Saturday, March 03, 2007

One-cent nonsense

Mayor Miller has ramped up a "new" campaign aimed at getting 1 cent of federal GST for 'cities'. It makes me wonder what they really teach in economics program at Harvard (of which Miller is an alumnus.) This isn't really a new 'show' - but simply rehashed episodes of the old 'New Deal for Toronto' campaign.

OK - its was technically referred to as the 'New Deal for Cities' campaign. In reality, it was and is all about Toronto. No other city in Ontario or Canada has managed to get itself in the financial mess in which we find ourselves. Now the upper levels of government have increased transfers to the municipal layer in the form of allocations of the gasoline tax and exemptions on the GST.

Now has this helped Toronto? No - things are worse. Instead of using the increased transfers to improve the city's finances, the $$$ instead disappeared in an orgy of spending. Toronto's many city halls - yes we have all of them despite being consolidated - are bursting at the seems.

What would happen if the feds granted this latest wish. Well run municipalities would take the money and reduce business taxes. Toronto would just spent it on more bureaucrats.

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