Toronto can’t afford to scrap the land transfer tax, says Councillor Mike Del Grande, the budget chair.
While Mayor Rob Ford promised to get rid of the tax on real estate sales — targeting its removal by the end of 2011 — that timetable is not realistic, Del Grande said Tuesday.
The tax, which brought in $274 million in 2010, is needed to fill the initial $774 million hole in next year’s operating budget, he said, stressing the city needs every dollar it can find.
“I personally don’t think it’s practical (to scrap the tax) this year,” Del Grande said. “That’s my best recommendation to the administration.”
The budget chair was responding to claims by Councillor Gord Perks, a stalwart in the former David Miller administration, that Ford is exaggerating the city’s financial problems.
Perks pointed to a staff report presented Tuesday that revealed there’s an extra $88 million left over from last year. He said that money, plus a modest increase in 2012 property taxes, TTC fares and other user fees would cut the hole in half.
“Mayor Ford has been trying to scare people into being willing to cut services they count on,” he said. “We don’t need to throw out any major services.”
“This is the mayor that’s crying wolf and he’s hoping that we’re all terrified sheep. I’m not going to be one of the terrified sheep, and from what I hear from my constituents, they don’t want to be terrified either.”
Del Grande responded to Perks’ comments by noting the city’s net debt is currently $2.5 billion and is projected to grow to $4.3 billion by the end of 2014.
Principal and interest payments on the debt are running at $450 million — making it the third biggest expense for the average taxpayer behind the cost of police and subsidizing transit.
Those payments are expected to rise in the years ahead, finance staff told the budget committee.
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Source: Toronto Star
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