Bombshell: PM Ignatieff may hike the GST in the future

In a one-on-one interview today with Citynews’ Richard Madan, Liberal leader Michael Ignatieff said that he won’t take a GST hike off the table in dealing with the economic crisis.

Madan: “On the tax side, is it time to boost up the GST to its former levels of 6%? Do we need to that? Do you support raising the GST?”

Ignatieff: “I won’t be drawn at the moment where Canadian taxpayers and consumers are struggling with their bills, jacking up GST doesn’t sound to me like the greatest idea. But, let me be clear here: If we are in a deep deficit in year 3 or 4 you can’t exclude tax increases to get us out. Canadians understand how bad deficits are. So I’m not going to take a GST hike off the table… later, I just think it would be a bad idea now, in the recession.”

Richard Madan has the video.



  • Devin Maxwell


    Would it be prudent and effective leadership for Ignatieff to say that there will never be a tax increase. Kind of like Stephen Harper and Jim Flaherty promised to never allow a deficit on their watch?

  • Kelly Jamieson

    Starting with the tax sheltered education savings account proposed by the Liberals, right though the election Harper was always warning of the “Liberal deficit” that lurked around the corner. Its only fair the Harper now wear the shame of running a deficit he described as a bad thing for so long. Part of taking that breath of reality is acknowledging this deficit is a direct result of the conservative right in North America to failing intervene in the banks and automakers headlong dash to bankruptcy sooner. A deficit is now necessary and taxation to pay for it must follow.

  • Tamir B.

    Why does the left always fall back on increasing the GST when questioned about the upcoming deficits?

  • Soccermom

    This will be a Coalition Induced Budget ™. You guys begged for the mess, you guys will wear the mess. Next election, watch out, “Liberal”. That capital L may stand for Loser very soon. Heh heh heh.

  • Michael

    Because the free market, if left unchecked, always produces to little of some things (employment, for example), and too much of others (pollution, for example.) Ergo, the government must have programs and regulations to compensate for these shortcomings. Taxes are the means of doing this. They are essentially a type of social control.

  • hollinm

    The fact is Harper did not want a deficit as you suggest. He is a fiscal conservative. However, he is also a pragmatist and knows that any cuts to government spending would not fly with a minority parliament given he was facing three left wing opposition parties. Once again you want to conveniently blame Harper for what is happening in Canada and globally. You can blame it on right wing ideology if you want but the fact is nobody in the world and I will repeat in case you didn't read it the first time nobody predicted the financial and economic meltdown taking place around the world which started in the U.S. and spread world wide. Canada was just doing fine but with the U.S. financial collapse and the ensuing aftermath there was no way any Canadian government would have not been affected given 85% of the goods produced by the Canadian economy are exported to the U.S. I am sure Harper in his heart of hearts would rather just let the market dictate what was to happen and therefore avoid any significant increase in the deficit. However, once again with the left wing opposition parties demanding he do something he is forced to do things which are against his core beliefs.
    Canadians by far do not agree in bailing out the auto sector. They are in a business that is going through a restructuring and there is no way it will not be downsized significantly no matter how much money is given to them. That means significant job losses. However, with Layton out there yelling and screaming and the left wing media and pundits yelling do something Harper is acting against his better instincts I am sure.
    One final point I would much rather that Harper be in charge than that silly Dion and the two other stooges. Can you just imagine what would happen to the Canadian economy should the Bloc be given control over the national government.?

  • Tamir B.

    Good thing Ignatieff won't be running our country for a while to come. Given recent polls that have been conducted, Harper and his Conservatives would win a majority government if an election were to be held right now.

  • Tamir B.

    Good thing Ignatieff won't be running our country for a while to come. Given recent polls that have been conducted, Harper and his Conservatives would win a majority government if an election were to be held right now.