OTTAWA – The Liberal government cannot count on the tax increases they have planned to cover for reckless spending, creating a recipe for higher taxes on the middle class and mountains of new debt, Opposition Finance Critic Lisa Raitt said today. Raitt was referring to a recent report from the C.D. Howe Institute, along with comments from the Finance Minister in which he refused to commit to the Liberal campaign promise of yearly deficits of no more than $10 billion for the next three years. “In less than two months, the Liberal government has spent the country back into a deficit this year, and given up on any plan get back into surplus. And yesterday, the Finance Minister backed away from the only limits his government has even pretended to set for their planned deficits,” Raitt said. “The C.D. Howe report tells us precisely why: the Liberals’ planned tax increases aren’t likely to get them the revenue they need to pay for their reckless spending plans. So it’s little wonder the Liberals now have to throw away their own $10 billion deficit limit, along with the three-year timeframe they promised to balance the budget again.” The report from the C.D. Howe Institute says: “The result of the federal tax changes could be national tax receipts falling short of commitments for both levels of government by more than $4 billion, meaning higher taxes elsewhere, unplanned spending cuts, or larger increases in government debt.” Raitt said, “We know the Liberals never campaigned on anything that resembled spending restraint. As the C.D. Howe Institute says, the result can only be higher taxes elsewhere, or larger increases in government debt. That means more money out of the pockets of middle class families, and more debt their children and grandchildren will have to pay off later. The only party in Canada that will stand against this reckless fiscal policy is the Conservatives.”