're paying less tax than expected. It's like having a job that pays $150,000/year, but the government will only accept that you made $100,000.

Toronto has one of the lowest tax rates in the country, yet their taxes are actually higher than most places. Property taxes are a much more confusing beast.

Either way, Kitchener keeping the tax increase at or below inflation is good news. Though in the future, it'll be higher than inflation. Road work still needs to be done.