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Morning Brew: Toronto Sales Tax, TTC Fare Hike, Pro Athlete H1N1 Vaccinations, Gun Registry on Thin Ice, Housing Market Spike

Posted by Jerrold Litwinenko / November 5, 2009

fallen leaves torontoPhoto: "Carpet of Fallen Leaves" by Bobcatnorth, member of the blogTO Flickr pool.

What's happening in the GTA (and sometimes beyond):

Given our dire financial state, should Toronto introduce a municipal sales tax? Other large cities in North America do it, so perhaps we should consider it. The idea of paying more taxes for goods and services when we're already taxed to the extent we are really hurts, but it could be a solution to some of our biggest problems (like our grossly underfunded transit system).

We expected a TTC fare hike to be proposed, but I don't think anyone thought that the monthly Metropass would go from $109 to $126 (an almost 16% hike). Doing the math reveals that Metropass holders would have to ride the rocket a minimum of twice daily on 6 days of the week, in order to make the per ride fare less than the cost of tokens. Where's the savings for the most frequent transit users?

Toronto Maple Leafs and Toronto Raptors players got H1N! flu vaccinations from their team doctors. But are they in high risk groups? (I know they're high risk for not making the playoffs again, but that doesn't count.) Should they have had to wait like the rest of us, especially given the inevitable shortage of vaccine supply?

It looks like the controversial and expensive gun registry program may get axed. Is killing it the answer, given all the resources that have already gone into it? I'm not sure. But I am quite certain that many police officers in Toronto and beyond won't be happy if it ends like this.

The housing market in the Greater Toronto Area saw a huge spike in October, with sales up 64%, and prices up 20%. Many signs are pointing to overall economic recovery, and many for sale signs are pointing to sold properties.

And on the money front, the Ontario government is looking into better teaching our youngsters about personal finance before the credit card companies given them a literal run for their money. Education on financial matters may be introduced into the public school curriculum as early (or as late) as in 2011.

Discussion

30 Comments

Joel M / November 5, 2009 at 07:58 am
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Hopefully the Metropass price comes down a bit. Although people may want to consider subscribing to the MDP Discount program, which will be $116 per month.

For the Metropass to be worthwhile you've always needed to take a very large amount of trips per month, even before this fare hike. With the token increase a person can commute to work both ways, 5 days a week with tokens for about $110.

Comparing TTC's fares to other transit systems in North America is tough to do because most have zone fares. New York City doesn't, and it's 30 day pass is $89 US per month, however it is currently experiencing a financial crisis and is drastically cutting service. The TTC however is at the start of its biggest expansion in history, so some fare increases should be anticipated, although again it appears the metropass is taking a disproportionate hit.

To compare cash fare: Mississauga, Oakville and York Region's transit systems are all currently $3.00 or more, and Durham Region's fare is $2.90.
mr hate / November 5, 2009 at 08:10 am
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Pro sports teams are definitely high risk since they're constantly traveling through airports, riding on planes with recycled air and coming into contact with lots of people in a lot of different cities. So yeah, they should be getting the shots sooner than a grandmother in Sudbury.
Xavier / November 5, 2009 at 08:37 am
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Can we get Dalton to take the money class? He doesn't have a clue about budgeting.

As for a Toronto Sales tax. Brilliant, lets enough more people to go to the 905 to do their shopping
Jerrold replying to a comment from mr hate / November 5, 2009 at 08:46 am
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I travel for work a lot and am exposed to lots of people too. But that doesn't put me into one of the declared high risk categories.
mr hate replying to a comment from Jerrold / November 5, 2009 at 08:55 am
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Yeah well if that's your life then you should be given priority too.
Josh / November 5, 2009 at 08:57 am
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The city should grow a pair and REALLY trim the fat from city expenses, (ie: bloated workforce)
Avoid a municipal tax as Xavier said because many people would travel to the 905 or elsewhere for their purchases. The city needs to live within it's means. it's just that simple.
Ben H / November 5, 2009 at 09:03 am
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Sorry to call out your math on the fare hike, but you've got to account for the fact that the metropass is tax deductible now. At the minimum tax rate of 21% (15 federal, 6.05 provincial) it works out to 40 trips a month to make it worthwhile.

For anyone in a higher tax bracket it would pay back even faster.

I have to agree though, 16% is a bit much.
PotatosAllAround / November 5, 2009 at 09:07 am
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Potato Salad!
cliff / November 5, 2009 at 09:09 am
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"(I know they're high risk for not making the playoffs again, but that doesn't count.) "

HA!
Angus / November 5, 2009 at 09:24 am
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People paying cash fare on the TTC subsidize the Metropass holders, good thing they got smaller percent increases this time.
picard102 / November 5, 2009 at 09:34 am
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Didn't they buy their own supply of the vaccine? Why is that a problem?

As for a new tax, great way to send people to the 905.
mr hate / November 5, 2009 at 09:38 am
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How about they start charging interest on people's unpaid tickets and not renew licenses of people who don't pay?

