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Capital Gains Tax (Rates)

Part of the debate – in the House of Commons at 12:36 pm on 23rd June 2010.

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Photo of Alistair Darling Alistair Darling Shadow Chancellor of the Exchequer 12:36 pm, 23rd June 2010

My hon. Friend's point about Canada is an important one. Yes, Canada reduced its deficit quite dramatically. As a result of that country's provincial set-up, a lot of the action was taken by the provincial governments rather than the national Government. It was taken, however, off the back of a growing US economy. Given the relative size of the Canadian economy compared with the US economy-it is much smaller than the Californian economy alone, for example-there is no doubt that the Canadians could do things on the back of their next-door neighbour's rising prosperity. Our problem is that our next-door neighbours, the EU, are not in the same position at all-indeed, quite the reverse. Equally, when Sweden was going through a similar exercise, it was helped by the fact that the economy of much of Europe was growing at the time.

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