The organisers of the Santa Claus Parade shouldn't overreact by banning anyone from the parade or turn this into a witch-hunt.
The solution is to more actively screen the entries and music, and assigning marshalls to each float to address any problems that may arise.
Let's get it back to what it should be, a fun, family event to celebrate the holidays. Holiday music only would be a good place to start, as would no raunchy dance routines.
