New Taxes: The Liberals Eye Tires - Tire Review Magazine

New Taxes: The Liberals Eye Tires

(Windsor (Ont.) Star) Ontarians probably don't remember Premier Dalton McGuinty campaigning to hike taxes last fall, or mentioning that the Liberals had any tax hikes up their sleeves in last week's budget.

But guess what? McGuinty is once again setting the table to increase taxes.

This time, the Liberals are looking at a $3 to $5 tire tax – they call it a fee – that would go into a fund to recycle tires. First, we can all agree that no one wants the countryside littered with old tires. But there are several issues raised by the idea of a tire tax.

Ontario’s initial experience with a similar tax was a disaster. The Peterson Liberals introduced a $5 tire tax in 1989 and it was killed by the Rae government four years later when the New Democrats discovered the money was going into general revenues without any provision to get rid of old tires.

In fact, McGuinty quashed the idea of reviving the tire tax when it was proposed in 2005. And now, just days after giving the OK to develop a tire tax, the Liberals are also bandying about the idea of a $10 recycling tax on TVs and $13 tax on computers. That could be followed by laptops, printers, monitors, cellphones, radios and cameras.

Conservative finance critic Tim Hudak pointed out there’s no guarantee how the tire tax will be spent: "To deliver a so-called ‘no new taxes’ budget, then three days later introduce a new tax is dishonest in the least and certainly unethical. It’s another attack on families’ pocketbooks."

The McGuinty Liberals obviously believe the growing populism associated with the environment will let them get away with the imposition of a tire tax. However, by the same token, the importance of the environment should allow the government to be creative in enlisting the public’s help in stepping up recycling efforts.

First, there’s value in old tires. They can be burned as fuel, retreaded and reduced to granulated rubber. Direct them into the right hands, and old tires can generate business. Second, communities should be encouraged to follow the lead of Windsor-Essex where computers and electronic equipment can be dropped off at no charge.

Ontarians don’t need any more special taxes, or an even larger government bureaucracy to ensure compliance. We need to encourage people that recycling is beneficial, and we all need to do our part. (Tire Review/Akron)

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