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Barber: Hazel Takes Up Charge for Municipal Funding

unimaginative2

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Hazel's 5-per-cent solution – just try and stop her

JOHN BARBER

From Thursday's Globe and Mail

November 8, 2007 at 4:03 AM EST

Mayor Hazel McCallion slapped a surprise 5-per-cent tax hike on Mississauga residents and businesses yesterday, claiming federal neglect has forced her to "offset" recent tax cuts with a new levy to pay for infrastructure.

Her message for Mississaugans expecting federal tax cuts is blunt: "I tell you, we are going to take a hunk of it away."

Added to an already expected tax increase of about 4 per cent, the 5-per-cent "infrastructure levy" will increase 2008 tax bills in Mississauga by 9 per cent, likely making it the most heavily taxed municipality in Southern Ontario.

In 2008, the surprise tax will cost people who live and do business in Mississauga twice as much as Toronto Mayor David Miller's controversial tax package - about $160 per capita versus $80 in Toronto.

In justifying the new levy, Ms. McCallion invited her constituents to blame federal Finance Minister Jim Flaherty for his failure to fund municipal infrastructure in his recent economic statement. "He's arrogant," she told the Mississauga News. "At least he could have given us a piece of the pie."

Failing that, Ms. McCallion boldly stepped up and carved a slice of it herself, creating the new levy "to offset what the federal government hasn't done."

Her move will likely encourage other Ontario municipalities to raise their own taxes before memory of the federal cuts fades.

The second thrust of Ms. McCallion's new strategy is to make sure that doesn't happen any time soon. "I tell you, I'm taking on Mr. Flaherty," she said, simultaneously announcing a nationwide publicity campaign to promote the municipal cause - with her at the helm.

The new campaign, called Cities NOW!, takes up where Mr. Miller's One Cent Now campaign for a share of sales taxes failed. "Mayor Miller has agreed I should lead the cause," Ms. McCallion said, rightly assuming that nobody will dare call her wasteful and inefficient.

"I challenge Harper or Flaherty or anybody to say how they could do it better," Ms. McCallion said, singling out the latter for special abuse. "What can we expect? When he was minister of finance in Ontario he gave us the gears, downloaded social housing, took away all of our transit. Do you expect anything different from him when he's in Ottawa? I'd love to challenge him to a public debate!"

"I'm not fighting for Mississauga, I'm fighting for the municipalities of Canada," she said.

While Mr. Miller could only envy the clawback "rationale" Ms. McCallion used to justify her new levy - and the fact that she accomplished it in a single stroke, without a whiff of consultation or debate - he welcomed the Mississauga mayor's new national campaign. "We're all in exactly the same position," he said. "This isn't about Toronto, it's about every single city in Canada."

The thinking in Toronto is that Ms. McCallion, like Nixon in China, is uniquely well positioned to carry the day. "When the City of Toronto says something, they criticize Toronto and say it's badly managed, which is utter nonsense," Mr. Miller said. But now even can-do Mississauga is suffering.

"Minister Flaherty may try to marginalize Hazel McCallion. Good luck."

As one of the world's longest-serving, most consistently popular and famously effective mayors, Ms. McCallion has been the single most powerful influence on urban policy at Queen's Park for decades. Both Liberal and Conservative governments cut their cloth to her specifications, rather than risking public confrontation. Mr. Flaherty, who represents a similar suburban constituency, knows that well.

Not only is she threatening the minority Conservatives where they live, with a weapon they fear, she just engineered a brazen tax grab of her own - one for which they, not her, will pay the political price. Nobody can beat this amazing woman. They should give up now.
 
Time for the Alliance Party Members to start hiding under thier desks.

Hazel sure knows how to give these assholes the gears!!
 
Cities Now!

Shit, she's serious. Mississauga already has a page running on the city's website.

I recommend the "Federal Government's Priorities Are Wrong" slide presentation! Hot stuff!

http://www.mississauga.ca/file/COM/Cities_now_presentation.pdf

cities_now.gif


Louroz
 
Good on Hazel. Miller tried to railroad taxes and we all saw what happened. Makes me wonder what the effect of having a strong media presence in Toronto had. Maybe if Hazel had implemented her taxes first we'd have seen things play out differently.

The new campaign, called Cities NOW!, takes up where Mr. Miller's One Cent Now campaign for a share of sales taxes failed. "Mayor Miller has agreed I should lead the cause," Ms. McCallion said, rightly assuming that nobody will dare call her wasteful and inefficient.

If this is true, it's excellent and should have happened right from the start. Someone ship her and a camera crew to Ottawa to go and start knocking on doors.
 