There's 200 million bucks right there sitting uncollected because the city is f*cking stupid.
mikeb / November 5, 2009 at 09:45 am
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I'm surprised to see Shelley Carroll propose a city sales tax. She is pretty brave given that retailors in her area would be hit harder than most when those on the outer wards of Toronto move their shopping to the other side of Steeles. Why spend $150 a week grocery shopping for a family of four on Finch, when with a 2% city sales tax of you can save around $150 a year driving a few minutes north. Unless there's a uniform tax across the GTA or province, a city sales tax is unwise.
Me / November 5, 2009 at 10:14 am
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Or just raise property taxes so Toronto pays what the 905 does in that regard (for less service and less infrastructure, I might add).
Christopher Hylarides / November 5, 2009 at 10:19 am
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I'm 90% sure the city doesn't have the authority to do this without the explicit backing of the province, something that is unlikely. As earlier posts have shown, we need budget cuts before new taxes. The current council has added $1.5 billion in debt, increased spending by half a billion a year since 2000, and all we're going to get is some preliminary transit city buildouts. On top of this they are expanding the workforce when revenue is stagnant. We have too many workers making too much money and have too generous benefits. Business expansion is low already because they are taxed more heavily than our immediate neighbours.

They're are not being efficient at all, even for a government. Miller deserves a good chunk of the blame, but it mostly rests on council as a whole.
Mike W replying to a comment from mr hate / November 5, 2009 at 10:21 am
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Yes to this. People get away not paying their parking tickets, especially the smaller fines, like it's optional.

This is a perfect example of how the system is gamed.
Ryan L. / November 5, 2009 at 10:29 am
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It would be nice if the city could somehow get its share of tax from the 905 commuters. 2.4 Million people commute into the city and those 2.4 million people are using city services that they are not fully paying for while paying taxes in their home regions of York or Oshawa and not fully using the services those regions provide.

As a result, those regions can provide better services than the city with a proportionally larger budget and not be forced to nickel and dime its residents at every opportunity like the city is forced to.

I doubt the 905 would willingly give up some of its tax money to Toronto, so I say make the Gardiner and 404 Toll Highways. Up the price of GO Transit into the core (but still keep the relative increase lower than the highway tolls) and give exemptions to city residents.
Peter / November 5, 2009 at 10:32 am
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I have no problem with paying $3 for a TTC cash fare or $2.50 per token when buying in bulk.

But the Metropass, by design, should be providing savings to people who commute, just as monthly passes in other cities do; yet it still won't.

I don't commute by TTC every day, but if at some point in the future I do, I'll more likely buy tokens than a pass.
potatooo replying to a comment from PotatosAllAround / November 5, 2009 at 10:44 am
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yum!
Kim B / November 5, 2009 at 11:12 am
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Seeing the price of the Metropass on the MDP plan rise above $100 a month was the deciding factor to me cancelling my pass yesterday. Even with an occasional extra ride during the month it will be cheaper for me to pay a token per ride than to continue with my metropass. The "convenience" of a Metropass is just too expensive.
cocoa / November 5, 2009 at 11:50 am
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Also now's the time to bring back those token-holders. Lots of people will be needing them soon!
Mr. Happy replying to a comment from PotatosAllAround / November 5, 2009 at 11:54 am
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Mr. Happy is getting hungry!!
RBeezy replying to a comment from mr hate / November 5, 2009 at 12:27 pm
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I totally agree. Who's more high risk than a person who travels frequently and who is in physical contact and proximity to thousands of people in any given week?

Give the athletes the H1N1 shot first. And in the case of the Leafs, give them a shot of Heart too.
Abdullah Abdullavich / November 5, 2009 at 12:29 pm
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Naaaiiice foto !
mr. hood / November 5, 2009 at 12:35 pm
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giving the h1n1 shot to pro sports athletes makes perfect sense..

they are constantly traveling on planes, they are mixing it up with many people, and lets not forget about their off court involvment with kid programs at schools and youth centres...

this makes perfect sense to me, id rather have a team without the swine flu and everyone playing at regular fitness levels, than half the team quarantined and us being barely competitive(because we're already barely competitive already)
Kenny / November 5, 2009 at 12:36 pm
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I live rright beside the Mississauaga border and I already do some of my shopping over there just to avoid the 5c plastic bag fee, if I'm willing to cheap out on that, then you bet your ass I'm gonna take ALL my shopping needs to Peel Region if TO decides to implement a sales tax. How much you wanna bet there are thousands more like me who's willing to travel out of Metro to skip on that?

As for the TTC, yeesh, another reason why TO sucks balls. Let's make the citizens (especially those who can barely afford it already) pay more and give them lthe same, if not shittier, service.
Mark Dowling replying to a comment from Ben H / November 5, 2009 at 12:41 pm
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Ben H is wrong. The tax *credit* is only federal (15pc). There is no provincial relief.
Mark Dowling replying to a comment from Ben H / November 5, 2009 at 12:47 pm
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I think the most hilarious idea the City has proposed is to make you pay a tax - to register to pay your taxes?

Apparently Ottawa does it. Like Ottawa City Council is worth emulating - the guys who have to pay Siemens millions to break a light rail contract.
tbomb / November 5, 2009 at 01:17 pm
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i understand the reasoning for administering flu shots to the pro athletes, but i just wonder how selectively broad the criteria are for 'high risk.'

i mean, i'm a food service worker who rides public transit everyday. doesn't that mean i'm also in close proximity to hundreds of potential carriers everyday?
jeff / November 5, 2009 at 04:07 pm
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TTC is, as usual, avoiding the real problem(s) NOT addressing staffing, union, administrative, political issues that are historic.

They are badly managed and refuse to change!

And the city councillors that get their mitts into it are in breach of one of the founding conditions of the TTC many decades ago, besides the fact they demonstrate themselves they are useless at managing funds in a responsible manner.

Are there better run, larger, more modern examples worldwide? Absolutely! And our guys have all visited them more than once but ignore making changes.

My suggestion... vote them all out of office and demand a massive reorg of TTC from the Chair down with a lot of staff replacements. Unions included. Then do the same throughout City Hall and all of its associated divisions.

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