• John Tory promises a partial property tax freeze and no road tolls
   
• David Miller's high tax plan for the GTA and crumbling economic plan

Toronto: Canadian Taxpayers Federation (CTF) Ontario Director, John Williamson, today weighed into Toronto's mayoralty campaign in light of the province's $5.6-billion deficit. "Yesterday at the Economic Club of Toronto, Premier McGuinty indicated that his government's top priority is the elimination of the province's $5.6-billion deficit," said Mr. Williamson. "The Liberal spending promises, including money for transit, will not be fulfilled anytime soon. Toronto will need to fix its budget problems without help from Queen's Park."

The two leading contenders running to be Toronto's next mayor - John Tory and David Miller - have plans they say will solve Toronto's fiscal challenge. The City of Toronto faces a $200-million plus shortfall next year, and this will require the next mayor to make difficult choices and prioritize government operations.

"Our organization is pleased to note that Mr. Tory has made protecting taxpayers from multi-year tax hikes a top priority. Today, he signed a pledge to limit any property tax hike in his first year to no more than the rate of inflation, and to freeze taxes in years two and three of his mandate. Moreover, he will not introduce road tolls and will review the City budget line-by-line," said Williamson. "We would have preferred a three-year tax freeze and the elimination of the City's $50-million grants budget, but Mr. Tory does have a levelheaded plan and is telling voters that he will not run again if he breaks his promise. He also knows more taxes are not the right answer to Toronto's problems, and solutions must be found without fleecing taxpayers."

"Regrettably the same cannot be said about Mr. Miller. His fiscal plan says he 'will hold the line on taxes at or below the rate of inflation,'" noted Williamson. "If taxpayers decode candidate Miller's Orwellian-doublespeak it is clear property taxes will rise each and every year if he is elected. This is hardly what taxpayers call responsible or the straight talk they expect from politicians."

Mr. Miller's plan calls for $85.5-million in higher residential and business property taxes as well as higher user fees. In addition, it outlines nearly $300-million he wants from Ottawa and the province. Some of the money, for example gas tax sharing is smart policy, but the other levels of government are unlikely to agree to his additional proposals, like exempting the City from paying the GST or the provincial sales tax. "Mr. Miller's fiscal plan is entirely dependent on taxes going up and on dollars coming from other governments," said Williamson. "Without that help Mr. Miller will either be forced to raises taxes well above the rate of inflation or cut services. He has no backup plan to protect taxpayers already struggling under sky-high property taxes."

"Under the rosiest economic picture, the province will not be in a position to help municipalities until 2006," concluded Williamson. "That is the last year of the next mayor' mandate. Help for Toronto is a ways off yet."