Swiftonomics appear to be too taxing an idea for Olivia Chow

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Memo to Toronto Metropolis Corridor: You’ll be able to’t have it each methods.

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You’ll be able to’t have your cake and eat it, too.

Toronto is quickly to expertise the phenomenon that’s Taylor Swift, bringing actually a number of hundred thousand followers collectively for six exhibits over 10 days.

Cash, cash, cash and town says it can get none of it.

Mayor Olivia Chow posted, “If Taylor Swift comes — the HST alone is excessive. We don’t get a penny of it. It’s nice for the economic system, however by way of income, we truly find yourself paying out as an alternative of getting any of that profit. If I may get one cent of what Taylor Swift is producing in Toronto, oh my God, I might have achieved it yesterday.”

Maybe she meant 1%.

What in regards to the resort tax? Doesn’t that 6% imply something?

Possibly. Possibly not.

The GTA has 44,180 rooms with 16,788 within the downtown space. All are prone to be booked at capability and numerous them at elevated charges. Traditionally, Toronto’s motels would possibly anticipate to be 75% stuffed in November.

So town collects 100% of the resort tax on the extra 25% of rooms booked because of Swift and tax on the elevated room charges on the remainder of them.

Rooms are reportedly going for as much as 10 occasions the common charge. As a “again of the envelope” calculation, even at $400 a room for downtown solely — a lot lower than reported — over 10 days, that’s over $4 million in tax.

That may be a tax profit, I argued on X, whereas others informed me town doesn’t get that cash.

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I’m informed technically it goes to Tourism Toronto, which is owned by the resort affiliation as an unbiased vacation spot advertising and marketing company. That looks as if a metropolis profit, advertising and marketing town to vacationers, but when they wish to declare it doesn’t go instantly into metropolis coffers, backing Chow’s poorhouse argument, OK.

Many will agree. However right here is why I say they will’t have it each methods.

If town has no solution to acquire off the financial engine that’s Swift, they need to dwell with the identical argument when the World Cup rolls its ball into city in 2026.

In each circumstances, the province and the federal authorities stand to rake in beaucoup bucks. The HST will likely be monumental in each circumstances.

Within the case of Swift, she didn’t demand a bribe. She didn’t make town rebuild the Rogers Centre.

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FIFA, the corrupt controlling entity within the soccer world, tuned us up for an admitted $380 million. That quantity may rise as a result of as you realize authorities likes to dribble the frustration out in drabs. The unique estimate was lower than $50 million.

The town went forward underneath the notion that the feds and the province would soar to their demand and it didn’t occur. The province got here in with $97 million and the feds with $104 million. That leaves Toronto admittedly quick about $180 million thus far.

A determined extra resort tax devoted to the World Cup over 14 months — which makes non-soccer folks pay for over a yr — is predicted to herald $57 million.

Oops. Nonetheless method quick. With a determined tax to cowl for failure.

As a result of, in any case, town will get nothing out of it.

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