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What about a 1% transit tax?

Posted by Derek Flack / October 11, 2012

Toronto Transit Sales TaxOne thing we do quite well in Toronto is talking about transit funding and expansion. Building new infrastructure? Well, that's another story. The latest conversation piece comes courtesy of former mayoral candidate and Women's Post publisher Sarah Thomson, who's calling for a 1% increase in sales tax to fund long-term transit development. Alternately called Unlock the Gridlock or the 1% Solution, the accompanying website appears a bit short on specifics as far as future projects go, though the Star has the campaign pushing for a Downtown Relief Line, which seems logical from my perspective.

The bigger issue is whether or not the simplicity of this idea will have any legs. The Fords are already on record against any special taxes to fund transit, but GTA residents show at least some support for the idea. Perhaps a dedicated campaign will actually change a few minds about the idea in general? It'll be a challenge to raise the funds to make this idea visible enough to make difference, but Thomson is well connected, and that should help get the ball rolling at a very minimum.

Have your say.


Photo by Tony Lea in the blogTO Flickr pool

Discussion

54 Comments

Grandma Glory Hole / October 11, 2012 at 03:11 pm
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One word: TOLLS!

We need a solution now, not in decades to come. Y'all know what the answer is. But, most lamewad-hipster-bibsters are too chicken poop to do anything about it!
alan / October 11, 2012 at 03:17 pm
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i would have voted yes but i know this money would go to the first non-transit project the current administration felt like building / supporting...i have no supporting criteria / documentation, just my gut feeling...
Rob / October 11, 2012 at 03:36 pm
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Who cares.

We all know how this is going to play out. Nada. Zilch. Zero.

Then in two years for the mayoral race, the same conversation will take place, and again, nada, zilch, zero. Then ten years, then twenty. I see no change coming.

This city, since amalgamation, is too toxic and divided to ever come up with ANYTHING long-term that will appease anyone.
Hmmm / October 11, 2012 at 04:01 pm
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Sometimes I'm surprised that public transit in general made it past the brainstorming stage in this city. Even if billions of dollars were handed over / earmarked right now for modernization and expansion of the transit infrastructure, anything that actually gets to the design and planning stage (let alone the construction stage!) will require a new round of funding pleas, because of inflation and rising costs from the number of years that would invariably be allowed to pass by.
TTC Hater / October 11, 2012 at 04:02 pm
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All the 1% tax will do is give the TTC union more movie to make insanely expensive and over-produced commericals.

Getting rid of the TTC union and managment will save the equivilant of a 3% tax.
Me / October 11, 2012 at 04:09 pm
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Leave it to the Left to support more taxes.

MyName / October 11, 2012 at 04:18 pm
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Nope - no more taxes. ENOUGH. Twice a year fare hikes pay for ttc salaries increases, yet the service hasn't changed in the past 10 years, in fact - gone down. TTC union and management could be the problem. Miller couldn't do anything about this monster, lets see what Ford can do.
Squint / October 11, 2012 at 04:18 pm
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No way, I live where I do because I don't need to rely on the awful TTC. With their horrible service, rising fares to pay for awful service, I couldn't stand it so I live close to where I work and everything I need is around me, or I bike when I need to go further.

I don't want to have to pay for a system I don't take and hate. Raise fares to $5 for all I care, put tolls on the highways for people that come out of town. They are the ones that generally congest the city. But don't force people that don't use it to pay for it.
Khristopher / October 11, 2012 at 04:19 pm
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If Karen Stintz couldn't pull it off, neither will Sarah.
Za-Moon-Da replying to a comment from Me / October 11, 2012 at 04:19 pm
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And how else would you suggest the city raise funds? Not as if the city is a publicly listed company with endless streams of capital. Just stand up and shake your head. I feel a few things might not be in their right place.
mark / October 11, 2012 at 04:26 pm
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Charge the users. Drivers pay the gas tax. Transit users should pay a 'transit tax'. Charge $5 a ride if needed.
the lemur / October 11, 2012 at 04:28 pm
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My answer is a qualified 'no'.

There is probably not enough support for a new tax and 1% is not enough to make the cost of administering it worthwhile.

