New taxes

Toronto is considering eight possible new taxes (article, graphic summary in PDF form).

Here's what I think:

Tobacco, billboard, and vehicle taxes: These don't and never will affect me.

Alcohol tax: This does affect me, but I recognize that it's a sin tax and am willing to accept that. You can tax my alcohol as much as you'd like, and if it becomes a burden I'll cut down my drinking.

Entertainment tax: I'm not sure about the advisability of this. Conventional wisdom is that taxing something serves as a disincentive. Given that entertainment in Toronto is already expensive, and that Toronto is always trying to attract more tourists, I don't think an additional tax on entertainment will help. The only way it might serve as a disincentive to me personally is that it might make me more choosy in the movies and theatre that I consume, but I'm already choosy - I don't go to movies or plays that are "this might be good," I hold out for "this will be good." I have my reservations, but I'm willing to let people who know more about the effect of taxation on human behaviour decide.

Land transfer tax: I don't much like this one. What I don't like about the process of buying property in general is that there are other costs on top of the price you pay for the real estate, but it's difficult to find out what they are. I know that if I ever buy, basically my entire life's savings will be used as a downpayment, thus greatly hindering my ability to absorb unexpected extra costs. (There's no way to avoid this - when I run my salary through a mortgage calculator, the amount of mortgage they're willing to give me is nowhere near the price of anywhere I might want to live, so I'll need a huge downpayment to make up the difference.) As a prospective owner, this makes my life more difficult. As a consumer, I don't like it because I don't like any measure (including regular sales taxes and telecommunications pricing) where there are additional fees on top of the advertised purchase price. There's also the fact that, of these eight things, real estate (i.e. shelter) is the greatest necessity. Living somewhere is a necessity, and therefore buying and selling real estate is a necessity. (Yes, some people do it as financial speculation, but for others it is a necessary part of life.) Although owning is less common in Toronto, I don't think it should be treated as a luxury. Pricey as it may be, it's still your home.