Toronto Board of Trade

Toronto Board of Trade

March 26, 2007 18:31 ET

Toronto Budget Underlines 'Serious' Problems

Board of Trade says tax increases bad news for business community

Attention: Business/Financial Editor, City Editor, News Editor, Government/Political Affairs Editor TORONTO, ONTARIO--(CCNMatthews - March 26, 2007) - The Toronto Board of Trade says the City is right to describe its operating budget as 'unsustainable', warning that Toronto cannot continue going further into debt, raising taxes and increasing spending.

"As today's budget shows, Toronto's government faces serious economic and financial problems," says Board President & CEO Carol Wilding. "Those problems will require fundamental changes."

Wilding notes that, despite some initial steps towards increasing efficiency, the City's net budget is increasing by 9.3% this year and tax hikes are being used to fill the budget gap.

"Obviously, we are not happy to see the City hiking business property taxes yet again when the business community here already pays the highest tax rates in the GTA and among the highest in North America. The Mayor did keep his promise to limit the business increases to half the residential hikes, but businesses in Toronto feel they already contribute more than their fair share."

Wilding points to the City's increasing use of efficiency audits, benchmarking and more cost recovery as the type of steps it should continue taking to control its costs.

"While City Hall can clearly do more, the bottom line is that it cannot deal with Toronto's problems all by itself. All three levels of government have contributed to Toronto's difficult situation, and all three need to take responsibility for addressing these challenges. After three budgets in seven days, we've seen some breaks for Toronto's business community, but the City's financial dilemma is not resolved."

The Toronto Board of Trade is the champion of a competitive and vibrant Toronto with a mandate to serve, represent and unite the city's business community. Founded in 1845, Canada's largest chamber of commerce operates at five locations across Toronto. Further information about Board events, policies, advocacy and products is available on its website at Further commentary from Board executives is available on the Board Blog at
/For further information: IN: ECONOMY, FINANCE, POLITICS

Contact Information

  • Glen Stone, Public Affairs Manager, Toronto Board of Trade
    Primary Phone: 416-862-4565
    Secondary Phone: 416-998-9458