Letter on Toronto's proposed new taxes

This morning, I sent the following letter to my city council representative. What do you think about Toronto's proposed new taxes?

Mr. Jenkins,

As you know, today City Council will vote on two new taxes.
I understand it is your intention to vote against these tax increases, and for that I would like to thank you.

The proposed taxes are bad policy for Toronto for a number of reasons:

Both taxes piggy back existing provincial taxes and take advantage of "one-time" occurrences like renewing a driver's licence and buying or selling a home. This is as opposed to a regularly paid tax, such as property tax. It is clear to me that these taxes are designed to blur the line of responsibility between the provincial and municipal government so voters are unclear who should be held responsible. In addition to the bad precedent of ambiguous lines of responsibility, the taxes were not a part of the Mayor's election platform or mandate. Toronto deserves an accountable city hall and voting against these taxes is a vote for accountability.

As a city, Toronto also faces a challenge with residents and businesses moving to surrounding suburbs, thus decreasing our tax base and weakening Toronto's economic engine. I would not be surprised if the net outcome of the land transfer tax is a smaller total tax base as residents move to other municipalities in order to save thousands of dollars on a home purchase. Buyers and sellers budget based on the total cost/revenue of a sale or purchase. This new land transfer tax will mean sellers paying more and buyers receiving less in Toronto than in areas like Mississauga, Whitby, Oshawa and even Kitchener-Waterloo.

In addition, I am not yet convinced that the city has yet made the effort to find savings within the existing expenditures. Before raising the cost of living in Toronto, city council and management must look for ways to more efficiently spend the current revenues. A competitive business would not raise prices until all other avenues were exhausted. Similarly, Toronto should view itself as a competitive business for residents and businesses in Ontario.

Given the reasons above, I hope that you and your colleagues will take the opportunity today to turn down these tax increases and keep Toronto accountable, strong and competitive.

Sincerely,

Tim Tutsch