Ottawa could balance its budget simply by sticking to its spending plan of two years ago. It should do that, then cut taxes

You can save this article by registering for free here. Or sign-in if you have an account.

The Trudeau government is like a band that only knows one tune: more spending/higher taxes.

It recently imposed a capital gains tax hike. Part of the rationale was to reduce the debt burden on future Canadians. “Canada could finance these critical investments by taking on more debt, but that would place an unfair burden on younger generations,” Finance Minister Chrystia Freeland said in announcing the increase. “Fiscal responsibility matters.”

Subscribe now to read the latest news in your city and across Canada.

Subscribe now to read the latest news in your city and across Canada.

Create an account or sign in to continue with your reading experience.

But if the government is really worried about deficits and debt, couldn’t it cut wasteful spending instead? At the Canadian Taxpayers Federation, we commissioned a Leger poll asking Canadians that very question. The response was that 54 per cent of us prefer the government to cut spending, while only 23 per cent favour the capital gains tax increase. The rest were unsure.

That 54/23 breakdown means that among those who do have an opinion, 70 per cent of us — more than two to one — prefer reducing spending to increasing capital gains taxes.

Here’s where the government should cut:

If........

© Financial Post