NIAGARA FALLS, Ont. - Liberal Leader Michael Ignatieff denies saying he would have to raise taxes to pay off a soaring deficit, but he's not completely ruling out such a move either.

Ignatieff was reported to have made the comment at a Chamber of Commerce meeting in Cambridge, Ont., on Tuesday but when asked about it today, he told reporters he said "no such thing."

Ignatieff says once the recession is over, Canadians will demand the federal government deal with a sea of red ink.

He says options to do that include cutting spending by squeezing out all government waste or stimulating growth to increase revenues.

The Liberal leader says he was asked a hypothetical question Tuesday about what would happen if none of that works. He says no "honest" politician facing an 80 (b) billion dollar deficit would take anything off the table.

Ignatieff adds he'd do anything he could to avoid increasing taxes now, and hopefully later as well.

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