It was the uncertainty of what, if any, actions by the U.S. on trade and taxes that stopped the Liberal government from significantly raising taxes, by closing “so-called loopholes” that benefit higher income Canadians.
With the Trump administration promising major tax cuts, paired with a border tax that could potentially severely hamper cross-border trade, Finance Minister Bill Morneau was forced to bide government time before implementing new higher taxes.
But as soon as the direction is clear of what the U.S. is going to do, the government will issue a white paper outlining plans to take billions more out of higher income Canadians’ pockets.
And nowhere in the budget was there a hint of reining in spending, even as deficits approach levels not even contemplated last fall.
All in all, it’s wait and see, but your wallet will be a lot thinner the moment the Liberals are able to unleash a punitive tax policy.