News   Apr 18, 2024
 704     0 
News   Apr 18, 2024
 6.3K     2 
News   Apr 18, 2024
 2.5K     4 

2007 Ontario Election: : McGuinty tells PM he wants 1¢ of GST

Hypnotoad

Senior Member
Member Bio
Joined
Jun 26, 2007
Messages
1,205
Reaction score
5
Location
Downtown Toronto
McGuinty tells PM he wants 1¢ of GST



`Turning point' in fight for GST share
Sep 29, 2007 04:30 AM
Robert Benzie

Queen's Park Bureau Chief
Premier Dalton McGuinty has sent a letter to Prime Minister Stephen Harper demanding that one percentage point of the GST be given to Toronto and other Ontario cities faced with massive budget problems, the Star has learned.
In the wake of Harper's Thursday announcement of a $13.8 billion federal budget surplus, McGuinty wrote a three-page letter to the Prime Minister urging Ottawa to help Ontario's cash-strapped municipalities with new funding for infrastructure and public transit.
"By providing the equivalent of one cent of the Goods and Services Tax, the federal government would add more than $1.9 billion per year to the financial foundations of municipalities large and small across Ontario," the premier wrote.
"The City of Toronto would receive an additional $400 million a year from this initiative, helping them address major transit funding pressures that the Toronto Transit Commission is currently facing," McGuinty continued.
Toronto Mayor David Miller has been pushing for a one cent share of the GST ever since he was re-elected last November.
McGuinty wrote, "Communities large and small are asking the federal government for this support, including Toronto, Ottawa, Fort Erie, North Bay, Oshawa and many others."
His letter comes as two public opinion polls were released, one showing a tight race and another showing a Liberal majority after the election on Oct. 10.
An Environics poll gave the Liberals 39 per cent of the decided vote, compared with 34 per cent for the Tories, 20 per cent for the NDP, 7 per cent for the Green party, and 21 per cent undecided.
An Ipsos-Reid poll released last night projected a Liberal majority, giving the party 43 per cent of the decided vote, the Tories 33 per cent, the NDP 17 per cent and the Greens 6 per cent.

The Liberals now have 67 of the 103 seats in the Legislature, the Tories 25, and the NDP 10. There is one vacancy. Four additional seats are up for grabs on Oct. 10.
McGuinty also used his pitch to Harper to request federal money for major transit projects already proposed by the province and municipalities, but yet to be fully funded.
"We would also like to urge the federal government to move immediately to release the funds needed to begin building the Spadina subway extension and the Mississauga Transitway and Brampton AcceleRide projects," wrote McGuinty.
"And we would like the federal government to commit to your one-third share of our historic $17.5 billion MoveOntario 2020 plan – $6 billion," he added, noting that by 2011, Queen's Park will have increased annual funding to municipalities by $2.8 billion compared to 2003.
Although Harper and federal Finance Minister Jim Flaherty reduced the GST from 7 per cent to 6 per cent – and promise to eventually slash it to 5 per cent – they have resisted calls from Miller and others for a share of the tax.
On Thursday, the prime minister and Flaherty, in Toronto to announce a surplus $4 billion greater than forecast, insisted Ottawa is already doing enough for the GTA.
Last June in Calgary, federal Liberal Leader Stéphane Dion said he opposed Miller's "One Cent Now" campaign for the same reason as he was against Harper's GST cut.
Dion told reporters at the Federation of Canadian Municipalities meeting that Ottawa needs the money to reduce poverty.
"The Prime Minister is committed to decrease the GST by one additional point – that's $5.5 billion. I will use it to fight poverty, and I will work with municipalities on that," he said at the time.
McGuinty reminded Harper in his letter that "a strong Ontario is fundamental to a strong Canada."
"Working together, we have made progress on behalf of Ontario families, specifically on the funding of supports for newcomers to Ontario, and per capita funding for health care," wrote the premier.
"But there is much more to be done – not just in the area of federal-provincial relations, but in federal-municipal relations," the letter continues.
"Just as Ontario is the economic engine of our country, our cities are the economic engine of our province. Our municipalities face tremendous pressures and that, in turn, is placing pressure on property taxpayers."

-----

About time Urban issues started to make their way into this campaign. Probably all talk not action. But it is funny that McGuinty suddenly supports Miller's GST plan.
 
that be political suicide.

Its a good policy but if i was running for office, i would not be promising to make things better by increasing taxes.

You first win a a sizable majority and then flip flop...
 
I know that but if McGinty wants this for Ontario and the Feds won't budge there's no reason that he couldn't accomplish the exact same thing.

Historically the Feds won't budge for Toronto no matter what party is in power. But raising the PST won't get it done. Directing 1 cent of PST would be an option but that would take away from the already stressed provincial budget that funds healthcare and education. What is needed is something that goes far beyond GST. What is needed is a fixed federal funding formula to directly provide urban services to large municipalities. Constitution be-damned. Federalism is broken and the big cities are the victims.

Speaking of which, perhaps the first step to solving the crisis will be for any federal or provincial overnment to stop using the words 'community' interchangably with 'city'. They are not the same thing.
 
No add a penny to the PST. GST went from 7 to 6 so PST goes from 8 to 9. Net change is zero to the taxpayers but the cities gain 1.

it's not a terrible idea but i think it doesn't have to come to this. the pie is big enough, those obese bastards just gotta throw us a bigger slice. momma needs to bring out the wooden spoon.
 
I know that but if McGinty wants this for Ontario and the Feds won't budge there's no reason that he couldn't accomplish the exact same thing.

One can presume that this approach would result in a federal policy, and those tend to apply across the country. That being said, Ontario has a legitimate claim to higher than average levels of federal taxation.
 
The GST and PST are materially different taxes. GST is a very efficient (least bad) tax, while the PST tends to have a much larger 'footprint' on the economy than the revenue it raises. This is why we should harmonise the PST with the GST.

If you're curious, there are analyses available on the net...
 

Back
Top