On the eve of the new Liberal government’s first federal budget, the key is to get incentives right at home.
Justin Trudeau
Canada’s top combined personal income tax rates are now among the highest in the industrialized world.
The new federal Liberal government will table its first budget next week, with media reports suggesting a deficit triple the amount promised during the election campaign.
Increased OAS spending means less spending elsewhere, higher taxes, and/or more government borrowing.
The TD forecast shows a persistent federal deficit of approximately $30 billion a year for the foreseeable future.
Per capita federal net debt (in 2015 dollars) grew from $577 in 1870 to $19,302 in 2015.
These voluntary relationships clearly benefit the participants, and perhaps that is why the strident opponents resort to hyperbole and fear-mongering.
Prime Minister Trudeau recently mused that not only will the $10 billion deficit ceiling be broken, but the return to a balanced budget by 2019/20 is now in question.
Prime Minister Trudeau’s remarks at the World Economic Forum in Davo unfortunately reflect an attitude of discomfort with Canada’s resource economy.
The federal government may speed up spending on infrastructure projects in Alberta and Saskatchewan.