Crazy not to be afraid of Miller's taxes

By Rob Granatstein

When it comes to new taxes, Mayor David Miller told the business community very simply on Wednesday: "Don't be afraid."

Be very afraid.

And homeowners, that goes for you, too.

Unless Miller -- and his Harvard economics education -- knows where the magical pot of gold is buried, the city is headed toward tax torture -- user fees, property tax hikes and, of course, new "revenue tools" that could kick in this summer. There's a $71-million budget hole this year that must be filled, even after the city nearly empties its reserve funds. Next year? You don't want to know.

Now, we're not saying hiking business taxes 1.28% is going to drive anyone out of town. But tacking on road tolls, surcharges, parking levies, and sin taxes to businesses already facing taxes higher than the 905, and the problem emerges.

Here's where Miller is right: This city does need investment. Our roads, our transit, our community centres, you name it, they all need a serious infusion of cash.

There is truth to the statement: "You have to spend money to make money." If there's nothing here, why would people or business stay?

But that doesn't mean overspend. It means seek competitive prices.

And that leads us to why we're afraid.

We have no problem with people making a fair wage in this expensive city, but paying 41% more than the provincial rate and 27% more than the federal rate for carpenters, electricians, and other tradesmen makes no sense. We're pretty sure overpaying isn't taught at Harvard.

We want workers to have money in their pockets, but don't just give our money away, mayor.

Many of these workers aren't even keeping that money in Toronto, anyway.

A large percentage of police, fire, and city workers don't live in Toronto. Heck, the city's chief financial officer and Miller's own chief of staff don't even call the 416 home.

Yes, the mayor of the city should look out for the blue collar worker, but his job is also to protect and encourage Toronto homeowners and businesses.

We're afraid David Miller has forgotten that point.