OTTAWA - A new poll suggests most Canadians prefer the government avoid major tax and spending initiatives and focus instead on keeping inflation and interest rates low.
The poll by The Canadian Press Harris-Decima suggests a plurality in all regions -- 43 per cent overall -- preferred the latter response to the current economic downturn.
And twice the number of respondents, or 31 to 17 per cent, said infrastructure spending was a more effective approach than tax cuts.
Spending was more popular than tax cuts among respondents in all regions other than Alberta, while Conservative voters were more likely to view tax cuts as being as effective as spending initiatives.
Finance Minister Jim Flaherty is to deliver a federal budget Jan. 27. He has warned that Canadians should be prepared to see a substantial deficit as Ottawa tries to minimize the impact of the global recession.
Flaherty has indicated he will look to both tax cuts and infrastructure spending in his plan. He's been conducting cross-country consultations in an effort to come up with other innovative ways to combat the recession.
The survey suggests support for more government intervention, including spending in areas like infrastructure or tax cuts, increased among higher-income respondents.
More than half, or 52 per cent, of those surveyed who earned less than $40,000 annually preferred the government avoid major tax or spending changes and focus instead on the economic fundamentals. Just 35 per cent of those making more than $100,000 felt the same way.
"There are clear divisions among Canadians on the role of government in this economic climate, and these divisions pose difficulties for Minister Flaherty and the Conservative government," said Jeff Walker, senior vice-president at Harris-Decima.
"Among some of the key parts of the Conservative voter base, tax cuts are a relatively popular measure to help the economy," he said. "But among most other Canadians, focusing on just keeping interest rates and inflation in check is the preferred approach, followed by increased spending.
"While everyone likes the idea of a tax cut, many Canadians aren't sure it is the best way for government to focus its attention in order to assist the economy."
The survey of just over 1,000 Canadians was conducted Jan. 8-12 and is considered accurate to within 3.1 percentage points, 19 times in 20.
