Tension between Toronto and Trudeau government inflamed by 2024 tax hike

As Toronto continues to gaze inward at its own tax proposals, a local Liberal MP has shared their outrage at the city’s decision to separate a portion of its proposed tax increase to blame the federal government for.

In the opening days of the budget process, the city’s budget chief warned that if the federal government didn’t commit to addressing the growing issue of shelter costs for refugees and asylum seekers, Toronto would have no choice but to increase taxes by an additional six per cent.

Calling it “the Federal Impacts Levy,” the tax is by design intended to elicit a federal response.

On Tuesday, Etobicoke Centre Liberal MP Yvan Baker responded to the threat angrily, taking a swing at Mayor Olivia Chow and accusing her of failing to find savings elsewhere.

“I’m outraged for a number of reasons. First, I’m outraged because if you have budget problems, the first thing you should do is look for savings,” Baker said. “Olivia Chow didn’t do that.”

Baker also repeated a line repeated for months by federal spokespeople that the city has received record funding from the Trudeau Liberals, including funding last summer to help cover the refugee crisis that was spilling over onto sidewalks.

City councillors have been quick to counter that the money the city received wasn’t enough at the time, and the needs have only grown since then. Outside a committee room, budget chief Shelley Carroll said the issue has been growing since the city first began engaging with the Trudeau government last spring. Hundreds of people fleeing persecution continue to arrive at Pearson airport, and Carroll pointed out that Toronto doesn’t have the jurisdiction to manage the influx.

“It’s now 5,800 (refugees) and it is growing every week and that is a