Carney says no tax hikes needed to fund $200B defence budget

Prime Minister Mark Carney on Wednesday said Ottawa would pay for its 5% NATO defence spending commitment by growing the economy, not hiking taxes. No new sacrifices are expected of taxpayers under cabinet’s plan to increase defence spending sevenfold, he said. Defence spending that totaled $34.6 billion last year is targeted to surpass $200 billion annually by 2035, according to Blacklock’s Reporter.“The new NATO targets of 5% of Gross Domestic Product (GDP) are tailored to address new threats and challenges,” said Carney.“The capability required to meet this moment has been the driving factor for this moment.”.NATO pledges 5% of GDP for defence by 2035, Trump claims victory.NATO countries signed a Defence Investment Pledge to spend 5% of annual economic output on “core defence” and military preparedness within a decade. Canada last year spent less than 1.5% of GDP on national defence.Currently only one NATO member spends near the 5% target, Poland, at 4.1% of GDP. American military spending is 3.4%.“We are protecting Canadians against new threats,” Carney told reporters.“I wished we didn’t have to but we do have to. It is our core responsibility.”“To what extent do you think you have public support for what defence experts are saying would be the largest increase in defence spending since the Second World War?” asked a reporter.“Absolutely we can establish the public support for that,” replied Carney.“Can you outline what sacrifices you are expecting Canadians to make?” asked a reporter.“Right now the people who have been making sacrifices have been the men and women of the Canadian Armed Forces,” replied Carney.“The investments we’re making in defence and security, broader security given the new threats Canada faces, we’re not at a trade-off. We’re not at sacrifices in order to do those.”.WATCH: Carney tells US media Iran’s strikes on US bases ‘proportionate, de-escalatory’.Asked what level of deficits, tax hikes or cuts to social programs were required to meet a $200 billion annual defence budget, Carney replied: “We will grow this economy.”The prime minister in his winter campaign for the Liberal party leadership said no cutbacks were required to increase military spending.“On spending, would my government cut any of the programs that have been in put in place, for example on dental care, on child care?” Carney said to reporters February 5.“Absolutely not. We are very proud of those programs. They are necessary. They are helping millions of Canadians.”“It’s not just about setting the target between now and the end of the decade. It is also about spending that money wisely and effectively and above all, as much as possible, potentially the majority of the increase in that money spent here in Canada as opposed to the United States.”US President Donald Trump was the first to propose the 5% NATO spending target last January 23.“I am going to ask all NATO nations to increase defence spending to 5% of GDP which is what it should have been years ago,” he said.

Carney says no tax hikes needed to fund $200B defence budget

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