Ford doesn't want to suggest a new tax at the expense of his electoral support (not that he has any other real ideas for transit funding anyway).

What we could do, however, is take some or all of the existing revenue that comes from taxes and other charges levied in Toronto on everything related to transit and mobility (fuel tax, GST on new vehicles, registration fees, licence renewals, etc.) and put that into a fund to improve all forms of transport within the city.
oph replying to a comment from Squint / October 11, 2012 at 04:30 pm
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I, I, I, I... that is precisely this city's problem.
KNau / October 11, 2012 at 04:33 pm
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Grrr lefties!

Grrr taxes!

Grrr I have no knowledge of how funding and governance work!
ROB replying to a comment from Grandma Glory Hole / October 11, 2012 at 04:33 pm
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Quoted for Truth!! Tolls are the answer.
Fred / October 11, 2012 at 04:35 pm
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why not a condo infrastructure tax? according to TOronto life, a large % of the new condos are being (bought and developed) by foreign nationals, either so they can buy their way into immigration, or park their kids to go to UofT - and adding to the need for transportation upgrades (as well as hospitals in the core).
Chris replying to a comment from Me / October 11, 2012 at 04:46 pm
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Leave it to the right to criticize the "Left" while not providing any solutions to the problem at hand. Why not just say the private sector fairy will pay for it?

There are a number of revenue generating tools at hand that are all taxes, government fees, or fare price rises. Lowering the cost is needed but if Lord Ford can't do it then who can?



Squint replying to a comment from oph / October 11, 2012 at 04:50 pm
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Oh please, everyone is selfish in some ways.
aw replying to a comment from MyName / October 11, 2012 at 04:53 pm
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like!
Chris replying to a comment from mark / October 11, 2012 at 05:06 pm
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> Charge the users. Drivers pay the gas tax. Transit users should pay a 'transit tax'. Charge $5 a ride if needed.

In an ideal world users would pay the price and not be subsidized by government. Is there any other transit system in the world where this occurs? I would love to see how they manage it and what their taxes on drivers are like.

At $5 a ride would it make more economical sense to drive? With everybody driving it's likely that it would cripple our economy. Housing prices in the downtown core would go way up as walking would be the best alternative. Parking spots would become scarce or their prices would go up with the demand. I would finally get a seat on the morning rush hour subway.

Sean / October 11, 2012 at 05:14 pm
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Tax the snot out of the riders, not the taxpayers.
MER1978 replying to a comment from Me / October 11, 2012 at 05:16 pm
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"Leave it to the Left to support more taxes."

Leave it to the right to spew 100% BS non stop just to make sure we never build anything ever.

The private sector will pay for it... oh wait there was that time when they were asked to help pay for a Sheppard subway and all the developers refused to help.

The province/feds will pay for it... oh right they both have massive deficits right now and had absolutely no problem saying no to Toronto before when they could actually afford to help.

The gravy will pay for it... oh right except for that whole KPMG audit which basically identified things like "parks" as the gravy + anything that was reasonable to cut added up to a tiny amount vs what we need to be spending yearly on transit.
Miguel / October 11, 2012 at 05:16 pm
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I'm in favour of a 1% Tax, but it has to be born by all living in the GTA ie. Newcastle > Barrie > Guelph > Hamilton (since these are all people who commute to Toronto or outskirts and TTC in AND if it's for SUBWAYS, not LRT anything (above or below sruface). Everyone benefits from a Subway, drivers too, since it reduces surface congestion.
Craig replying to a comment from Fred / October 11, 2012 at 05:18 pm
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There is a development fee for condos (and houses), it's about $3,000 per one bedroom unit, more for more bedrooms. Some of it goes to the city to cover the cost of inspections the rest is supposed to go to infrastructure improvements in the area.
Tony / October 11, 2012 at 05:21 pm
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Ok.. Toronto makes a lot of money!! Use some of the money we already have. Where are all these billions going from property taxes alone?! this is BS.
C replying to a comment from mark / October 11, 2012 at 05:25 pm
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I don't think you understand the philosophy behind public transit.

It's not a luxury service for the wealthy. It's in large part to provide affordable transportation for those who cannot afford other means such as owning their own car.

