ADVOCACY IN ACTION

City & Region

UNAFFORDABLE TAX INCREASESS

Local Government

There are many reasons why Mississauga is Ontario’s second largest local economy, as reported by Mississauga’s Economic Development Office. After all, the city represents 5% of the province of Ontario’s population and 7% of Ontario’s economic output.

Factors working in Mississauga’s favour are the highly educated labour force and the diverse array of local businesses ranging from small businesses and startups to large multinational corporations.

One factor that needs to be considered are local business property taxes. It is on this issue that MBOT has been active over the past year, especially recently. At the time of CONNECT’s publication deadline, the combined business tax increase considered by the City of Mississauga and Region of Peel was in excess of the inflation rate. MBOT advocated at budget committees for both the City of Mississauga and the Region of Peel that the increase be no greater than the annual rate of inflation, which has been roughly 2% in recent months.

To learn more about MBOT’s work on issues such as the municipal budget, please email bmcdermott@mbot.com.

Provincial

Provincial Government Nearly Balances Books

There is a time and a place for governments to run deficits. With economic growth being uneven over the past year, is now the time to balance the books? The Ontario Government thinks so.

In fall, 2024, the government released its public accounts for fiscal year 2023-24. The final result was a deficit of $647 million for an overall budget of $206.6 billion.

Here are some key budget facts and figures from fiscal 2023-24:

Health Care $85.5 billion (41.4% of the overall budget) Education $38.8 billion (18.8% of the overall budget) Interest on the debt $11.4 billion (5.5% of the overall budget)

To learn more about the Ontario Government’s public accounts for 2023-24, please visit: Ontario Releases 202324 Public Accounts | Ontario Newsroom

FEDERAL

25% TARIFFS?

In November, President-elect Donald Trump threatened to impose a 25% tariff on Canadian and Mexican exports to the U.S. This is an increased tariff beyond the 10% tariff that Trump proposed during the 2024 Presidential election campaign.

The Canadian Chamber of Commerce (CCC) has come out against the proposed tariffs arguing that they would reduce both countries’ GDPs as well as Canadians’ and Americans’ incomes. Specifically, the 25% tariff would result in a 2.6% reduction in GDP and cost each Canadian $1900 annually. U.S. GDP would shrink 1.6% with a reduced average income per American of $1300 annually. Details for the CCC study can be found here: Trump’s 25% Tariff Threat: New Analysis Reveals Severe Economic Fallout for Both Canada and the U.S. - Canadian Chamber of Commerce

The CCC and MBOT will have heightened engagement on the tariff issue in the coming months as President-elect Trump takes office. One key point that the CCC and MBOT will be emphasizing is that the trading relationship between Canada and U.S. is mutually beneficial and keeps costs down for businesses and consumers.

Labour Disruptions Throughout Canada

If the early 2020s were the pandemic years, 2023-24 have been the years of labour stoppages.

Throughout the past year, the Canadian Chamber of Commerce (CCC) and MBOT have been actively supporting business and the economy by opposing labour disruptions.

Port of Montreal

Mississauga’s economy is heavily integrated internationally. One of the entrepots used by many Mississauga businesses is the Port of Montreal. In light of this and the broader economic impacts nationwide, MBOT signed a letter authored by the CCC in support of ending the labour disruption at the Port of Montreal: Letter to Minister of Labour Steven MacKinnon Regarding Labour Disruption at Port of Montreal - Canadian Chamber of Commerce

Canada Post

Similar to the situation at the Port of Montreal, the strike at Canada Post has caused immeasurable challenges for businesses and the economy nationwide. In support of the local business community, MBOT signed and submitted letters to six Mississauga MPs requesting that the federal government end the strike.

What it means for Canada

In recent years, consumers and businesses have seen how the supply chain can be disrupted. Whether it has been through bottlenecks in East Asia or the Panama Canal, or through war in hotspots around the world, ensuring an efficiently-functioning supply chain is essential to our livelihoods. Today, in addition to problems internationally, there are disruptions domestically. Indeed, Pascal Chan, Senior Director, Transportation, Infrastructure & Construction at the CCC, said that Canada is “effectively advertising to the world that Canada is closed for business.”

MBOT hopes that government officials, union leaders and management heed the lessons of recent years and work to avoid labour disruptions in 2025.