The trouble is that we have a federal government banking on the popularity of tax cuts, a provincial government that has boxed itself into a corner by promising to not introduce any new taxes, and a city that is increasing every tax it can. It is going to be difficult for city governments to convince people to give up their underwhelming tax cut in order to provide money to city governments who are believed to be taxing too much.
 
Time for the Alliance Party Members to start hiding under thier desks.
Hazel sure knows how to give these assholes the gears!!

I doubt it when recent polling says support for tax cuts is high.

November 08, 2007
THE CANADIAN PRESS

OTTAWA – A new poll suggests the vast majority of Canadians like the Conservative government's mini-budget – especially the income-tax cuts. But it's not clear if that will translate into more votes for the Tories.

The Canadian Press Harris-Decima poll – conducted in the three days after the Halloween economic update – found that 83 per cent of Canadians surveyed said they supported the income tax cuts.

Seventy-six per cent approved of reducing the GST by one percentage point.

The impact on Conservative fortunes was significant, but not massive, according to the numbers.

One in four Canadians said the tax cuts would make them more likely to vote Conservative, while 14 per cent said it would have the opposite effect.
 
Go Hazel. She has a good deal more credibility than Miller on this issue, as noted. "One cent of the GST" was doomed from the start.

Harper was recently in B.C. signing an infrastructure deal with the province, and I think it may set the stage for something wider.
 
Seventy-six per cent approved of reducing the GST by one percentage point.

Yeah, but that's sort of a "duh" poll question. "Do you want to pay less taxes?" "Uh, sure."

If they'd asked whether people would rather have a one-cent cut to sales tax, or a new subway extension or whatever, I think the results would have been very different.

I am also, I confess, totally mystified as to why everyone is gunning for the feds and only the feds on this one. Shouldn't the mayors be putting some kind of pressure on the province to take the tax room, charge the cent back, and finally realise the whole one-cent dream? The net effect would be exactly what they were looking for.
 
Yeah, but that's sort of a "duh" poll question. "Do you want to pay less taxes?" "Uh, sure."

If they'd asked whether people would rather have a one-cent cut to sales tax, or a new subway extension or whatever, I think the results would have been very different.

I am also, I confess, totally mystified as to why everyone is gunning for the feds and only the feds on this one. Shouldn't the mayors be putting some kind of pressure on the province to take the tax room, charge the cent back, and finally realise the whole one-cent dream? The net effect would be exactly what they were looking for.



Concerning your second point, I'd bet more than a few people would answer that it is the city that should be paying for its subway extension, and not the federal government. They want their pizza money back.

The reason why people are "gunning for the feds" is because of the massive surpluses. City mayors have already gone to the Premier on a number of occasions. With the exception of Alberta, no province is pulling in massive surpluses like the federal government, and provincial governments are already (and always have been) directly involved with many city issues.
 
The question is - would Hazel or any 905 belt politician quietly can their campaign of discontent if the Feds dangle goodies in front of them (and only them)? Divide and conquer can be rather effective a strategy...

Also keep in mind - it isn't like Harper et al. is counting on the 905 to deliever them the majority they so seek...

AoD
 
The reason why people are "gunning for the feds" is because of the massive surpluses. City mayors have already gone to the Premier on a number of occasions. With the exception of Alberta, no province is pulling in massive surpluses like the federal government, and provincial governments are already (and always have been) directly involved with many city issues.

Didn't Ontario have $2.3 billion surplus last year? Anyway, point is, a one-time transfer is great, but I'd thought the whole idea was to have a sustainable revenue stream. That's why they were calling for a penny of GST, wasn't it?

Well, the feds cut a penny off the GST. If the province would only step up and charge back the penny in sales tax, we'd have exactly what we asked for. And at no higher taxes than we were paying before.

I understand about the massive federal surplus, even if it seems to me that the province had a massive surplus, too. But that was not what the one-penny campaign was about -- it was about creating a recurring item. Yet now, precisely, when it seems possible, absolutely noone is putting any pressure on McGuinty, who is exactly in a position to realize it.
 
Yes, Ontario has had one significant surplus, not over a decade of massive surpluses. Proportionally speaking, Ontario's surplus comes nowhere near matching many of the recent federal government surpluses. But this is not just a case of a surplus, but what can be done with part of that surplus.

Remember that the federal government arrived, in part, at this position of having massive surpluses by cutting money transferred to the provinces. All the cities are doing now is asking for a relatively small amount back for a directed investment in the infrastructure of the city and the country.
 
I saw her interview this morning as I was getting ready to commute out of the city; I really did like the straight message, and the reality that tax cuts at the federal level mean more tax at the muni. Good on her!
 

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