The federal budget may include corporate, wealthy taxes as part of new spending, the expert said

The federal government is set to unveil its budget on Tuesday, and along with the billions in spending promises already made, experts predict the fiscal plan will come with more taxes.

The finance minister was Chrystia Freeland vowed to stand on its fiscal defensive rails despite the high cost of housing and affordability.

The finance minister said that the middle class will not be taxed in the upcoming budget, but did not rule out the same for other groups.

Robert Asselin, senior vice-president of policy at the Business Council of Canada and a former adviser to former finance minister Bill Morneau, predicts either a new windfall tax for big companies, big corporate taxes or a wealth tax on the wealthy.

“Obviously because the government can't rein in spending, they're going to raise taxes,” he told 680 News Radio Toronto on Monday.

According to Asselin, targeting companies hurts productivity and the economy, and those costs are passed on to the consumer anyway.

He said they could pair this with layoffs or postponing other planned spending.

“When you do things like this, a shell game, you're still pushing structural spending into the last years, future years, and the bill is going to be left for other governments or other future generations to pick up later, and that's not good,” Asselin said. said.

He also noted that the federal government needs to be careful in spending this budget because they don't want to cause the Bank of Canada to avoid financial losses. A decrease in interest rates, which may occur at the beginning of the season.

The budget will be discussed at 4 p.m. ET. Watch live CityNews 24/7 and listen to the latest updates 680 News Radio Toronto.

With Canadian Press files