See how your Board of Trade has spoken out for your interests
Business Unites in Support of Sales Tax Reform
On September 23, the Toronto Board of Trade joined with a
non-partisan coalition of leaders from the business community –
the Smart Taxation Alliance – to demonstrate broad-based
support for sales tax reform in Ontario.
The coalition endorses the planned harmonization of the provincial
sales tax with the federal GST as the most important measure available
to stimulate economic recovery. Positive impacts of a single sales tax,
when combined with other announced tax reforms as part of the 2009
Ontario Budget, will include:
• cutting the marginal effective tax rate on new
investment in half;
• encouraging business investment in Ontario and the creation
of jobs;
• dramatically reducing red tape faced by Ontario around the
collection, remittance and auditing of different sales taxes;
• saving Ontario businesses an estimated $500 million
annually in administration costs;
• removing layers of embedded taxes in goods and services
throughout Ontario, valued at roughly $5 billion
• leveling the playing field for all goods and services, so
that all sectors contribute equally to revenue generation in the
province; and
• increasing competitiveness of businesses in our
province.
The Smart Taxation Alliance includes the Toronto Board of Trade, the
Ontario Chamber of Commerce, AGS Automotive Systems, Canadian Chamber of
Commerce, Canadian Council of Chief Executives, Canadian
Manufacturer’s & Exporters Ontario, Certified General
Accountants of Ontario, Ontario Road Builders’ Association,
Ontario Trucking Association, Retail Council of Canada, and TD Bank
Financial Group.
For more details and statements from participants,
download the joint news release from the Smart Taxation
Alliance.
Federal Government Should Focus on Transit, Green Economy:
Board of Trade
Submitted on August 14, our 2010 Pre-Budget Submission reflects
important priorities of our members. Based on strict guidelines, the
Board was permitted to submit only three recommendations. While the
Board will prepare a more substantive list of policy ideas to the
federal government later this year, last week’s Pre-Budget
Submission recommended:
1. Development of a National Transit Strategy
2. Ensuring that current Canada-Ontario Immigration Agreement funds are
spent effectively and that a new Agreement is signed expediently
3. Creation of coordinated federal and provincial green economy
strategies
Download our full 2010 Pre-Budget Submission to the federal
government now.
Choosing our Future: An Economic Action Plan for the
Greater Toronto Region
The Greater Toronto Region Economic Summit has released
Choosing our Future, a 12-point plan designed to place the Toronto
region on a path to economic recovery.
The day-long GTR Economic Summit on May 7, organized in part by the
Toronto Board of Trade, brought together 250 delegates from business,
labour, all levels of government, academia and the voluntary sector to
identify actions that would revive and strengthen the region’s
economy.
More than 200 proposals ranging from short- to long-term strategies
emerged from the Summit. Choosing our Future focuses on the short-term
actions that can taken immediately to benefit the region.
The final report outlines a 12-point plan touching on five specific
themes:
• Think and act like a region
• Build on our strength in financial services
• Green the region’s industrial base
• Connect people, firms and government
• Remove barriers to accountable infrastructure spending
For more information on the Summit and to download Choosing our
Future, visit www.gtreconomicsummit.com.
Greater Toronto Region Economic Summit: Promoting
Prosperity for the Entire Toronto Region
On May 7, Toronto Board of Trade President and CEO Carol
Wilding co-chaired the Greater Toronto Region Economic Summit,
a landmark event that brought together more than 200 top leaders from
business, labour, the academic community and all levels of government to
develop, for the first time, an integrated economic strategy for
the entire Toronto region.
The sold-out, day-long Summit took place at Seneca College in Markham
and provided a vital forum for bright minds and top executives to
develop results-oriented, ready-to-implement actions that can benefit
the entire GTR. Summit chairs were Her Worship Hazel McCallion, Mayor of
Mississauga, and John Honderich, incoming chair of Torstar Corporation.
Additional distinguished speakers included Finance Minsiter Jim
Flaherty; the Hon. Mike Wallace, MP; Premier Dalton McGuinty; the Hon.
Michael Bryant, MPP; Toronto Mayor David Miller and Markham
Mayor Frank Scarpitti.
For more details and photos of the Greater Toronto Region
Economic Summit, visit www.gtreconomicsummit.com. Watch for a full article
on the Summit and its outcomes in the Summer 2009 issue of On
Board magazine.
Board Weighs in on Green Energy Act
The Green Energy Act is one of the most ambitious pieces of
legislation introduced in Ontario in over a decade. Its provisions
promise to transform Ontario’s energy market and to position
Ontario as a leader in green technology. The Board is generally
supportive of the Green Energy Act and its aim of increasing
use of cleaner, renewable energy sources. In particular, we view
the upgrading of Ontario’s electricity system to a
“smart” power grid as a needed advance. The Board,
though, raised a number of concerns with the legislation – in
particular, the fact that most of the details are not yet clear and will
be identified later through regulation. Balance must be struck
between security of supply, environmental concerns and price
competitiveness, and between the rate and pace of change and
Ontario’s global competitiveness. The Board believes further
study of the impact that the Green Energy Act will have on
electricity costs, on future demand and on Ontario’s global
competitiveness is warranted. The Board also believes the business
community should be involved in this analysis.
