Tax increase or spending cut? - Macleans.ca

Tax increase or spending cut?

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More from the Parliament Budget Officer, this time in an interview with Canwest.

Page also believes that the deficit can be eliminated only with “significant discretionary actions,” the least painful of which, in his view and the view of other private sector economists, would be to increase the country’s consumption tax — the GST.

“It would be very difficult to see a surplus within the next five years without significant discretionary actions to bring it back into balance,” Page said in an exclusive interview with Canwest News Service and Global National on June 25, just as he was putting the finishing touches to the forecast he will publish Wednesday.

Loyal readers may remember this discussion.