Ontario municipalities are looking to forge a new deal with the province using new taxing authority in Toronto as leverage. After all, what's good for Toronto should be good enough for the rest of the province. Meanwhile, not a single politician at the provincial level is coming to the defence of overburdened taxpayers. Ironically, one politician in a position to champion the taxpayer - John Tory - says he won't.

Not one leader has said he will repeal the taxing powers now being wielded in Toronto. Nor has any party leader rejected rolling out new taxing powers across the province. With collective budget surpluses in Canada running at $29 billion now is hardly the time to increase taxes. Ontario taxpayers need to be shielded from this new attack on their wallets.

Early in the Spring of 2008 a report is expected calling on the province to roll out new taxing powers to all municipalities in Ontario. The Association of Municipalities of Ontario (AMO) is working jointly with the province on a Provincial-Municipal Fiscal and Service Delivery Review. The report will address matters of provincial funding for social services provided at the municipal level. All political leaders are saying they support this notion, in some fashion, even John Tory.

NDP leader, Howard Hampton has been the most consistent of the bunch. From the beginning he has supported new taxing powers for Toronto. Premier Dalton McGuinty has also been consistent. Since breaking his signed commitment not to raise taxes in absence of a referendum, he has consistently raised taxes both with the health tax and by giving the city of Toronto new taxing powers. The Premier will not repeal Toronto's taxing powers and is using the timing of AMO's report to avoid committing one way or the other on the issue of extending the tax net. Although, he will give it 'serious consideration'.

PC leader John Tory's position on the taxes has been the most puzzling. While campaigning to be mayor of Toronto, he argued in favour of new powers for Toronto while carefully avoiding specifics. As Leader of the Opposition he and his party voted against the City of Toronto Act with its new taxing powers and expressed concern about the burden new taxes would create. Now that the city of Toronto has passed one new tax, grabbing $65 million (a garbage tax), and has at least four new ones on the table (land transfer, vehicle registration, liquor sales and billboards) grabbing close to $400 million more, John Tory still says 'tax away!'. Further, he suggests he would consider similar new taxes for cities on a case-by-case basis.

A position on higher taxes should be easy for John Tory. Ontarions are already overtaxed: 46% of our incomes is enough taxes. Politicians should be looking for ways to make this number go down not up. Municipalities should undertake detailed efforts to cut costs, find efficiencies, and generate new non-tax-based revenues. Once this process is completed, if municipalities wish to broaden the tax base for growth-based revenue they should go ahead, but only if it starts out as revenue neutral and only after having received approval from ratepayers in a referendum. Illinois did it and it is under consideration in Alberta.

No one really expects either Mr. Hampton or Mr. McGuinty to lower their taxes. Taxpayers have been hammered by their parties before. Mr. Tory's promise to scrap the health tax is a very positive first step. However, Tory's tax cut won't amount to much if he doesn't shield taxpayers from a new tax grab by cities. Mr. Tory needs to quit listening to municipal politicians and start listening to taxpayers. The latter group provides a few more votes.