Download our letter to the Hon. George Smitherman, Minister of
Energy and Infrastructure, on the Green Energy Act.
A Big Move Forward for Metrolinx
Traffic congestion and gridlock. Members have identified these as the
number one barrier to the competitiveness of the Toronto
region. Prosperity-crushing problems that cost the region $6
billion annually.
Since 2003, the Toronto Board of Trade has been the leading advocate
for a regional solution. Metrolinx is the result: the agency
responsible for the planning and implementation of a region-wide transit
system.
Since Metrolinx was created, the Board has continued working
with all levels of government to ensure that the agency has the powers
and resources it needs to successfully meet its mandate. Following the
release of the bold, $50-billion Metrolinx Regional
Transportation Plan in September 2008, the Board has focused its
recommendations on governance reforms for the Metrolinx board of
directors.
Thanks to the Board of Trade's consistent efforts on this front, the
Province has now introduced the Greater Toronto and Hamilton Area
Transit Implementation Act, 2009, a new piece of legislation that
answers the Board's call for the establishment of a new board of
directors that draws on private-sector expertise to move Metrolinx
from planning to implementation mode.
The new legislation represents a major policy success
for Board of Trade members who live, work and do business
throughout the Toronto region. If adopted, the Act will help
expedite critical transit infrastructure projects in the Greater Toronto
Hamilton Area.
Download our full set of recommendations on the Metrolinx Draft Regional
Transportation Plan (November 2008).
On April 22, 2009, the Board of Trade made a deputation before the
Standing Committee on Finance and Economic Affairs,
re-emphasizing its support for the Greater Toronto and Hamilton
Area Transit Implementation Act, 2009. Download a copy of
our speaking remarks to the Committee.
Provincial Budget 2009—Important Board of Trade
Wins for Our Region
Back in January, the Toronto Board of Trade provided pre-budget
advice to the Government of Ontario. Based on direct input from members,
the Board urged the Province to use this year’s budget as an
opportunity to promote growth in the Toronto region, which would build
greater prosperity for the entire province.
Members told us that traffic and gridlock are the number one barriers
to competitiveness in the Toronto region. So the Board asked the
Government of Ontario to invest more this year to shore up our
chronically underfunded transit infrastructure. The Province listened,
committing more than $9 billion in new transit and transportation
spending.
Members relayed their deep concerns around the high tax burden
Ontario businesses shoulder. So the Board recommended reductions to the
corporate tax rate and corporate minimum tax, as well as harmonization
of the GST and PST. The Ontario Government heard what the Board had to
say and included all of these measures in the 2009 Provincial
Budget.
Members also emphasized the importance of protecting and creating
jobs in our region. So the Board encouraged the Government of Ontario to
take active steps to attract investment and to promote Toronto as a
global financial centre. The Province responded by committing to the
creation of a national securities regulator. Moreover, the government,
like the Board of Trade, believes that Toronto is the best possible home
for the headquarters of this national regulatory body.
This is a budget that will make a difference for our businesses now.
More important, it is a budget that will help attract new investment,
create jobs and foster greater prosperity for our future.
Download our full Pre-Budget Submission now.
Board of Trade Addresses City Executive on
Business Property Tax
Toronto businesses pay the highest property taxes in the GTA and
among the highest in North America. This is over and above their other
corporate tax obligations. The Toronto Board of Trade has always
championed fair levels of business taxation and continues to work toward
easing the tax burden on our members.
Last Friday, March 20, the City of Toronto released its proposed
property tax rates for 2009. Its proposal includes a tax cut of 0.91%
for the small business property class, which is welcome news. However,
due to shifting tax burdens as a result of reassessment, the remaining
commercial and industrial property classes are facing the second-highest
business property tax increase since amalgamation. On Tuesday March 24,
Board of Trade President and CEO Carol Wilding appeared before the City
of Toronto Executive Committee to raise the issue of these tax shifts
and to request a meeting with Mayor David Miller.
Read Ms. Wilding’s deputation to the City
Executive Committee on the impact of the property reassessment for
business.
Toronto Board of Trade Responds to Toronto City
Budget
In a speech before the City of Toronto’s Budget Advisory
Committee, Board of Trade President and CEO Carol Wilding called for a
multi-year budgeting process aimed at tackling the City’s lack of
fiscal sustainability.“We are in a recession,” said Wilding.
“Businesses and governments are scrambling to adjust to new
economic realities. And Toronto will have to adjust as well.”
Wilding called upon the city to be more efficient – the city
found only $32 million worth of true efficiencies on an $8-billion
operating budget. And she called for the city to accelerate the
rebalancing of property tax ratios, a longstanding Board request.
Read Ms.Wilding’s full oral deputation, and view the full backgrounder the Board submitted to
the City.
Click here to read our official news release.
UPDATE: Read our March 24 deputation to the City Executive Committee on
the impact of property reassessment for business.
