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Canada Considers GST Hike Amid Global Budget Deficits

10/3/2025

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Canada Considers GST Hike

Canada weighs raising the Goods and Services Tax (GST) from 5% to close a deficit, with the budget set November 4.
Business Council of Canada says GST increases are the least distortionary option.
Pittsburgh Mayor Ed Gainey proposes a $680 million 2026 budget with no hikes.
UK Chancellor Rachel Reeves hints at tax increases to address a £35 billion shortfall.

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Reeves Considers Tax Hikes

Chancellor Rachel Reeves reportedly weighs up to £45 billion in tax rises to cover a £30 billion shortfall, per Morgan Stanley.
Extending the freeze on income tax thresholds could raise £7–£10 billion, in line with Labour's manifesto.
Reeves faces business opposition; some government figures hint at manifesto breaches; Office for Budget Responsibility forecasts will shape the November 26 budget.

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Canada Considers GST Hike

Canada weighs raising the Goods and Services Tax (GST) from 5% to close a deficit, with the budget set November 4.
Business Council of Canada says GST increases are the least distortionary option.
Pittsburgh Mayor Ed Gainey proposes a $680 million 2026 budget with no hikes.
UK Chancellor Rachel Reeves hints at tax increases to address a £35 billion shortfall.

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