POL346Y5 Lecture Notes - Lecture 7: Sales Tax, Child Care, Externality
Document Summary
Service off-loading: unfunded mandates, immigration, social housing, water quality. Consequence: municipalities in defecates while provincial governments are ahead. Transfer payments: from provincial and federal governments, rationale: externalities, possibility of free-riding, national interest, more or less stable, conditional grants, unconditional grants, payments in lieu of taxes, revenue or tax agreements (sales, gasoline) Transfer payments as a percentage of municipal revenues: 1990: 45. 7, 1994: 25. 4, 2000: 17. 9% Higher property taxes in city, lower in suburbs. Challenges local government grapples with: how/whether to align rates with costs, mechanism that you"re using with the services you"re providing, how/ whether to align benefits with payees o. How to increase revenue: new sources, income tax, sales tax, fuel/vehicle tax, city of toronto act, alcohol, vehicles, land transfer, tobacco, amusement, parking, billboards, congestion, taxing powers, toronto vs. missisauga. T- said they were going to wait and see if more money came from the province.
