• CTF calls on Toronto council to curb tax increases and wasteful spending

Pre-budget submission to City of Toronto

Toronto: The Canadian Taxpayers Federation presented its recommendations for the 2006 City of Toronto Budget today at Toronto City Hall. Toronto is currently facing a shortfall of $415 million on a proposed $7.65 billion budget.

The CTF recommended that the city hold residential property tax increases to the level of inflation, freeze business taxes, engage in zero-based budgeting, properly fulfil its core responsibilities instead of wasting money on low-priority items, and move to revenue-neutral user fees on some services.

"Toronto council needs to put the brakes on tax increases," said Tasha Kheiriddin, CTF Ontario Director. "Residents cannot afford a 6% tax hike, as has been suggested by the Mayor. Tenants currently pay too much compared to homeowners. Businesses are at a disadvantage compared to those of neighboring lower-tax municipalities."

Instead of squeezing more money out of taxpayers, the CTF recommends that the city revise its budgeting practices and spend money on essentials, not frills. Priority should be given to public safety and infrastructure instead of items such as culture and beautification programs.

"The city should heed the advice of its own deputy manager and go to zero-based budgeting, to determine whether programs currently in operation are necessary or efficient," said Tasha Kheiriddin. "Prioritizing culture and a clean and beautiful city when gun violence rages in our street makes no sense whatsoever."

Added Kheiriddin, "Toronto should also review city salaries, which have increased 19% in four years, compared to an average increase of 10.5% for all workers. The city should also scrap its union-only policy which prevents it from getting the best value for taxpayers on labour costs."

The CTF also recommends reducing taxes and substituting revenue-neutral user fees for services including garbage pickup and the TTC. "A TTC fare hike is unacceptable unless it is accompanied by a property tax decrease", said Kheiriddin.

The full report of CTF recommendations is available by clicking here.