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Macleans.ca

Canada’s magazine

That old deficit war re-revisited: the tale of the taxes

How much can a government afford to cut spending if economic growth is tepid? It’s a question Finance Minister Jim Flaherty must be asking himself these days, poor guy. No doubt Flaherty would like to keep cutting to shrink the deficit, but as the economy weakens, he’s coming under pressure for another round of stimulus spending.