Preville on Politics
Against my own self-interest
Posted on July 12, 2007 by Philip Preville
Talk radio has been going nuts all week over the city’s proposed land transfer tax. Adam Vaughan, though he’s not among the architects of the tax, keeps going on AM640 to defend it valiantly. Callers are livid. I’m a first-time homeowner—hasn’t even been a year now—and I know that this tax will reduce the value of my investment. And yet, I don’t give a damn. I think this tax makes sense.
Maybe I’m unconcerned because I just bought a home and expect to live in it for some time, so I know I’m not going to have to pay it for years to come. But this is one of the proposal's strengths: it will be charged to the least number of people, yet it will generate a substantial amount of revenue. Given that Toronto’s property tax rate is so low, the tax just ups the price of entry: pay up front to get into the market, then pay low monthly rates. I was mad about the provincial land-transfer tax we had to pay when we bought the place, but my anger was quickly redirected towards all the necessary repairs that the fluffer, in concert with my own real estate agent, successfully hid from view. Successive and steep increases in market prices have not deterred people from buying homes, so I find it hard to believe that a 2% tax would somehow ruin neighbourhoods, as the AM640 guys were hysterically arguing.
Philip Preville
Veteran freelance writer Philip Preville lived much of his life in Montreal and Edmonton before he was lured, like so many Torontonians before him, by the promise of more work and a better living. A National Magazine Award winner and former Canadian Journalism Fellow at the University of Toronto’s Massey College, Preville writes Toronto Life’s politics column. He lives with his wife and one-year-old son in Riverdale, just close enough to the Don Valley Parkway that he can hear it when he steps outside his house—but just far enough away that it doesn’t keep him awake at night. On his office wall hangs a 1938–39 press pass belonging to his grandfather, Elias Gannon, who wrote for the Montreal Star.
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Comments
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Ahab July 12, 2007 at 4:25 p.m.
Keep in mind that most hysteria is based on a typical TAXES EVIL DIE DIE DIE mentaliy.
City Hall doesn't want to use property taxes because their too high already...so they switch to what is really a property sales tax? That's an improvement that will nail those who buy and sell for a living. But it doesn't make as much sense as liqour and hotel sales taxes. Luxury really.
Ideally the city should just be allowed to collect it's own GST and sin taxes. (liquor and gas)
Philip Preville July 12, 2007 at 11:47 p.m.
But Philip, by noting that citizens receiving the same services on the same street pay different taxes, you just reinforce the regressive nature of the tax. A land transfer tax doesn't discourage bad behaviour unless you consider property to be theft (see last week's NOW) *and* it's regressive.
When you levy regressive taxes (fees, essentially) they should fund direct effects - development charges, plastic bag taxes, garbage pay-by-weight, congestion, parking etc. They should ideally fund services to cope with their effects - infrastructure improvements mostly.
In the case of land transfer, the house is already built and requires no extra roads or sewers when it's under one owner or another. Most of the rich already live in their "last house" or at least the last one in this jurisdiction. But since the Province already charges it, it's easy to collect. No wonder the Province is proposing subway extensions above Steeles - it's for the flight of North Yorkers to Vaughan and Richmond Hill!
I had hoped Vaughan would carry the flag against Miller next time, but I think his attitude to the City Airport (gotta get elected I guess) and his opposition to the TTC's King Street project (hmmmm...) coupled with this (gotta be kidding) makes me think that those who want a change will have to look elsewhere.
Adam July 13, 2007 at 11:49 a.m.
I don't own a home and whether the exemption for first time buyers is provided or not I'll support the land transfer tax.
If I buy a home then I can surely scrape together a few more bucks -- especially if those extra dollars are going to be directed toward improving Toronto.
Far worse than any tax would be if by the time I have a family (within the next 5-10 years), this city is still deprived of excellent public spaces, high quality public transit and public services that truly meet the needs of the people of our city only because in 2007 we were too selfish to look beyond ourselves and make a much needed investment.
If Toronto is going to realize all of its potential it needs to be free of the burden successive provincial governments have placed on us, we need to have a revenue source that grows with the economy and, as Torontonians, we need to make an investment of our own. After taking the bold step of agreeing to make the first investment, hopefully those who hold the key to the other two parts of this equation will be persuaded to give us what we need to succeed.
new home owner July 13, 2007 at 10:56 p.m.
The proposed land transfer tax works out to MORE then just a 'few bucks' - wait until you pinch and save for your first house. You might not have food for the first 6 months, but you'll have your house.
I didn't realize society was regressing back into the haves and hae nots - but the new land transfer tax is a step backwards. Buying a house shouldn't be considered a luxury - it's a basic need - espeically for young people who want to help build and INVEST in their local community.
Altaf Hussein July 13, 2007 at 11:38 p.m.
Toronto has one of the lowest residentiaL property tax rates in the GTA. The city could easily raise property taxes by 50% and still be competitive with Markham, Vaughan, etc. Instead, Mayor Coward decides to tax people trying to move to Toronto, immigrants, and young families.
If the city needs revenue, raise property taxes, make rich people, like Preville, who already own homes pay for the services the city provides. Don't pick on newcomers.