Dec 15, 2015
By Michael Kramer
The new government isn’t closing the door on the idea of raising the GST.
Finance Minister Bill Morneau was asked today whether he has considered raising the goods and services tax.
He said it’s necessary to go through the pre-budget process – so Canadians will have a sense of what they should expect over the next five years – and at this stage he’s not considering any tax issues – that weren’t included in the Liberal campaign platform.
The previous Conservative government lowered the GST by two percentage points during its decade in office – and that eliminated about $14 billion in annual revenues.
The Liberals have already backed away from their election vow to cap annual deficits at $10 billion over the next two years.
The government blames the sluggish economy and a weaker-than-expected fiscal situation – inherited from the Tories.