George W. Bush's aggressive package of tax cuts will create new pressure on Ottawa to respond in kind, perhaps as soon as the next federal budget, economists and government officials said yesterday.
The White House said yesterday that it plans to cut personal and corporate taxes by $600-billion (U.S.) over the next 10 years, a blueprint that critics quickly denounced as a windfall for corporations and the rich, but that stock markets hailed with a powerful rally.
. . . Canada has been aggressively cutting personal and corporate taxes in a bid to catch up to the U.S., but the new Bush plan once again puts the ball in Ottawa's court, economists and government officials said.
"I don't think they can ignore it," said Don Drummond, chief economist at Toronto-Dominion Bank. "The debate on tax cuts in Canada has been pretty quiet over the last year, almost two years; this will rev it up."
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