Between 2010 and 2023, Canada’s tax revenue as a share of GDP rose by nearly four percentage points – outpacing the average increase among 38 Organisation for Economic Co-operation and Development (OECD) countries and exceeding that of every G7 country except Japan, a notable outlier. With several senior governments – Ottawa, Quebec, Ontario, and British Columbia – running deficits well above historical norms, the question now is whether Canada’s next government can rein in spending. If not, mounting fiscal pressures may leave little choice but to raise taxes even further.