You came across like nothing more than an over-privileged asshole. Congratulations.
cmon / October 11, 2012 at 05:37 pm
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instead of adding a tax, they should sell the TTC to a private company that treats it like a business to make money, instead of being supported by the government that supports all the freeloaders and dog fuckers that work over at the TTC. all the over staffing of mechanics that sit in a office all day long not doing there job, all the inspectors/supervisors they have stroking it all day long. i do work for the TTC and know what goes on in there. Everyone that doesnt have a inside look like me have no clue how much money is wasted on salaries and petty rules that supervisors enforce on guys like me that do contract work for them. why hire Contractor.
A private company will slash all those slackers that work for the TTC and there will be no need for rate increases and taxes. Torontonians have no idea on what realy goes on at the TTC. it's a joke and it is sickening to me how they take advantage of the innocent riders.

TTC need to go private and it will benefit the citizens of toronto that pay fares.
i rarely use the TTC but i know what goes on inside the offices, Garages, & maintence facility. its a Joke if the common person sees it.
Adam / October 11, 2012 at 06:02 pm
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I'm in favour. Just like I didn't feel way richer when the GST was cut from 7% to 5%, I don't think I'd notice much if the sales tax went back up by 1%.
paul / October 11, 2012 at 06:22 pm
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Simple. NOPE!! Cause I'm already paying the HST is more than enough. Paying 20cents a more a litre at the pump cause of that. Asks mcguilty for the money.
steve replying to a comment from mark / October 11, 2012 at 06:23 pm
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Drivers do not pay a road tax for city roads, the closet was a $60 year VRT which Ford got rid of.
drivers pay the same for city roads as do transit riders, from the property tax everyone pays.
City roads are subsidized 100%. the TTC is subsidized 27%.
But you know this, you choose to ignore it, you feel entitled because you drive
MER1978 replying to a comment from cmon / October 11, 2012 at 06:28 pm
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"instead of adding a tax, they should sell the TTC to a private company that treats it like a business to make money"

Right because if profit was the only reason to run buses we would definitely have just as much transit in the burbs.
Tommy replying to a comment from cmon / October 11, 2012 at 06:37 pm
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If you have so much inside-information on the wastefulness inside the TTC, why are you complaining on an internet forum? I'm sure the mayor and city councilors would be very interested in your findings - name names, point fingers. If what you say is true, why are you keeping it to yourself?
privatize / October 11, 2012 at 06:41 pm
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I agree that the TTC should be privatized, but since we are afraid of privatization I would vote for a 1% tax. We need to start paying for a system that will benefit everyone, but this useless, bickering, good-for-nothing council must earmark the revenue only, and I mean ONLY, for that purpose.

We are a shortsighted city. We can never and will never get our shit together and think about the future.
iSkyscraper / October 11, 2012 at 09:04 pm
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This is a very easy argument to make. First of all, some sort of revenue tax is needed. "Efficiencies" and evil unions, blah blah blah will not come up with enough dough. Secondly, any sort of tax is reasonable because public transit is, shocker, a public good. Sun Readers with the intelligence of a doorknob like to argue "users should pay for it (i.e. not me)", as if they live in a cave and somehow derive no benefit from an economy built on people being able to move around at low cost in dense envrionments.

That said, what is the right format? I personally prefer a payroll tax, because it is more invisible to the Ford Nation neanderthals who unfortunately still make up a quarter of the population. Certainly works for Paris, New York and other places and you can scale it based on geography -- i.e. the Paris core pays 2.6%, inner suburbs 1.7% and outer suburbs 1.4%. But you know what? All politics are local, and in Toronto a sales tax would actually work.

Because we already had one.

It was a special extra 2% sales tax that went to a dedicated fund - for deficits and all things federal. Went by the name of "GST". Remember that?

Life did not end when the GST was 7%. It was nice that it was rolled back to 5% by Harper, but obviously life will go on if it goes back to 7%, where that extra 2% instead of being for federal use now becomes a Toronto Tax, 1% for transit and 1% for other citywide capital infrastructure.

