There is a way out of the box, out of the corner. Parliament could come together in the national interest and create a new Defence and Security Tax (DST), collected on the same base as the GST/HST, using the same exemptions and rebates for low-income households. It could be set up to start at a time of Parliament’s choosing, say, January 2027, be ramped up in steps and sunset after ten years. Taxing consumption on a broad base, not income, is the policy path most consistent with our aspirations for greater economic productivity and growth.
