Toronto: The Canadian Taxpayers Federation (CTF) reacted to the release today of a report by the Canadian Urban Institute that businesses are leaving Toronto's downtown core and moving out of the city to lower-tax jurisdictions.

"This report confirms what businesspeople and taxpayers have been saying for years. High business taxes are killing jobs in Toronto," said CTF Ontario director Tasha Kheiriddin.

The report reveals that Toronto's commercial tax rates are 3.2 times higher than in Markham, 2.7 times higher than in Mississauga, and 2.4 times higher than in Oakville. From 1997 - 2005, 80% of all new "Class A" office space in the GTA has been built in municipalities outside of Toronto, compared to 20% from 1960-1997. According to the report, until and unless the province imposes a uniform property tax rate for the GTA, "the City should take immediate steps to accelerate the rollback of commercial property taxes in order to improve the viability of the Toronto office market."

In response, cited in today's Globe and Mail, Toronto Mayor David Miller said that he would not implement tax cuts for businesses. He will continue instead to spend money on public transit, arts and culture and cleaning up the city's streets and parks, "all of which attract business too," according to the Mayor.

"The Mayor is on the wrong track," replied Kheiriddin. "Instead of spending hundreds of millions of tax dollars on his 'Clean and Beautiful City Initiative,' he should focus on what really makes this city work. It's not new street signs on Yonge Street, tidier parks, or more workers cutting grass for $17.45 an hour. It's ensuring that the private sector can flourish and create jobs for Torontonians. That means tax cuts for business so they don't leave and take jobs with them."