Financial Post: If Ottawa needs to raise revenue, 'overwhelming consensus' is to use GST, businesses say
Canada’s top business leaders and economists say if Ottawa needs more revenue to fund new initiatives, “there is an overwhelming consensus that it should use the (GST), because it is the least distortionary option,” according to a Business Council of Canada report released Wednesday. The consultation, held ahead of the Nov. 4 federal budget, found that while most respondents believe “the federal government faces a spending problem, not a revenue problem,” rising fiscal pressures from debt, slower growth, major investments and NATO defence commitments make higher revenues unavoidable. One respondent warned, “I cannot see how the increase in defence spending to 5% of GDP can occur without a rise in revenue,” while others urged a broader fiscal anchor strategy and a review of government spending.
