Use provincial funds to offset tax increases and keep jobs in Toronto

TORONTO: The Canadian Taxpayers Federation (CTF) Ontario Division calls on Mayor David Miller and Toronto Council to use new provincial funds to hold the line on business taxes and limit residential property tax increases.

"The Mayor just received a $45 million gift from Ontario taxpayers. He should use it to keep our 'economic engine' running, by canceling the proposed business tax increase," said CTF Ontario director Tasha Kheiriddin. "He should furthermore hold residential property taxes to the 2 per cent level of inflation, which he promised to do in the last municipal election."

In announcing the transfer of funds, Municipal Affairs and Housing Minister John Gerretsen stated that he hopes the City of Toronto will apply $25 million of the new money to offset the proposed business tax increase. This increase, of 1.5%, would have brought the city $27 million in revenue in 2005.

"Mayor Miller should heed Minister Gerretsen's advice. The City of Toronto already has the highest business taxes in the GTA. Another tax increase will drive more businesses out of the city and mean job losses for Torontonians," said Kheiriddin. "According to the Toronto Board of Trade, companies leaving the Mega City have taken 37,000 jobs with them since 2000."

Toronto's budget forecasts a "shortfall" of $91 million, which the city was hoping to collect from Queen's Park. Since by law municipal budgets must be balanced, the funding announced today requires that the city find $46 million in savings before the budget is approved on Monday.

"There are plenty of places the city can trim its budget. Do taxpayers really need to spend $1.5 million for a new 'branding exercise' And why is the city proposing to spend tens of millions of dollars to hire hundreds of new employees, when we already have over 1,000 more workers today than when Toronto was amalgamated " asked Kheiriddin. "Toronto should prioritize spending on core services, such as police, fire, and infrastructure repairs. It should not make up for this 'shortfall' by further raising residential property taxes, which have already increased 20% in five years."

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For more information, contact Tasha Kheiriddin at 416-725-0501 / 416-203-0030.