The Toronto Star reports today
on some of the new tax measures that Mayor David Miller is implementing in the city's budget. This passage sums it up nicely:
"Many of the proposed levies are "sin taxes" that would tack 5 per cent on to the cost of alcohol (at LCBOs or table service), tobacco and tickets at cinemas and live events. Parking lots would pay the city a yearly fee per space while an unspecified road toll is suggested for the Gardiner and DVP."
Does David Miller even live in Toronto? The cost of living in this city is already high enough compared to other Canadian cities, and the items Miller is targeting contribute significantly to this disparity.
It is especially unbelievable that the city seems to think they can squeeze more money out of parking. Without a doubt the "yearly fee" will fall on consumers who already pay exorbitant prices to park. I suspect that Miller may not be bothered by this situation - seeing it as merely part of his broader campaign to promote public transit and discourage those nasty commuters from bringing their gas-guzzling, environment-destroying vehicles into the city. But, caught in the cross-fire of this battle will be Toronto's entertainment and tourist industry.
If you're a commuter, you have to find your way downtown no matter what - so faced with toll roads and parking gouging you may just switch to GO or
TTC. But if you don't live or work in the city, but merely visit for entertainment or social purposes, you may just not come at all. Or even more troubling, if you are choosing a place to work or set up a business, you now have all the more reason to locate somewhere else. And therein lies the problem - Miller is risking making life in Toronto prohibitively expensive.
I am from a rural area in southwestern Ontario. Many of my old friends and family members simply refuse to come to the city because it's
already too expensive. The idea of paying $20/day to park their car (because how else are you going to get there), and $6 for a pint of beer is just too much. Tack on Miller's 5% tax increase and I'd expect to see even fewer Ontarians contributing to the economy of the provincial capital.
Finally, as Councillor Doug
Holyday points out, these tax increases, combined with hikes in the city's business taxes, can only do further damage to the Toronto economy. Were Toronto the only thriving metropolis in the country things might be different - people and business would still come because they have no choice. But faced with red-hot up-and-comers like Calgary and Edmonton, making life and business in Toronto even more expensive seriously endangers Toronto's competitiveness.
Ultimately, Miller is going to raise a few extra bucks for city programs through these tax increases. But in the process he risks driving people, business and tourism from the city, on top of making life more expensive for those of us already living here. Whatever programs are the lucky recipients of this money had better be worth the price.