Taxes
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Harry Morskate | 4 juni 2010
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Should municipalities, like others, not be
cutting back? Taxes are an imposition and are a heavy burden to bear.
In the past, most taxes were levied by the sovereign who asked for
money from his citizens in exchange for protection. The lord had a
court to run, an army to maintain, the cost of which had to be paid for
by the people. In fact, the citizens paid a fee for the important
service they were offered – a service that they themselves could not
deliver.
The fee was part of the harvest or from excise duty. The word taxes is,
in fact, completely wrong. Citizens pay a price for all kinds of
services that are not privately held: defence, justice, construction
and maintenance of public infrastructure in a country, etc, When
schools are private, we pay for tuition at the school of our choice. If
they are state schools, we pay for tuition, but now through the
government.
The issue is not whether
we pay more or less, but the question is to know what services the
governments – national and municipal - provide us with, and what is the
cost involved. The question is not that, as citizens, we need
to maintain the local machine and that therefore the 'taxe
d'habitation' and the 'taxe fonciere' need to be increased. It is whether the municipality effectively
provides the services that, we, as citizens, demand. |
If
the economy, for whatever reason, shrinks, private and public companies
cut their spending. If the income is reduced, spending must be reduced
accordingly. When this happens to us as private individuals, we have to
make choices: we are not buying that new car yet and we ask ourselves:
“will we go on vacation this year or not?” or “can we afford to go out
to dinner once a week?”.
Citizens should also be able to say to the municipality: “ we demand
less services from you”. Or, “ you need to deliver those services more
efficiently”. But it is very strange
that, once more, as in the past few years, the citizens in our
community are paying far too much. And this while the really basic
tasks such as the construction and maintenance of public infrastructure
are not being executed.
Tax revenues in the last 4 years increased 41% to 44,000 - € 62,000
- € or in other words 315 - € 446, - € per inhabitant.Increasing
municipal taxes, according to the service contract that the citizens
have with their community, is not the obvious approach. The municipality must first impose upon
themselves strict efficiency targets, and limit themselves to basic
tasks. That
is what businesses also do and, in this way, they ensure that products
and services are not too expensive if the economy deteriorates.
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