A few years ago, before the recession, the GST was cut by two percentage points. According to some economists, this cost the federal government $12 billion in revenue. Recently, the Green Party has suggested raising the GST back up to the previous level, restoring the $12 billion in revenue, with that money being sent to municipalities. Nobody likes taxes, but this idea makes sense in many ways, and would solve the perennial problem of underfunding in municipalities.
Canada now has a population of about 35 million people, so $12 billion means $342/person. If municipalities received transfer payments based solely on population, the City of Toronto (pop: 2.48 million) would receive $848 million. That would eliminate Toronto's deficit of over $700 million, with funds to spare for long-neglected infrastructure repairs. (You may have heard of the Gardiner Expressway dropping chunks of concrete on the cars travelling under it?)
The 2% increase in sales tax (call it the 'Municipal Sales Tax' or 'MST') would direct tax dollars to where they are most desperately needed. Roads will be repaired. Water treatment plants upgraded. Community centers, homeless shelters, schools and libraries renovated and expanded. Thousands of jobs would be created, almost immediately. This could be the biggest public works project in Canadian history.
Nobody likes taxes. But nobody likes roads with giant potholes, or tap water that is unsafe to drink, either. Everyone wants good community services, but that costs money. A 2% increasing in the GST/HST is the most logical way to pay for it.