The opinions and recommendations in this report, and any errors, are those of the authors, and do not necessarily reflect the views of the publishers or funders of this report. [...] A New Revenue Tool: The case for a Greater Toronto and Hamilton Area sales tax Introduction This paper looks at how much revenue could be raised from a sales tax in the City of Toronto or in the Greater Toronto and Hamilton Area (GTHA). [...] A 2 per cent sales tax in the City of Toronto would raise a billion dollars and a 1 per cent sales tax would raise half a billion dollars, if there were no change to the HST credit. [...] But because sales taxes have a bigger impact on low- income people, some of the revenues could be used to enhance the prov- incial sales tax credit in order to offset the impact of the increased tax for those with limited incomes. [...] To illustrate the potential impact of increasing the tax along with an en- hanced tax credit, we have modelled a 25 per cent increase in the sales tax credit (rising from a maximum of $307 to $380 per person) for a 1 per cent increase in the sales tax and a 50 per cent increase in the sales tax credit (rising from $307 to $460) for a 2 per cent sales tax increase.