A 1 % New Sales Tax is a Non Solution that Leaves a 99 % Transit Funding Shortfall.

A 1 % ( one)sales tax increase would barley accomplish enough to pay for the administration of such a new Toronto sales tax and most likely a tax that would increase on annually until this new Transit Toronto Sales Tax reached 5 % or 8 %  on top of the existing harmonized GST of 13 %!

Thus realistically there is the possibility that not only Torontonians but all Ontario residents, tourists and a business could be paying 20% or more in a few short years for a combined new Toronto Transit Sales Tax and existing harmonized GST.

We do not need new taxes, rather better management of existing revenues and expenditures by our politicians and non-elected technocrats and bureaucrats.  

What is urgently required is a guaranteed lasting and meaningful funding commitment to Toronto Transit, the largest and most used public city transit system in Canada, from both the federal and provincial governments that annually transfers 25% (twenty five percent) from existing fuel taxes presently collected by these two levels of governments on GAS, DIESEL, and OIL and amend the current Gas Tax Fund Agreement between the provincial and federal governments.   

    NO NEW

Info Up Date

TABLE 2.12 Summary of Medium-Term Outlook ($ Billions)
Revenue	Interim 2011–12	Plan 2012–13	Outlook
			2013–14	2014–15
Taxation Revenue	75.2	78.8	81.1	84.7
Personal Income Tax	24.2	25.8	27.2	28.7
Sales Tax	20.9	21.1	22.1	23.3
Corporations Tax	9.4	10.8	10.2	10.5
Ontario Health Premium	2.9	3.1	3.3	3.4
Education Property Tax	5.6	5.6	5.7	5.7
All Other Taxes	12.2	12.4	12.6	13.1
Government of Canada	21.4	21.8	23.0	23.5
Income from Government Business Enterprises	4.4	4.1	4.4	5.3
Other Non-Tax Revenue	8.3	7.6	7.6	7.5
Total Revenue	109.3	112.2	116.1	121.

Proposed revenue possibilities are:

Revenue source	Nominal rate	GTHA annual revenue
Personal income tax increase	1%	$1.4 billion
Sales tax	1%	$1.3 billion
Property tax	1%	$90 million
Payroll tax	1%	$500 million
Highway tolls	10 cents/KM	$1.5 billion
Fuel tax	10 cents	$500 million
Vehicle tax	$100	$300 million
Parking levy	$365 per space	$1.08 billion
Land transfer tax	1%	$600 million
Development charges	$5,000 per unit	$200 million

PS. As you can see NO mention or thought of a 1% transit tax on banks, unions or corporation? 

Source:

http://taxpayer.com/sites/default/files/GTHD%20Report%202012.pdf

http://www.amo.on.ca/WCM/AMO/AMO_Content/Gas_Tax/Gas_Tax_Funds.aspx

http://stephenrees.wordpress.com/tag/gas-tax/