The battle over balanced budgets could leave Trudeau with a voter deficit

The battle over balanced budgets could leave Trudeau with a voter deficit

By Shachi Kurl, Executive Director

Trudeau’s big gamble. Prime minister rolls dice on spending. Government’s deficit double-down.

Choose whichever casino-related analogy you like, but this week’s announcement of deficit-inflating tax cuts aimed at stimulating business investment does indeed represent a risk, based on three things.

First, whether – and for how long – these new tax write-offs allowing manufacturers to recover expenditures on new equipment and green energy will actually bolster the Canadian economy. Second, what happens with growth in Canada in the near to medium future. And third, how voters feel about it all.

The Liberal premise is clear: In the wake of significant cuts to business tax rates south of the border, the federal government felt the need to act to stay competitive and keep investment here. But will these actions provide a shot in the arm to the Canadian economy?

For the rest of this piece, please view it on the Ottawa Citizen’s site, where it was initially published.


No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Only registered users can comment.

Sign up for the Angus Reid Institute Mailing List

Receive our latest releases first