|
|
Health care costs also seem certain to keep rising in real terms, but as with defence spending, we see no valid reason for these cost pressures to lead to an increase in overall tax rates. Any move to introduce a new tax, even if supposedly dedicated to health care, in our view, would be a violation of this promise. Aside from the practical difficulties involved in administering dedicated taxes, raising tax rates is simply, in our view, the wrong way to ensure that Canada can sustain and enhance public health care. Fiscal discipline and tax cuts have played a vital role in making Canada the fastest growing economy in the G-7, and it is this growth that is projected to boost annual federal tax revenue by $43 billion within the next five years. Indeed, to reinforce Canada's economic growth and to drive tax revenue even higher over time, the government should consider further tax cuts and not tax increases.
|