The benefits of more transit are obvious. But it is important to fund the other capital needs also. If you have had the chance to live outside of Toronto recently you will notice how shabby the place is -- all concrete and buckets of ugly. No spit and polish, creaking infrastructure. Take a look at Oklahoma City, a hick wasteland that now has downtown spaces that put parts of Toronto to shame, all because they have had a 1% sales tax for downtown capital improvements:

http://archrecord.construction.com/features/2012/American-City/Oklahoma/Oklahoma-City.asp

So yes, go for the sales tax, because we already had it. Only this time put it to transit and downtown improvements. Easy-peasy.

I got yer taxes right here / October 11, 2012 at 10:51 pm
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Parking tax

Extra tax on all parking tickets and moving violations (don't pay your tickets? you don't get to renew your license)




scottd replying to a comment from mark / October 11, 2012 at 11:06 pm
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That is one of the dumbest things I have ever read. Transit riders should pay less when the true cost of transportation subsidy is considered.
brendan replying to a comment from iSkyscraper / October 12, 2012 at 01:10 am
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What iSkyscraper said.
morton / October 12, 2012 at 06:45 am
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ditto to iSkyscraper
nototaxes / October 12, 2012 at 07:24 am
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f@ck the TTC, privatize now and no new taxes! But if they want new taxes have the hipsters on this site pay for it, they love taxes. The working families do not.
Niklas / October 12, 2012 at 07:30 am
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Has throwing more money at any government really accomplished anything? They have all the funding they need, they are just wasting it.
Jay / October 12, 2012 at 08:11 am
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I'm open to the idea of an additional fee or tax but only if it is solely directed at transit. Any fee or tax that is collected as goes into general revenues I will be opposed to. We all know if that happens the money will be used on other pet projects to gain favour for members of council. Too many people do not trust these peole with the money they collect today. Why should we trust them to implement a new tax and use it wisely?

Create a separate transit fund where we can see and track all revenues and expenses and how we are benefitting and you may get me interested. Unless that happens I'm not willing to support any idea that pumps more money into the City's general revenues.
j-rock / October 12, 2012 at 08:30 am
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I'm so sick of people who act as though they're Thoreau living all by themselves out in the woods, completely self-sufficient. Part of living in a society, involves paying for things that you may not use directly.

I don't want my tax money going towards unnecessary fighter jets and corporate tax cuts, or paying the mayor to coach high school football, but there you go. And unlike the examples I just cited, improved transit benefits everyone. Even if you never take a bus, streetcar or subway, as a driver, you will benefit from the reduction in vehicular traffic. I take transit, and I own a car, and I have no problem with this at all. As long as they make sure that the money goes into a dedicated fund for transit, and not into general revenues.

Torontonians love to complain about transit, but nobody, from the mayor on down, seems to actually want to pay for it. Finally, for members of the "Tax the riders" brigade, should people that don't drive get a rebate on that portion of their taxes that go towards road maintenance and construction? Grow up. I'm not sure if it's the economy, or the current administration, but over the past few years, people in Toronto have become petty and short-sighted, and we're all suffering as a result.
cmon replying to a comment from MER1978 / October 12, 2012 at 09:22 am
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there would be more, why do you think it has taken so long for the Subway to come up to Vaughan. the project was suppose to start minimum 10 years ago.
cmon replying to a comment from Tommy / October 12, 2012 at 09:32 am
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do you think that is really going to help? it is govt funded. look at the stuff that came out in the papers about TTC drivers using their cell phone, eating, and sleeping on the job has that changed anything? no. you would think they would hold an inquiry on the operation but they havent. you want to know why? b/c they know no matter what happens all they have to do is raise the fares and every thing is fixed for them on a monetary basis. riders dont have a choice we need the TTC to move us around, you have to pay regardless.

