A new paper, published by the Institute for Municipal Finance and Governance and authored by Enid Slack and Harry Kitchen, argues that major cities in Canada should be given access to new revenue tools. Specifically, the authors describe the advantages and disadvantages of some of those potential revenue tools, and estimate the revenue that could be generated from a city income tax, city sales tax, and city fuel tax for eight large Canadian cities, including Toronto and Ottawa. According to Slack and Kitchen:
Large Canadian cities need access to more tax revenues, like their U.S. and European counterparts, if they are to meet their growing expenditure requirements. The range of services for which cities are responsible – from water, sewers, roads, and transit to social services and public health – has led many to suggest that the property tax cannot meet these challenges, nor is it the most appropriate tax for funding certain services.
Read the full paper here.