Hike GST 1% to pay for infrastructure, says head of Ontario municipalities
Hike the GST to pay for municipal infrastructure, says the president of the Association of Municipalities of Ontario.
Tecumseh, Ont., Mayor Gary McNamara told CBC Windsor's Afternoon Drive host Bob Steele it's one of few ways to raise money to pay for much-needed municipal infrastructure.
"If we are going to be dealing with the infrastructure deficit that we have in this country, the only way we're going to do it is by finding new and creative ways," McNamara said. "What's the alternative? Raising property taxes.
"At AMO, we've done our homework. If nothing is done and everything is status quo ... I've got to raise property tax between eight and 10 per cent every year for the next 10 years."
When asked directly if a tax hike would be popular among voters, McNamara said the proposition of a tax hike "would start a discussion."
The Green Party of Canada on the weekend promised to offer some financial assistance.
Its platform plank for municipalities unveiled June 7 promises to commit one point of the existing GST to municipal needs and create an infrastructure bank but it does not support raising the GST.
The Green Party says Canada's infrastructure deficit is $123 billion. McNamara says it's $130 billion.
The Green Party spokesman Julian Morelli claims committing one point of the GST to infrastructure would generate $6.4 billion for municipal infrastructure upgrades.
McNamara hopes other parties will address the issue in the federal campaign expected this fall.
"We have to get away from the competitive lottery process of [federal] grants. We need a more formula-based program similar to the gas tax," McNamara said.
Through the gas tax fund, each municipality receives a specified number of dollars for capital projects.
Last July, Finance Minister Joe Oliver announced the federal government would make the federal gas tax fund a permanent fixture for supporting infrastructure projects in Ontario municipalities.
Oliver said at the time, $3.87 billion will flow directly to municipalities in Ontario over the next five years. The finance minister called it steady, predictable funding.
Speaking at the Annual Federation Of Canadian Municipalities conference in Edmonton this week, which is where McNamara and 1,700 delegates were, NDP Leader Tom Mulcair said his party would increase the municipal cut of the federal gas tax by $1.5 billion a year.