The author argues that tax cuts and spending increases should come only as dividends of debt reduction, and that an aggressive debt-reduction strategy should be implemented now. He proposes a debt-reduction tax irrevocably directed toward the repayment of the principal of our national debt. As a legislated tax policy solution to debt reduction, the tax would ensure regular and predictable debt repayment, increase public awareness of the need to reduce the debt, enhance the federal government’s budgeting flexibility and accountability for surpluses, and partially redress the inequity of intergenerational wealth transfer. Meaningful debt reduction would enable Canada to maintain its fiscal and economic sovereignty, offer a globally competitive tax structure to investors and workers, and ensure a high quality of life for all citizens.