Carney budget to focus on taxes, shift from Trudeau era - National Post
Minister of Finance and National Revenue François-Philippe Champagne attends the 2026 pre-budget consultations, and hold a roundtable discussion with the Canadian Chamber of Commerce in Ottawa on Monday, July 6, 2026. Photo by HYUNGCHEOL PARK /PostmediaArticle contentOTTAWA — Tax reform designed to spur economic growth will be a key pillar in Prime Minister Mark Carney’s second budget, government sources say, signalling another policy shift in the governing Liberals from the Justin Trudeau era.
National Post has learned that the budget, to be unveiled next Thursday, is expected to prioritize tax measures to spur innovation and improved competitiveness as Carney attempts to boost investment and Canadians’ standard of living. Sources say there will also be measures to reduce the red tape that costs businesses time and money.
“It’s a growth and competition budget,” said a senior government source. “We’re trying to create an investment supercycle in Canada.”
Political Hack gets at what’s really going on behind the scenes on Parliament Hill. Wednesdays and Fridays.
Many economists say amending, perhaps even overhauling, Canada’s much-maligned tax system should be a key element in the recipe to improve productivity and growth, which translates into higher wages and jobs.
As reported last week in National Post, the budget will also focus on improving the landscape for Canada’s small and medium-sized businesses. Many economists and others outside the government also expect that Carney’s 2025 campaign promise for a broad review of corporate tax policy, also with an aim to encourage investment and economic growth, will find its way into the Nov. 5 financial plan.
Another key block of Carney’s economic plan, the new productivity mega-deduction that was announced last month at an international investors’ summit in Toronto, may also be formalized as part of the budget. It’s not yet clear if the Liberals will include that tax measure as a budget item or formalize it through separate legislation.
Carney’s primary aim is to improve the Canadian economy’s performance after years of lagging its G7 counterparts. His government’s action to date on that front are in stark contrast to his Liberal predecessor, Trudeau, who focused more on moves to improve economic equality.
