Thursday, October 11, 2012

A 1 % New Sales Tax is a Non Solution that Leaves a 99 % Transit Funding Shortfall.




A 1 % ( one)sales tax increase would barley accomplish enough to pay for the administration of such a new Toronto sales tax and most likely a tax that would increase on annually until this new Transit Toronto Sales Tax reached 5 % or 8 %  on top of the existing harmonized GST of 13 %!

Thus realistically there is the possibility that not only Torontonians but all Ontario residents, tourists and business could be paying 20% or more in a few short years for a combined new Toronto Transit Sales Tax and existing harmonized GST.

We do not need new taxes, rather better management of existing revenues and expenditures by our politicians and unelected technocrats and bureaucrats.  

What is urgently required is a guaranteed lasting and meaningful funding commitment to Toronto Transit, the largest and most used public city transit system in Canada, from both the federal and provincial governments that annually transfers 25% (twenty five percent) from existing fuel taxes presently collected by these two levels of governments on GAS, DIESEL, and OIL and amend the current Gas Tax Fund Agreement between the provincial and federal governments.   

    NO NEW









Info Up Date

TABLE 2.12 Summary of Medium-Term Outlook
($ Billions)
Revenue
Interim
2011–12
Plan
2012–13
Outlook

2013–14
2014–15

Taxation Revenue
75.2
78.8
81.1
84.7

Personal Income Tax
24.2
25.8
27.2
28.7

Sales Tax
20.9
21.1
22.1
23.3

Corporations Tax
9.4
10.8
10.2
10.5

Ontario Health Premium
2.9
3.1
3.3
3.4

Education Property Tax
5.6
5.6
5.7
5.7

All Other Taxes
12.2
12.4
12.6
13.1

Government of Canada
21.4
21.8
23.0
23.5

Income from Government Business Enterprises
4.4
4.1
4.4
5.3

Other Non-Tax Revenue
8.3
7.6
7.6
7.5

Total Revenue
109.3
112.2
116.1
121.



Proposed revenue possibilities are:

Revenue source
Nominal rate
GTHA annual revenue
Personal income tax increase
1%
$1.4 billion
Sales tax
1%
$1.3 billion
Property tax
1%
$90 million
Payroll tax
1%
$500 million
Highway tolls
10 cents/KM
$1.5 billion
Fuel tax
10 cents
$500 million
Vehicle tax
$100
$300 million
Parking levy
$365 per space
$1.08 billion
Land transfer tax
1%
$600 million
Development charges
$5,000 per unit
$200 million



PS. As you can see NO mention or thought of a 1% transit tax on banks, unions or corporation? 




Source:

http://taxpayer.com/sites/default/files/GTHD%20Report%202012.pdf
http://stephenrees.wordpress.com/tag/gas-tax/






    

1 comment:

  1. In response to the few who have indicated to me that they do not dare to give their opinion or talk about politics and religion, let me respond this way.

    I thank everyone for their comments but I am not one for political correctness nor worry that my rights of freedom of expression or speech carry a significant cost when those who preceded me gave the ultimate cost of their life for you and I to have and use that freedom.

    We live in a society absolutely dependent on government and yet have cleverly arranged things so that almost no one understands governments and that my friends, is a clear prescription for disaster.

    Warmest personal regards,

    Peter

    ReplyDelete

Thanks for your thoughts, comments and opinions, will be in touch. Peter Clarke