Working several blue-collar jobs he first became involved in politics as a volunteer with local MP Charles Caccia.
In 1985 he was hired the executive assistant to Councillor Betty Disero and he remained in the office for several years.
In the 2010 Toronto election, Palacio won re-election over six other candidates: Brian Bragason, Tony Letra, Maria Marques, Kar Rasaiah, Jonah Schein, and Ben Stirpe.
On June 11, 2015, Palacio supported the Hybrid option for the Gardiner Expressway[3] Changes to the City of Toronto ward boundaries imposed by the Ontario Provincial Government of Doug Ford resulted in the disappearance of former Ward 17 Davenport in the 2018 municipal election.
Palacio initially announced he would run for re-election in the new larger Ward 9 Davenport in the 2018 Toronto election[4] but ultimately withdrew his candidacy.