Taxes, budgets, Canada, Toronto

What Stephen giveth, Dalton taketh away

Canadians who were hoping for tax relief in yesterdays budget were not disappointed. On top of the much touted 1% reduction in the GST and the payment of $100 a month to parents of children under the age of 6, other tax relief was given that will see people save up to $795 per year. There is no doubt that the Conservatives cut as much as they could given their minority status in parliament.

On the same afternoon that Finance Minister Jim Flaherty rose in the House of Commons to deliver the Conservative Party of Canadas first ever budget, PC leader John Tory was questioning Premier Dalton McGuinty in the Ontario legislature about the new City of Toronto Act. McGuinty admitted, or at least in a burst of honesty didnt deny, that this legislation will enable the city of Toronto to tax bar drinks, hotel rooms and theatre tickets. McGuinty chastised Tory for not "trusting" the people of Toronto (read, Mayor David Miller and his band of socialist city mothers).

John Tory must not be a very trusting guy. Either that or he actually lives in Toronto. This particular city council is completely indifferent to the plight of the citys taxpayers, especially that of seniors and others who must survive on fixed incomes. Property taxes always rise in the same amount as inflation does with inflation being defined as being the amount that the property taxes go up. Torontos municipal government cannot only stop spending, but the boys and girls on Toronto City Council take absolutely no responsibility for either the amount that they spend or the amount that they expropriate from hard working city residents. Ideology matters; people dont, unless those people are either homeless or "at risk" youth (read gangbangers). The new taxing powers that McGuinty is giving to the provinces capital might just be the final coup de grace in what was once a clean, vibrant city.

An increase in the end price of drinks, theatre tickets and hotel rooms will give tourists one more reason to stay away. And like many other taxes an increase in the price of bar drinks will hit the poor the hardest. Of course those Torontonians who happen to live on the outskirts will simply go to Durham, York or Peel to imbibe, forcing the closures of bars and restaurants located near the citys outer boundaries. But that possibility may never happen--Dalton has a plan.

John Tory has noted that McGuinty didnt deny that he would give the same taxing powers to all other municipalities that Toronto is getting. The guy who promised that you wouldnt pay one penny more in taxes under his government is now setting up entirely new levels of municipal taxation. As Tory so rightfully pointed out, "Dalton McGuinty promised no new taxes but now he cant stop talking about them". Unfortunately for the city of Toronto and possibly the province, Dalton does more than just talk when it comes to taxes.

At least McGuinty did get something right. In the last provincial budget, McGuinty came up with money to extend Torontos subway system. Soon city residents will be able to enjoy a relatively hassle free ride out to Vaughan where their jobs are all going thanks to our anti-business city council. And after work, they might even be able to enjoy a few cheap drinks before returning home to tax central.

Many Torontonians will no doubt be pleased with the tax cuts that were made by the Harper government. We should enjoy it while we still can.

Arthur Weinreb is an author, columnist and Associate Editor of Toronto Free Press. His work has appeared on Newsmax.com, Men's News Daily, Drudge Report, Foxnews.com, Glenn Beck and The Rant. Arthur can be reached at: Columns 2006 '05 '04 '03 '02 '01 '00 1999 Media 2006 '05 '04 '03 '02 Toronto 2006 '05 '04