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Canada’s ‘tax the rich’ plan leaves big debt risk untouched

admin by admin
October 18, 2021
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Canada’s ‘tax the rich’ plan leaves big debt risk untouched

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Where Is the Economy Heading? Velocity of Money Provides Clues

OTTAWA, Oct 18 (Reuters) – Prime Minister Justin Trudeau’s new government is set to impose higher taxes on Canadians, which will help fund some campaign promises but are not broad enough to also start paying down the country’s record levels of debt, leaving Canada vulnerable to the next economic crisis, analysts say.

This could be a risky strategy for the country, which piled on new debt at a faster pace than any of its Group of Seven peers during the pandemic. The high level of indebtedness could limit Canada’s ability to manage long-term challenges that require massive government funding, like transitioning from a fossil fuel-reliant economy to a green one.

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