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Cities’ Infrastructure Gap: |
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Ottawa - Wednesday, May 22, 2002 - by: Walter Robinson, Federal Director, Canadian Taxpayers Federation | |
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city |
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gas |
But instead of heeding some of their calls for new taxing powers for municipalities, redirecting federal gasoline taxes — which contributed to Ottawa’s $9.8 billion surplus for 2001/2002 — is a better remedy. |
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2.4% |
Gas taxes are a user fee that should be earmarked for road and highway renewal. Provinces generally understand this idea but Ottawa is still user-fee challenged. Of the $4.8 billion collected in federal gas taxes last year, the feds returned a paltry 2.4% ($113 million) back in provincial transfers for roadway spending; 99% of this amount was spent east of Ontario. Even if all infrastructure projects are counted, it is still less than 20% of almost $5 billion collected. |
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42% fuel |
Ottawa’s gas tax rip-off is nothing short of highway robbery. Last year, gasoline taxes accounted for an average of 42% of the pump price paid by motorists. Yet national, regional and city roads and highways are rife with potholes: local mechanics have never had it so good. And Toronto Dominion Bank Economics and the Association of Consulting Engineers both estimate Canada’s roads and highways deficit to be $17 billion. |
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more |
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gas tax |
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fuel |
With the release of a new report, (complete pdf file) Filling the Infrastructure Gap, the CTF recommends that Ottawa put federal fuel taxes back in the service of municipal roads. It time for Ottawa to “use it” or “lose it” when it comes to gas taxes. |
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$2.2 |
The feds should adopt the Canadian Taxpayers Federation Municipal Roadway Trust program that would dedicate $2.2 billion, almost 50% of federal gasoline tax revenues to municipalities to draw upon for roadway development. Accountability would be maintained with annual reports from cities, vetted by the federal Auditor General. This model provides immediate cash for stretched urban regions and provides federal accountability for spending of federal tax dollars. |
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reduce |
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road |
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work |
Long before the cities agenda became fashionable, the Canadian Taxpayers Federation was addressing the needs of Canada’s urban regions. Now it would nice if Canada’s big city mayors and the Federation of Canadian Municipalities got on board and endorsed the Municipal Roadway Trust model. There’s no excuse not to since a copy of the Canadian Taxpayers Federation report was hand-delivered to Federation of Canadian Municipalities President Jack Layton’s office in Toronto. Somebody should ask him what he thinks? |
Walter Robinson Federal Director |
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