Canada is in a strong position to weather the financial challenges of an ailing U.S. economy, Finance Minister Jim Flaherty said Monday.

The Canadian economy has been "resilient in the face of economic adversity, Flaherty said during an otherwise upbeat address to the Economic Club of Toronto.

He spoke of the "psychological" effect that all the "negative media attention" on the situation south of the border may be having on Canadians, but said the Canadian economic reality was much better.

"We are not the United States," he said, pointing to Canada's healthier housing market, lower inflation and better job creation.

Flaherty acknowledged the woes of the manufacturing industry in Canada, but rejected opposition suggestions that the federal government bring in targeted spending programs — what he called "Band-Aid" solutions.

"Their idea of economic stimulus is you max out the national credit card," Flaherty said.

Ont. getting have-not status 'not in anyone's interest'

Flaherty repeated the government's plan to lower taxes further, continue paying down the national debt and keep the budget balanced.

"We do not believe in new taxes, including gas taxes," he added.

In the past, Flaherty has been sharply critical of the Liberal government in Ontario, saying it isn't doing its part to lower business taxes. But on Monday, he said he was "encouraged" by comments last week by Premier Dalton McGuinty about lowering the province's corporate taxes.

"It's not in anyone's interest" to see Ontario become a have-not province, Flaherty said, referring to a recent TD study that said Ontario could be eligible for equalization payments as early as 2010.