Broad-based tax cuts not the answer

There is a familiar political reflex in times of economic strain: cut taxes and promise relief. It sounds simple, immediate and, on the surface, compassionate.

But when governments are already mired in structural deficits — as both Manitoba and Ottawa are — across-the-board tax cuts are not prudent policy. They are expensive distractions that risk making a bad fiscal situation worse, while doing little to help those who need it most.

Manitoba’s decision to expand its provincial sales tax exemption on groceries — including items that stretch the definition of “necessities,” such as junk food — is a case in point. So, too, is federal Conservative Leader Pierre Poilievre’s call to suspend federal fuel taxes for the rest of 2026 in response to rising gas prices.

Both measures are rooted in the same flawed logic: that broad tax relief is the best way to ease affordability pressures. It is not.