Dear Editor:
Have you ever wondered why every year, it seems to get harder and harder to make ends meet?
Well, that is not a false perception. There are two mathematical concepts at play in our economy. The first being the average household and its income. Generally speaking, that income increases in a linear pattern. When I was apprenticing, my pay would increase on a commensurate basis with my increased skill sets and therefore increased productivity.
Unfortunately that productivity tends to plateau (tradesman level skills) along with wages, which tend to increase linearly thereafter.
Now, the real reason we are falling behind. On the front page of Jan. 11 Wellington Advertiser, we see that Wellington County is seriously considering a tax levy increase of 4.6%.
Ever wonder why a function of 100 (percentage) is used to determine millions of dollars in value? It is the exponential nature of percentages. You see, they always describe the cost increases in terms of year-over-year increases.
It is simpler for us to visualize, but far more sinister, if municipalities were to be totally honest with us, they would pick a base year, establish the necessary tax requirements for that year, then all increases moving forward from that year would be a function of that base year. Then we would see an open and far more honest rendering of our taxes.
Let’s say we take 2023 as our base year and for ease of visualization establish our taxes at $100. We know the increase for 2024 is 4.6%; let’s assume the same increase for 2025. Under the current system our taxes for 2024 will be $104.60 and our taxes for 2025 will be $109.41. In 2025, we are paying 4.6% increase on the increase made in 2024.
My proposal is: that every year is reverted back to the base year (2023) and the proposed increase is made based on that year. Instead of 2025’s increase being another 4.6%, it becomes the actual amount of 9.4%. Following this pattern, over a number of years, it is easy to visualize why we are falling further and further behind.
The next time you get frustrated with the amount of hours you are working and not seeming to be able to put anything aside, don’t get frustrated, get angry with the perpetrators of your frustration.
Write a letter to your MP, MPP, county councillor, mayor and your municipal councillor expressing your frustration. They are the frontline and therefore fully responsible for taxes, and accountable for the increases.
Wayne Baker,
Wellington North