The Chief Minister says a wide range of options were discussed by the Council of Ministers before tax rises were included in this year's budget.
In the House of Keys last week he faced questions from Arbory, Castletown and Malew MHK Jason Moorhouse about tax increases.
Mr Cannan said spending cuts had formed part of discussions as well as higher taxes.
But he added Tynwald would be discussing the Island's future tax strategy soon:
Can you help museum find historic go-kart?
A museum's making a public appeal for historic Manx go-karts.
Trust in democratic institutions falling, says report
People's trust in the Island's democratic institutions fell last year - with only local authorities maintaining their levels.
Flouride varnishes for all primary children
Free fluoride varnish treatments will be offered to every primary school child from next year.
'Tough times' see Ramsey cafe close for winter
A café in Ramsey says it'll close for the winter and reopen next year.
Peel to get new laundrette?
A former hairdressing salon in the centre of Peel could become the town's next launderette, if a planning application is given the green light.
Manx Care asking people to wear masks in its facilities
Manx Care is asking people to mask up against the threat of flu and other illnesses in its facilities.
Tynwald to be urged to take action on homelessness
Tynwald will be asked to hurry up and take action on homelessness during its January sitting.
Tonight's Manxman sailing put back an hour
The Steam Packet Company say one of its sailings tonight will be delayed by an hour.
