The road tolls for thee

Last week, Toronto mayor Join Tory announced a plan to toll two major Toronto highways, the Gardiner and the DVP. The city is starved for cash with huge shortfalls for both infrastructure (new housing, new transit lines) and even everyday operating expenses. Tolls are supposed to help close this gap. But despite the absolutely huge revenue needs of this city, there a case to be made against tolls from the left.

There is a simple practical argument against the proposed tolls: they won’t raise very much money and any revenue is years away. City planners calculate about $200 million per year of new money once tolls are in place. That may sound like much but Toronto needs are in the vicinity of $30 billion just to catch up with a growing population and ageing infrastructure. And the city needs the money now.

toronto-road-tolls-20161124

John Tory has challenged those who oppose the tolls to spell out the alternative. Taxing parking spaces would raise $500 million and could be done right away. Getting residential and commercial property taxes to at least match long-term inflation and beat it, even with the necessary rebates for those house-rich, income-poor, would raise another huge chunk of cash. This isn’t even getting to more creative options—many of them included in an appendix to a KPMG report commissioned by Metrolinx.

Given the revenue crisis, lefties could easily come up with a viable, progressive money-raising plan even from a list prepared by the market-friendly consultants at KPMG. A municipal income tax? Why not since the province and the feds are raising less then they used to through this measure. Even a municipal sales tax with hefty rebates for low-income and working-class folks. It’s not a question of options but political strategy.

(more…)

Read More

Linda McQuaig on Hudak’s imaginary jobs and Canadian inequality

Today, I’m happy to present another extended interview and my guest is Linda McQuaig. Linda is a National Newspaper Award-winning journalist and commentator who has worked for the Globe and Mail, National Post, Toronto Star and many other outlets. She is also a best-selling author of numerous books that have focused on and popularized a host of economic issues. Her most recent book, co-written with Neil Brooks, is The Trouble with Billionaires: How the Super-Rich Hijacked the World and How We Can Take It Back. 

Just last week, Linda wrote a sharp piece critiquing Tim Hudak’s platform in the upcoming Ontario election. We discuss this article and Hudak’s plans in the first half of the interview, while moving on to more general questions centered on the topic of rising inequality in the second half.

Read More

Hudak’s plans to cut teachers in statistics and politics

It’s election time in Ontario and that means graphs and statistics, facts and factoids, some stale, some new come out of the woodwork. Take the tweet below as an example, one that riffs on the old theme of an exploding public sector encapsulated in Tim Hudak’s promise to cut 100,000 public service jobs:

Let us even take the author’s word that he is non-partisan and found some seemingly interesting data; the focus is the chart, not him. There are two issues. The first is much simpler: the graph is a misportrayal. It uses data from a Statistics Canada sample-based survey to proxy for teacher employment and population data to proxy for student enrolment. While using proxies for missing data can be acceptable and justified, in this case, there is absolutely no reason for it. Both teacher employment data and enrolment data are exhaustively compiled by Ontario’s Ministry of Education. Here is the same graph with correct data:

140513 Teachers vs Enrolment
(more…)

Read More