Monday, July 7, 2008

Bad decisions on two levels will raise taxes

Comments on this story (1)

Re:T.O.'s debt balloons $497M in 2007 July 3

Toronto's debt is not the only thing going up. Our taxes are about to take a huge hit due to two bad decisions.

• David Miller's odious Land Transfer Tax was added at the worst possible time. It lowered the values on middle class houses by the 2 per cent his tax added to the sale price of a home. It also made people realize that they were spending well over $50,000 in unrecoverable money to move into such a home, taking into account the land transfer taxes to Dalton McGuinty and Miller, the GST on the money spent on furnishings, movers, realtor fees and all the costs associated with the "economy of moving." A minimum of $50 million of the $300 million Miller budgeted in 2008 revenues from his new tax is now lost. How do you think Miller is going to make it back?

• McGuinty's vote-buying Property Tax Assessment freeze from 2006 ends this summer. Homes will be revaluated for tax purposes to their absolute peak of about a year ago.
What does all this mean? You're going to soon pay at least 20 per cent more in property tax thanks to Miller and McGuinty.

Timing is everything. Miller's tax hike in a slowing capitalist economy was idiotic. That move is about to be repeated by McGuinty. Jean-Pierre Boutros, Toronto

The link with the comment is directly on point. The economy is a balance of interest rates, job creation, media, and the perceived confidence in long term continuation of prosperity. When this confidence is disturbed, not matter how low the interest rates there is a lack of consumer confidence to proceed with big ticket items. David Pylyp

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