An Insight Into The Politboro's New Taxes

We say it's time to fight City Hall
Mayor Miller poised to place new tax burden on Torontonians
By LINDA LEATHERDALE, TORONTO SUN

Read our lips: No more taxes.

So, let the revolt begin:

This time we're storming City Hall, where Mayor Big Spender plans to fleece over-taxed Torontonians of their very last hard-earned penny.

And who handed David Miller the keys to the tax war chest?

Why that would be Premier Big Spender, the FIBeral leader who once again is violating Ontario's Taxpayer Protection Act, a piece of legislation I fought hard for, to give birth to the Respect for Municipalities Act.

In the words of small business crusader Judith Andrew, it should be called the "Disrespect for Taxpayers Act."

With his new City of Toronto Act, Dalton McGuinty (who ramped up spending by $22 billion since coming to power and gave himself a 25% pay hike), has given sweeping taxing powers to Miller (who also ramped up spending by $1.5 billion and gave himself a 9% pay hike).

And if we don't fight back now we're going to pay big time.

On top of already paying some of the highest taxes in the industrialized world, here's what Torontonians are in for:

Average households with 2.5 people can expect to fork out an extra $1,182 a year, with a new tax grab that targets everything from beer and spirits to tickets, to new road tolls, higher vehicle taxes and a new land transfer tax.

"The average household cannot afford to carry this extra burden," said Kevin Gaudet, Ontario director for the Canadian Taxpayers Federation (CTF).

He points out the burden is worse for a family of four, growing to almost $2,000 a year. "Families already find it tough to make ends meet without the mayor and council sticking them with extra taxes," Gaudet said.

Toronto is already one of the most expensive cities in which to buy a home, and the last thing we need is to push housing affordability further out of reach. But that's what Miller has in mind.

Even if he held his proposed municipal land transfer tax rate at 0.5%, for an average Toronto home priced at $378,000 it would add another $1,900 onto Queen's Park's $4,200 land transfer tax. That's a total tax grab of $6,100, and that's only the land transfer tax on homes, which are already highly taxed.

It also flies in the face of Queen's Park's land transfer tax rebate to help first-time buyers of brand new homes.

"Make no mistake, a second land transfer tax is nothing short of a home-buying tax. Put another way, this would be like telling a consumer that they have to pay the GST twice every time they go to the cash register," said Dorothy Mason, president of the Toronto Real Estate Board (TREB), in a letter to Miller.

TAX WILL KILL JOBS

TREB is among a number of organizations who are warning higher taxes will hurt small businesses, kill jobs and force people into the 905-corridor.

"Toronto's already in economic decline," said Judith Andrew, Ontario vice-president of the Canadian Federation of Independent Business (CFIB).

She points to a CFIB study which shows Toronto lost 100,000 jobs in the past decade, while the 905-corridor gained 800,000 net new jobs. "Toronto is becoming a bedroom city for the 905," she said.

Rob Evans, CEO of the Ontario Restaurant, Hotel and Motel Association, points out Toronto's hospitality and tourism sector still hasn't recovered from the blows of 9/11 and SARs, and this new tax grab will strike another blow.

The CFIB has launched its protest campaign, called "Toronto Taxes -- Not A Penny More," and you can join at cfib.ca.

The Beer Store workers are also fighting back with a petition campaign in its Toronto stores called Enough is Enough at nodrinktax.ca.

$140 A YEAR EXTRA

The campaign points out up to 58% of what we pay for beer, wine and spirits is pure tax -- making Ontario drinkers among the most highly taxed in the world. And with Miller's proposed tax, it could mean a higher tax burden of $140 a year for 70% of Toronto's households.

"No other municipality in Ontario or Canada charges a tax on alcohol beverages, why should Toronto residents pay more?" asks Robert Edwards, president of United Food and Commercial Workers Local 12R24.

This is how greedy the taxman is when it comes to beer: We pay PST, GST, Ontario basic tax, Ontario volume tax and a federal excise duty, meaning a 50.8% tax burden for a case of 24 at $24, and 40.4% for a regular case of 24 at $33.95.

Edwards ended his letter: "Our members are not only Beer Store employees, they are consumers, taxpayers and beer drinkers. They are average people living on average incomes in one of the costliest cities in the nation. To tax these invidividuals $1.50 to $3 more per case of beer is simply unfair and unreasonable."

I say let 'em drink beer. No new taxes.