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Municipal sales tax idea to fund infrastructure
Published Wednesday, September 28, 2011 6:09AM MDT
A Calgary business group is proposing a one per cent tax to pay for unfunded cultural and recreational facilities.
The group Transformation Calgary says the tax is needed to keep Calgary competitive. Despite a recent survey by the Economist Intelligence Unit which named Calgary the world's fifth most liveable city in the world, the business group says our city is falling behind.
It is proposing a municipal tax that would piggyback on the GST.
The tax would be voted on by municipalities to pay for cultural and recreational facilities in that municipality.
Transformation Calgary says the tax model has been effective in American cities.
Scott Hennig of the Canadian Taxpayers Federation is opposed to the idea.
"The more you have to spend, the more tax you pay, and somehow I just think that's right," says George Brookman of Transformation Calgary. "If you drive a Porsche, you pay more tax that if you drive a chevette, so I think they are off based on that."
Transformation Calgary is hoping to have the penny tax on the ballot in time for the next civic election in 2013.