Liberal leader Michael Ignatieff found himself in some hot water yesterday after suggesting he’d raise taxesif he were in power to offset the rising deficit. He quickly clarifiedthat statement in London, Ontario today.
No one in their right mind wants to shut off the recovery by raising taxes in any form. Once recovery is underway and we are still stuck in a structural deficit, then we would need expenditure review, cutting back government expenditure.
We haven’t heard much economic talk from Ignatieff in a long while, so it’s interesting he made tax an issue on his current vote-hunting jaunt through southern Ontario, especially in this financial climate. Tim Powers, a conservative who writes a blog for the Globe and Mail says he may have just made his first major policy announcement(despite his correction), and it’s a curious one at that.
Yesterday, Iggy made it clear that the Liberals are going to raise taxes. This may be his first major policy pronouncement, if he sticks with it, and a strange one to make at that particularly to middle-class voters in Ontario, where he was speaking, who like most Canadians are not big fans of tax hikes.
I guess Iggy is living up to to his own self-described typology of a tax and spend Pearsonian-Trudeau Liberal. I am not sure if that economic orthodoxy is the prescription Canada needs at this point.