to let you know i have complained to city council. they want me to write letters. do you think it goes anywhere? it is a revolving door where they write me back and tell me they are looking in to it. no one want to get their hands dirty. this is why it is time for the people of toronto to know. and forums are how i get it out there.
iSkyscraper for mayor / October 12, 2012 at 09:35 am
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come back from NYC and save us. brilliant post. agree 100%
Joe / October 12, 2012 at 10:34 am
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A sales tax would only work if it were implemented across the GTA or Ontario. If it only was in Toronto, everyone would only make big purchases outside the core, leading to businesses flocking to the 905s. Income or property tax makes more sense to me, or even highway tolls. Imagine if the 407 was generating revenue for the city, instead of the disaster the Conservatives created by giving all the money to a private company.
iSkyscraper / October 12, 2012 at 11:26 am
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Joe, yes, it would have to be a GTA tax administered in the counties and regions that, say, are served by the primary current GO network. (Hamilton, Halton, Peel, York, Durham, Toronto, Simcoe...) Other regions, say Waterloo, could join later as the system expanded if they wanted new transit links to come to them. This is what has actually been used in US examples of a transit sales tax. You are correct that it would be a huge problem were the tax situation to change the moment you crossed Steeles. That might have worked in 1950, but in today's megatropolis any tax must cover the entire region.
lol / October 12, 2012 at 11:41 am
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Toronto can only do so much its up to the province and feds to come up with a solution like any other modern nation
I never comment / October 12, 2012 at 04:27 pm
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I haven't read all the info above, but the answer is a focussed road toll... You toll the people that drive in to the city but don't pay taxes in the city. Car commuters are the problem and many of them choose to use TO services, but don't pay in to the TO tax base.

Simple camera toll like the 407, but you only send a bill if the plate is registered outside the GTA.

Or you only "turn on" the tolls during rush hours (7:30 AM - 10 AM and 3 PM - 7PM).

Tax the behaviour!
RealityCheck / October 12, 2012 at 04:32 pm
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What's interesting about Thomson's proposal is that she focuses on Subway. I am not exclusively in favor of subways, but as I have said elsewhere on this blog, I firmly believe that only investments in RAPID TRANSIT will make a difference to our transit/congestion challenges. The monies spent on Toronto's LRT lines (with the exception of the Eglinton line) will do next to nothing to address the issue -- other than gobble up capital and operational dollars that could be better used elsewhere. Polls show that the public is wavering on additional taxes for transit; I would argue that much of that wavering has to do with money being poorly spent (whether on capital projects that don't deliver rapid transit or on subway stations the size of airport terminal). Deliver rapid transit (subways, even LRT in some configuration) and the public will likely be more supportive.
privatize replying to a comment from nototaxes / October 13, 2012 at 06:09 pm
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I am part of "working families" and NOT A HIPSTER, and I'd support a tax if it was properly allocated. Do not generalize with your ignorant comments. Public transit benefits EVERYONE!
Giancarlo / October 13, 2012 at 11:20 pm
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The solution is to abolish the City-of-Toronto By-Law that makes the TTC a virtual monopoly. That is - the law which says that the TTC is the *only* company that can sell "public" transportation. The TTC bears the same characteristic that all monopolies have its cost goes up and its quality goes down - progressively. No need to destroy the TTC, just force it to compete by abolishing this law, with the law gone it will be forced to match other companies services and lower their costs. The other thing is that this will ease congestion on the roads because it will become more worthwhile to take different "public" forms of transportation. That should make the environmental people happy yet they continue to endorse a one size which does not fit all solution.
MER1978 replying to a comment from Giancarlo / October 15, 2012 at 01:52 pm
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"The solution is to abolish the City-of-Toronto By-Law that makes the TTC a virtual monopoly."

We might get better quality on the routes that make money but that's only because private companies wouldn't spend anything on routes that lose.

The TTC needs to move to a payment by distance model then people using less congested lines would be paying closer to what it actually costs to provide service to them... that should be the transit rider participation in this massive fundraising activity.
Simon Tarses replying to a comment from Fred / October 16, 2012 at 06:21 am
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Agreed. Although, as I've said before, a lot of these condos would be better off being built in suburban Toronto than downtown Toronto.

@Giancarlo: why don't you and the other neocon drones/slaves who've commented here buy copies of Sim City and build a virtual city that you want to with all of the crap private services that you love so much? Either that, or find another planet to live and do your neocon privatized bullshit on, away from the rest of us who are smart enough to know that privatized transit doesn't work.

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