(Ottawa) Canadians can expect what the next budget will look like following the federal government’s announcements that have multiplied over the past three weeks.
But all of these announcements, including billions of dollars in spending on housing and national defense, raise important questions.
How will the government pay for all this?
Finance Minister Chrystia Freeland promised the deficit would not grow. She also ruled out the idea of increasing taxes for the middle classes.
However, it has made no commitment for other categories of taxpayers. Observers suspect that the new programs will be financed by new taxes imposed on big companies and wealthy people.
The Business Council of Canada has already argued that this path would harm investment at a time when Canada is experiencing productivity problems.
However, Tyler Meredith, a former director of strategy and economic planning at Mme Freeland, points out that the imposition of new taxes should not be a surprise to anyone since the new programs announced will cost a lot of money.