Sunday, October 14, 2012

A Yield of 6 Billion Annually for a 1 % Transit Tax on Banks, Corporations and Unions, compared to 1.3 Billion for a 1% Sales Tax!







For the past 35 years Toronto politicians along with federal and provincial MP and MPP’s representing their political parties throughout the GTHA have not been able to come up with a meaningful and lasting funding arrangement for effective public transit.

For the media and special interest groups to suggest that Toronto’s property taxpayers on their own could, is totally unrealistic and a self serving political agenda by a few career politicians and businesses who themselves cannot get their hands out of the public trough.

Asking Torontonians to suck-up yet another little new sales tax increase of 1%, that over the years would quickly become 5% or more, would not come close to the annual BILLIONS of dollars needed to fund any new subways, let alone LRT’s or the current infrastructure requirements for existing operations and never-ending fare and salary increases of the TTC, is scandalous. 

My proposed 1% Transit Tax on Banks, Unions, and Corporations Operating in Canada would generate $ 6 Billion annually for existing public transit in Canadian cities, including Toronto. 

Compared to the 1% Sales Tax on citizen being proposed by special interest groups and businesses that would yield $1.3 Billion yearly, road tolls of $ 1.5 Billion or parking levies for $1 Billion annually according to media reports.

This once again proposed Toronto sales tax, by special interest groups and businesses, for a 1% additional tax on the backs already overburden taxpayers would not at all come close to the annual funds currently needed just for the current infrastructure operations and maintenance requirements of the existing operations of the TTC, let alone any new subways, LRT’s and new and improved roads and highways. 
A Transit Tax of 1% on Banks, Unions and Corporations would Generate 100% more funding for public transit than a 1% Sales tax on citizens

Elected city officials, like councillor Adam Vaughan, who preach the need for more taxing power in order for council to somehow be more responsible and grow the city is hogwash.

Toronto’s transit and overall fiscal crisis is the cause of chronic out of control spending habits and non prudent councillors continued dereliction of duty on behalf of residents. It was not because of any perceived lack of or declining city revenues.

Prior to this city's new current administration, spending increased by 60% while inflation rose only by 23% over the same ten year period.

It has been obvious and the facts back it up that council has concerned itself over the years, not with transit matters or due diligence for the overall city fiscal responsibilities but rather with attempts at controlling the life’s and habits of Torontonians.

With some 200,000 plus by-laws, regulations down to the level of what we eat, drink, French fries, no salt or shark fins or tails aimed at reducing and controlling personal choices and freedoms of individuals, corporations and union members alike.

And all of course for the collective good as decided by them and on the basis that some citizens lacked “self-control” and must not be allowed personal choices and freedoms of rugged individualism.     

History repeats itself and has shown us that arbitrary actions by elected councillors and governments that do not treat all taxpayers equally before the law are arrogant enough to take away anything from citizens, including fundamental individual democratic rights of freedoms, personal bank accounts, private or corporate property and businesses or everything you have, for what they might decide is the common good for all.

Councillor Vaughan’s further comment about development charges within city wards being solely for the benefit of local needs, as perceived by local councillors and not for distribution across the entire city to address the needs of Toronto as one city is narrow minded at best.

The corporation of the City of Toronto does not need property tax increase over the rate of inflation and definitely not any new sales tax, road tolls, new development taxes etc.

However what is urgently required are these three following items:

1.   Councils inability and unwillingness to implement meaningful economic reforms, prudence and allocation of existing taxes involving pay as we go financing, zero based budgeting, spending reductions and program eliminations staring with councillors salaries by $30,000 per year and elimination of existing one year golden severance package of salary and benefits, go after tax evaders by corporations and citizens, reduction of staff positions and numbers and a reduced number of councillors in line with provincial and federal riding’s.

2.   A demand from the federal and provincial governments for a minimum of 25% of existing fuel, gas and diesel taxes for the GTHA public transit system.

3.   A 1% Corporate citizen transit tax (1% federal and 1% provincial) on gross revenues of all Canadian, federal, provincial, territorial and foreign corporations, Unions and Union federations registered and or carrying on business in Canada.(CUTT)

This is not the era of Queen Victoria and it’s now time that all our Canadian companies and unions doing business in Canada honestly and transparently become good corporate and union citizens organizations by willing to suck-up a small tax increase dedicated to public transit across Canada.
To this end it is also time that all GTH area elected provincial and federal members flexed their muscle and stood up on behalf of their residents and not their respective political parties and passed such a 1% Corporate and Union transit tax.

They as a group regardless of political parties represent 38% of the entire population of Canada and 47% of Ontario’s population in the GTHA.

As elected representatives of the people this group should be a combined voice of one, in supporting and pushing for a
meaningful and lasting funding proposal of existing public transit within Canadian cities through a 1% transit tax on both Corporations and Unions doing business in Canada.

1% transit tax levied on both Corporations and Unions as a meaningful and lasting funding proposal for existing public transit within Canadian cities by our federal and provincial governments.  

Voters across Toronto, the GTHA, Ontario and the rest of Canada have swallowed enough tax increases from all three levels of government.
 
It is now bail out time, for public transit, by our banks, financial institutions, media corporations, and unions, federations like (OFL, CLC, CEP, OPSEU, OSSTF etc) the likes of the Toronto Star and other incorporated entities to put up and pay up through a 1% transit tax levied on corporations (private and public) and union organizations including all union federations. 

Elected political party representatives at all three levels of government, for the most part, receive their financial backing from Corporations, Unions and Special Interest groups. It's time they openly commenced being the representative of the public who voted them into office.  

Finally the time for a 1% public transit bailout tax on Corporations and Unions is now as it has been long over due!


Corporate and union transit tax

Contact your Provincial MPP @ http://www.ontla.on.ca/web/members/members_current.do

Contact your Federal MP @ http://www.parl.gc.ca/MembersOfParliament/MainMPsCompleteList.aspx?Language=E&TimePeriod=Current

Contact your Toronto city councillor  @ http://app.toronto.ca/im/council/councillors.jsp


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? 



Sources:
http://news.nationalpost.com/2012/10/13/a-home-grown-solution-to-torontos-transit-funding-woes/










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