Groundbreaking Report on Intellectual Property Released at
Toronto Board of Trade
On February 3, Toronto Board of Trade President and CEO Carol Wilding
addressed members of the Canadian Intellectual Property Council (CIPC),
as the organization released its landmark report on intellectual
property rights at the Board's Downtown Centre. The report calls for
substantive and immediate reforms to Canada’s intellectual
property rights system, which is a vital cornerstone of innovation and
national economic prosperity. Bob Weese, Chair of CIPC and Vice
President, GE Canada emphasized that theft of intellectual property and
sales of counterfeit goods account for billions of dollars in lost
revenue, along with serious threats to public health and safety.
Read the full CIPC report now.
2009 Provincial Pre-Budget Submission
As Canada’s largest local chamber of commerce, the
Toronto Board of Trade offers a constructive and reasoned voice, playing
a vital role in elevating the quality of life and global competitiveness
of Canada’s largest urban centre. The Board’s 2009
Provincial Pre-Budget Submission presents the issues of its diverse and
far-reaching membership by focusing on three key areas:
1. Greater investment in infrastructure
2. Investment in skills development and
retraining
3. Reducing business taxes
This submission presents a number of poignant policy recommendations
designed to enhance the competitiveness of the City of Toronto,
which will result in a stronger and more competitive Ontario.
Download our full Pre-Budget Submission now.
Toronto Region Civic Leaders Identify GTA
Infrastructure Priorities
With Canadian governments at all levels looking to invest in
infrastructure to stimulate a weakened economy, Toronto region civic
leaders came forward to ensure that Toronto would receive its needed
share of investment. The Toronto Board of Trade and the Toronto City
Summit Alliance worked together with other Toronto region leaders to
identify infrastructure projects across all sectors that could, with the
right financial and policy support, create significant stimulus and jobs
in 2009-2010.
In December, the Board and the Alliance met with federal Finance
Minister Jim Flaherty and Infrastructure Minister John Baird,
encouraging them to consider a national public transit fund and other
innovative funding mechanisms as economic stimulus in the federal
budget. On Thursday, January 15, the Board and the Alliance held a joint
press conference to officially announce a full list of priority
infrastructure projects.
Download the Memo to Ministers Flaherty and Baird, submitted
jointly by the Toronto Board of Trade and the Toronto City Summit
Alliance.
Click here to view the news release issued by the Board and the
Alliance.
Sustainable City Finances
Healthier municipal finances reduce business taxation and enhance
Toronto’s economic, social, and cultural vitality. The Board has a
legacy of holding the municipal government accountable for its spending.
We continue to work with the City as it finds the balance between social
and business agendas.
In 2008, we encouraged an independent, third-party review of
Toronto’s finances. The report agreed that City Hall must do more
to reduce costs, leverage assets, and make both infrastructure
investments and the creation of a competitive business environment its
top priorities. In 2007, the Board’s advice contributed to the
City’s first balanced budget since 1998.
In 2008, the Board was instrumental in urging the Province of Ontario
to take back responsibility for social program costs downloaded onto
municipalities in the 1990s. The provincial government’s November
2008 announcement provides the City with an additional $500 million a
year within 10 years to use toward sustainable city finances.
Fair Taxation
Fair taxation is vital to the competitiveness of Toronto’s
business environment. The City of Toronto’s residential property
tax rates are considerably lower than those of any other municipality in
the region, while its commercial and industrial property tax rates are
among the most expensive. These uncompetitive tax rates adversely impact
businesses and job creation.
Academic research and surveys of business leaders show that
comparatively high business tax rates are forcing jobs to the 905.
Reports suggest that between 1991 and 2006, Toronto lost roughly 100,000
jobs, while the 905 region gained more than 700,000 new positions.
The Board of Trade has a long history of advocating for fair property
taxes. In 2007, as a result of the Board’s advocacy, the Ontario
government reformed the Business Education Tax. By 2014, this move will
result in an annual savings of about $200 million for Toronto
businesses. In addition, we sought lower capital tax rates (particularly
for manufacturers) and corporate and small business taxes. All of these
points were addressed in the provincial budget in 2007.
City of Toronto Act
Canada’s largest city is also the country’s fifth largest
government. Yet until 2006 its legislative powers were no stronger than
the smallest hamlet. The passage of the City of Toronto Act was a
triumph of the Toronto Board of Trade’s longstanding efforts to
empower Toronto with the tools needed to be competitive with urban
economies around the world. Coupled with other reforms, including
permanent federal transfer payments—like the five cent per litre
gas tax--the City has powerful new revenue tools and fiscal flexibility.
Toronto can now shape its future through the development of economic
strategies, economic growth incentives, and sustainable fiscal
finances.
Tax Increment Equivalency Grants
Tax Increment Equivalency Grants (TIEGs) are a powerful example of
what is possible under the new City of Toronto Act. In 2008, the Board
championed the introduction of this new economic development tool. TIEGs
allow the City to rebate a portion of the incremental realty tax
increases associated with commercial or industrial property
redevelopment. Coupled with provincial property tax reforms – also
championed by the Board – TIEGs accelerate the reduction of the
differences in commercial and industrial realty taxes between the 416
and 905 regions.
