GOVERNMENT’S PUNTING OF MAJOR DECISIONS WILL ONLY WORSEN ECONOMIC UNCERTAINTY.

In the face of slumping business investment and a potential major improvement in U.S. economic competitiveness, the federal government has chosen to maintain the status quo, sitting on its hands and seeing how things develop in the United States. This leaves taxpayers, investors and entrepreneurs guessing what Canada’s economic policies will be.

For instance, the more than $140-billion projected run-up in debt will leave businesses and households uncertain about future tax hikes, and that uncertainty impedes investment and entrepreneurship today. This means many important decisions are likely being postponed.

Another key area of uncertainty is the timeline for ending deficit spending. Recall the Trudeau government to 2050, according to a recent Department of Finance report.

Again, Canadians are left wondering by this budget how much in taxes they will pay both this year and in the future — impeding investment and entrepreneurship.

Further uncertainty about taxes stems from the federal government’s review of the tax code. The budget revealed initial results of this review, which includes new revenues (nearly $5 billion over five years) from closing tax loopholes, “cracking down” on tax-planning activities, and eliminating tax credits.

This means Canadians will pay more taxes as a result of this review. A much better option would have used the extra revenue to cut tax rates broadly — something that would actually