Gas Tax Honesty Day Report
TORONTO: The Canadian Taxpayers Federation (CTF) today launched its 4th annual Gas Tax Honesty Day (GTHD) from the seat of government of Canada's largest city at Toronto City Hall.
At a morning news conference attended by several Toronto city councilors, the CTF released its 4th annual GTHD report entitled Filling the Infrastructure Gap.
The report's key recommendations include:
Gas taxes, the cities debate and Mayor Mel
"In four short years we've been able to shift public opinion away from a focus on big oil to the real gougers at the pumps; our senior governments generally, but specifically, Ottawa," said CTF federal director Walter Robinson. "Gas taxes are a user fee that should be plowed back into infrastructure. We trust that our report will be seen as a valuable and constructive contribution to the emerging debate about the state and future of Canada's urban regions."
"This report from the CTF underscores our campaign to find new, sustainable sources of revenue for Canada's major cities," said Toronto Mayor Mel Lastman. "The federal government has taken long enough; its time for them to start giving some back."
Municipal Roadway Trust
"Last year Ottawa raked in over $4.8 billion in gas and excise tax revenues but only returned a paltry 2.4% or $113 million in the form of transfers for provincial roadway development. And even if all infrastructure funding mechanisms are added in, Ottawa is still returning less than 20% of its tax take from motorists at the pumps," added Robinson.
The CTF proposes a Municipal Roadway Trust program that would devote $2.2 billion of gas tax revenues annually for three years (renewable by Parliament) for urban regions to draw upon for roadway expenditures. This would allow municipalities to redirect more of their current budgets to other priorities such as transit and waterworks initiatives.
Accountability would be maintained with annual reports from municipalities, verifiable by the federal Auditor General with opportunity for provincial piggybacking efforts.
"Our model provides immediate cash for stretched urban regions and provides federal accountability for spending of federal tax dollars. Annual oversight, and penalties if appropriate, would ensure that municipal governments would build real infrastructure instead of bocce ball courts, canoe museums and riverfront fountains," asserted Robinson.
Government Gas Gouging
"Last year Canadian motorists paid an average of 42% in taxes each time they filled up at the pumps. As we approach another May long-weekend, taxpayers should be aware that the biggest gas price gougers are the federal and provincial governments," noted Robinson. "Gas tax honesty day blows the whistle on this tax grab and serves to remind politicians that taxes should be used for public goods and services - like the infrastructure needs in our major urban centres."
End the deficit surcharge - now
"In 1995, Paul Martin slapped an extra 1.5 cent/litre tax at the pumps to help fight the deficit. But we haven't had a deficit for five years. This 1.5 cent tax should be axed," added Robinson. "Canadians continue to pay tax on tax at the pumps with GST charged on top of everything else. This double-dipping taxation is a blatant cash grab; Ottawa should end it immediately."
"After devoting half of gas tax revenues to the Municipal Roadway Trust and cutting the 1.5 cent/litre charge, Ottawa is still left with a 3.5 cent/litre take at the pumps. Given the surpluses that the feds are now running, it's pretty clear that the remainder should be cut as well," concluded Robinson. "With continued pressure, we can force Ottawa to help our cities and also lower gas taxes."
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