Bill Morneau sure is stubborn.
The finance minister again passed on an opportunity to announce an overhaul of the tax code, despite overwhelming pressure from academics and business lobbyists to do so. The levy on corporate income? Unchanged. And he apparently could care less about balancing the budget, even though Canada’s economy is long past needing fiscal stimulus.
The budget update Morneau tabled in the House of Commons on Nov. 21 shows that the fiscal shortfall was on track to narrow to $9 billion within five years from $19 billion this year. Ottawa decided to use stronger revenue to keep spending: various tax cuts and investments will keep the deficit in double digits through at least 2023, which will be the 30th anniversary of the election of the government of Jean Chrétien and Paul Martin, the former Liberal leaders who ended a generation of fiscal profligacy.
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