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The Absurdity of Land Transfer Taxes

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http://www.thestar.com/news/city_hall/2012/10/10/land_transfer_tax_mississauga_mayor_hazel_mccallion_a_lone_voice_backing_the_idea.html

Facing budget problems, cities of course move towards high or never taxes.
Yet, not all taxes are the same.

When it comes to cities, a land transfer tax boggles the mind. A tax should ideally apply to all citizenry in an 'equal' manner as 'all' citizens benefit as a whole. There are exceptions of course. For example, we have progressive income taxation because richer people can swallow a greater cost than poorer people can.

To show the ridiculousness of this tax, let's look at other municipal taxes:

Property Tax Property taxes is the most common tax. You live in a particular community, you pay for the common elements of that community, such as roads, water, transit, public health... All residents pay this fee, whether direct as a home owner would, or indirectly as a renter would via their land lord.

Sales Tax Sales taxes can also b…