Canada’s government spending is now on unsustainable path, warns PBO Financial Post's reporting is a bit, what's the word? alarmist? Things really aren't so dire. Canada’s sub-national governments need a combination of new revenue or spending cuts totalling 1.5 per cent of GDP to put themselves on a sustainable path, up from 1.4 per cent last year — what the PBO called a “modest deterioration.” That would require a combined $30.2 billion in spending cuts or tax increases from provinces, territories, local and indigenous governments. You know, the major, important thing is, that no one ever really mentions, is Canada will always have a modest to wealthy tax base. And also, Canada prints its own money. That's a major strength. It means Canada can always repay its dept, even if the value of its currency falls. $30 billion? It shouldn't be an impossible amount for the government to raise. It should be a multi-pronged approached. Modestly raise taxes, starting fro...
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