Canada’s Stricken Budget Stirs Talk of Digital, Wealth Taxes

Canada’s Liberal government may have to abandon its plan not to raise taxes this year.

Last week’s announcement that the fiscal year 2021 budget deficit will hit C$343.2 billion ($252.4 billion) sent shock waves. Finance Minister Bill Morneau hasn’t said yet said how the government will deal with a budget shortfall that’s up tenfold from the previous fiscal year.

The government has previously said its strong economy before the pandemic would help it move through the downturn. “We’re not worried about having to raise massive amounts of money from taxes,” Prime Minister Justin Trudeau said June 25.

But ...