Province paves way for tax hikes

Ontario’s Liberal government is moving to ensure that cities don’t have to hold a referendum if they want raise taxes. The Taxpayer Protection Act — passed by the Mike Harris government to require a public vote on tax hikes — is being amended so that no referendum is needed on the City of Toronto Act and other pending legislation to give Ontario cities new taxing authority.

“ This is something that is required to fully empower municipalities,” said Municipal Affairs Minister John Gerretsen. But the amendment reminded Queen’s Park observers of the government’s controversial Ontario health premium, unveiled just before the 2004 federal campaign that left Prime Minister Paul Martin with a minority.

“ It may help” federal Conservative Leader Stephen Harper, predicted Progressive Conservative House leader Bob Runciman.

Pollsters blamed last year’s health premium for a steep drop in Liberal support early in the 2004 campaign that prompted Martin to distance himself from Premier Dalton McGuinty, who had promised not to raise taxes.

Gerretsen defended the timing of yesterday’s amendment, introduced the same day the federal Liberals were defeated in a motion of non- confidence.

“ This bill does not raise any taxes,” he said. “ It recognizes that Torontonians — indeed, residents of any Ontario municipality — can make decisions and hold their councillors accountable.” The amendment, known as the Respect for Municipalities Act, is aimed at the upcoming City of Toronto Act designed to give the city more powers — including powers to levy new taxes. Runciman said it’s outrageous that the Taxpayer Protection Act, which the government already amended to pass the health premium, is being overridden again. He says citizens should be able to have a say. But Gerretsen counters the government doesn’t have time to hold a referendum, with the City of Toronto Act expected in the Legislature by Christmas. New Democrat Leader Howard Hampton said “ municipalities need to be careful what they wish for” when pushing for new taxation.