TTC funding idea

In reality its more then just the TTC’s problem. Its Toronto’s, the public’s, the businesses and all of the people who come in and out of Toronto. Toronto has a majorly underfunded transit system which for years has been allowed to defer maintenance in order to reduce cost increases. I believe that we for years have been subsidizing the services which we use on a daily and never truly understood the true cost of offering these services. As monetary constrains grow in major cities we are seeing more service cuts and more service cost to the individual user. The TTC is no different; the TTC has a 2.7 billion dollar deficit which has been allowed to grow under many different councils and provincial governments. I truly believe that the most important way to tackling the issues that the TTC faces is to have a stable funding platform and formula to get this maintenance under control. I believe that taxes are the most consistent and the most stable formula for funding these TTC expansions and repairs. I wanted to try and have accurate number so I looked exclusively at a couple different means of introducing more funding. A 2% increase annually in funding for the TTC of which 1.6% went to the Scarborough Subway expansion. The 0.4% would be directly straight into a TTC fund that would deal with maintenance. I also looked at increasing the HST by 1% every 2 years as a means of raising money. I like the idea of raising consumption taxes because of the the fact an individual has the ability to pick and choose how much he/she consumes. I know that increasing consumption taxes can negatively affect businesses and eventually will lead to a decrease in consumption and lead to decreased revenue. Here are some of the numbers I used.

Toronto: 2.53 million (39%)
GTHA: 6.5 Million
1.6% – 38 Million = 2.375 Million per 0.1%
$72,000 Average family income
1% HST+ GTHA = 1.3 Billion annually ($507 Million)
$500,000 House = $3,611.58 Annually
LRT = $1.22 billion contract (204 units – $6 mill per)
Rocket – $1 Billion (234 units – $4.27 million per)
$2.7 Billion Infrastructure deficit

Year 1: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million)
1% HST (Toronto) – $507 Million (HST 14%) Total Investment: $554.5 Million

Year 2: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million)
Total Investment: $602 Million

Year 3: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million) 1% HST (Toronto) – $507 Million (HST 15%) Total Investment: $1,156.5 Billion

Year 4: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million)
Total Investment: $1,204 Billion

Year 5: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million) 1% HST (Toronto) – $507 Million (HST 16%) Total Investment: $1,758.5 Billion

Year 6: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million)
Total Investment: $1,806 Billion

Investment Potential: 204 LRT ($1.22 Billion) + 126 Rockets ($512 Million) + $73.6 Million (Deficit)
$2.7 Billion (deficit) – $1.806 Billion (Money) = 900 million backlog
102 LRT ($601 Million) + 63 Rockets ($256 Million) + $946 Million (Deficit) = $1.75 Billion (Remainder)

Year 7: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million) 1% HST (Toronto) – $507 Million (HST 17%) Total Investment: $2,360.5 Billion

Year 8: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million)
Total Investment: $2,408 billion

Year 9: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million) 1% HST (Toronto) – $507 Million (HST 18%) Total Investment: $2,962.5 Billion

Year 10: 2% Tax increase – 1.6% – Scarborough ($38 million) – 0.4% to TTC upgrades ($9.5 Million)
Total Investment: $3,010 Billion

Investment Potential: 300 LRT ($1.796 Billion) + 200 Rockets ($828 Million) + $386 Million (Deficit) = $2314
$2.7 Billion (deficit) – $3,010 Billion (Money) = 310 million surplus
150 LRT ($889 Million) + 100 Rockets ($431.75 Million) + $1,689 Billion (Deficit) = $1,010.75 Billion (Remainder)

$500,000 – $65,000 taxes at 13%
– $90,000 taxes at 18%
+ $25,000 in taxes

Other options for raising money could be a direct fee onto TTC users that would go into maintenance and not just operations. A fee directly placed on developers to help fund the transit projects Toronto needs to grow. Green bonds like the province of Ontario is doing to raise money for the transit projects among more ideas. Toronto needs to improve the transit in the region and make itself a modern city because its the decision maker for the country.

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