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:
Is the Island ready for 100,000 people?
How will the Island's schools and health system cope with 100,000 people?
Set your alarms! Young Farmers Concert tickets on sale this weekend
Tickets to one of the Isle of Man's most-anticipated theatre events will go on sale this weekend.
Treasury Minister says a tax threshold rise could cost £2.5m
Treasury Minister Chris Thomas says more work would be done to calculate how much raising income tax allowances would cost the government.
Snow shuts the Mountain Road
The Mountain Road has been closed today due to heavy snow and dangerous driving conditions.
Stop putting knives in recycling, says council
Douglas Council is asking people not to put knives in recycling boxes.
Bee Gees to release limited-edition box set
The Bee Gees are to release a special collector's set of their biggest hits this month - including previously unreleased material.
Northern Irish politician criticises Manx visa rules
Changes to Manx visa rules for fishing boats have caused a political row in Northern Ireland.
Elective surgical unit opens at hospital
Manx Care says its new Elective Surgical Unit is now open.
