The World : Taxes Going Up in Canada

The Canadian government announced personal and corporate tax increases, combined with federal spending cuts, aimed at slicing the national deficit by $3.25 billion in the fiscal year beginning April 1. Personal and corporate taxes will rise by 3% in 1987 and the federal sales tax will be increased by 1%. In presenting the new budget to the House of Commons, Finance Minister Michael Wilson forecast a deficit of $21 billion for the new year, down from nearly $25 billion this year. Wilson said the government is committed to further reductions that would chop the deficit to $16 billion by the end of the decade.