Wednesday, July 25, 2007

Fiscal Imbalances

If I was still on the word of the day kick, this would have been "irony".

Toronto Star, No bailout for Toronto, premier says

Toronto councillors need to make "difficult decisions" like increasing taxes because there are no imminent plans to bail out the city, Premier Dalton McGuinty warned yesterday – a comment that prompted the first signals of shifting ground at city hall.

National Post, Do responsible thing: tax, Premier scolds Toronto

Toronto city council should use its new taxing powers before coming cap-in-hand to the province for more money, Ontario Premier Dalton McGuinty said yesterday.

Meanwhile, the whole Ontario - federal fiscal imbalance thing is completely different.

Yay, for your Ontario Liberals!

1 comment:

Canajun said...

Successive governments - federal and provincial, Conservative and Liberal - have, over the past several years, balanced their books (or indeed generated surpluses) by downloading responsibilities (and costs) to the municipalities. However they did not reduce the tax burdens accordingly. This is an issue that will not go away as long as governments are allowed to levy taxes that are not directly related to providing services that level of government is expected to provide. Ultimately I expect we'll end up in a situation where municipalities will be levying some sort of income tax and higher levels of government will be forced by the electorate to reduce taxes considerably to offset. At the end of the day it will just become a matter of who you pay.