Roundup: More tax change caterwauling

Another day, and more moaning about the proposed small business tax changes, which have now been equated to “class warfare”! Yes, a pair of tax lawyers wrote in the Financial Post yesterday about how the ability for small business owners to split their income with stay-at-home spouses was great policy because it was first proposed back in 1966. I kid you not. Fortunately, economist Kevin Milligan is back after a few days offline, and can help sort some of this out.

And then there’s this kind of silly thinking:

Government is not a business. It cannot be run like one, no matter how many times people like to chant it as a slogan. It fundamentally does not operate in the same way, nor can it ever run in even approximately the same way. The absolute fundamental principles do not translate because government has no bottom line. The sooner people grasp this, the sooner we may have more rational discussions on how to better operate government in a sane and rational manner.

Meanwhile, Andrew Coyne is unconvinced by all of the caterwauling about the proposed changes, not seeing the moral advantage that small businesspeople are apparently owed, and suggests instead that the incentives to incorporate be reduced by bringing the topline personal income tax rate and the small business rate closer together.

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Roundup: Disingenuous tax concerns

If there’s one thing that the federal government’s announced changes to small business tax rules for the purposes of closing tax avoidance loopholes has done, it’s stirred up a hornet’s nest of comments from the “Tax Bad! Hulk Smash!” crowd, who have come up with all manner of misleading talking points and crocodile tears, while interested parties (such as doctors and farmers) who have been using these loopholes to avoid paying taxes are crying poverty in the media, where there has been very little pushback from credible economists to these sob stories. Particularly galling are those who insist that the ability to engage in income splitting is somehow more virtuous because they’re small business owners, as though there hasn’t been a whole cohort of people who would love income splitting to allow their spouse to be a stay-at-home parent (which is a whole entire other public policy discussion about the value of women in the workforce).

And lo and behold, Jason Kenney decided to try to get his kicks in despite the fact that it’s a federal issue and he’s currently running in the provincial sphere. The problem? That he’s offering a completely disingenuous position.

And that’s the rub – these changes aren’t affecting struggling small business owners. They’re not affecting their ability to keep the business liquid, or to save for retirement, because those haven’t been affected (as we recall, Kevin Milligan has explained this several times). And for the “Tax Bad! Hulk Smash!” crowd to try and cast these changes in such a manner is utterly ludicrous. It’s an attempt to paint the Liberals with a brush of being job killers and high taxers, which is not what these changes are about. It’s about ensuring that people don’t avoid paying taxes by virtue of these measures, so unless they’re keen to promote other forms of tax avoidance or evasion, trying to close loopholes shouldn’t be treated as an added burden to people who are doing well for themselves.

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Roundup: Butts/Bannon brouhaha

Tongues were set wagging in the Nation’s Capital yesterday when The New Yorker claimed that Justin Trudeau’s principle secretary, Gerald Butts, had struck up a friendship with Donald Trump’s chief strategist Steve Bannon, of Breitbart fame. Apparently, Bannon sees Butts as the left-wing version of himself, or something, and Butts allegedly told him that there’s nothing more populist than a rich guy raising taxes on the wealthy. And while everyone clamoured for some kind of confirmation out of PMO, getting non-denials from official sources, and “it’s just business” from the less official sources, none of the Canadian stories that I read stopped at the part where the New Yorker piece claimed that Trudeau reversed a polling slump by pushing through these tax measures. While I will readily admit that most polling stories give me hives, especially two years out from an election, I can’t for the life of me recall this having happened – Trudeau’s poll numbers have remained stubbornly high, and only really dipped a little when Andrew Scheer won the Conservative leadership, because at that point there was an actual face that people could put to the poll questions (never mind that questions related to which leader one would vote for are illegitimate given our system of government). Trudeau putting forward these tax changes were the first piece of legislation that they tabled, and while it took a while to actually pass (during which time a budget had also been tabled and passed), it had no actual effect on his polling numbers. Where the New Yorker got this particular tidbit is mystifying to me, and why Canadian outlets didn’t call bullshit on this – and subsequently look side-eye at the other claims in the piece – is similarly baffling.

Of course, the story would not be complete without Thomas Mulcair coming out to theatrically demand that Butts disavow this “friendship” given all of the drama around racism and white nationalism in the States over the past few days. The problem of course is that a) Butts is not an elected official, and b) there are NAFTA talks underway, and it would be really bad form for our government to so blatantly thumb our noses at the Americans in this way. Keeping a working relationship going would seem to be the most prudent course of action – but that never seem to be the course that Mulcair advocates.

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Roundup: Tuition trade-offs

If you’ve paid any attention to the NDP leadership race, you’ll know that the classic issue of free tuition has been bandied about with wild abandon, but no more enthusiastically than by Niki Ashton as she tries to bring Bernie Sanders-like excitement to the topic. The problem? That she’s ignoring some of the realities of the promise, for which Alex Usher took her to task over the Twitter Machine over the long weekend.

What Usher demonstrates here is that while it’s all well and good to promise free tuition, it comes with trade-offs, which is the reality in the countries where it is offered, and which Ashton refuses to discuss in her statements. You can’t give free tuition to everyone while maintaining the same level of access and quality instruction or institutions writ-large. There are other non-monetary resources that are finite, which this facile “free tuition is the solution!” boosterism ignores, and should be discussed if this is to be a seriously discussed issue and not just a vapid slogan, borrowing from American discourse without acknowledging the differences in Canada as so many of the Bernie Bro slogan appropriation has been.

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Roundup: Brown’s creepy town hall

A story out of Brockville yesterday is a bit disconcerting, where local Conservative MP Gord Brown held a town hall in the community about the Omar Khadr settlement, saying that he wanted to get people’s views because everywhere he went, it was all people would ask about. He also claimed that it “wasn’t a partisan issue,” but I would be willing to bet actual money that the way in which Brown presented the case was through a deeply partisan lens, regurgitating the party’s disingenuous talking points and legal prevarications that distort the crux of the matter. And what disturbs me the most is that listening to the reactions in the write-up of the event, it starts sounding an awful lot like a Two Mintues Hate than anything, where people recited the completely wrong tropes about Khadr’s situation and situation as it regards the rule of law. It was at least heartening that a local lawyer turned up at the event, brandishing a copy of the Charter of Rights and Freedoms and laying down the law about why there was a settlement, and it’s quite the photo that ran with the piece – but I doubt that it would change very many minds, considering the distortions that are continually spread by the partisans (on all sides, to be completely fair, given that many a Liberal partisan conveniently forgets the roles that Jean Chrétien and Paul Martin played in this). Nevertheless, the fact remains that holding a town hall on this issue is deeply creepy.

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Roundup: A sudden demand for subsidies

Something that went largely unremarked yesterday was a somewhat bizarre press release that Andrew Scheer put out, bemoaning the lack of cellphone coverage in one region of Quebec, and then wondered why the government had all kind of money to spend on other things but not this, and then lumped it in with softwood lumber and Supply Management as a Quebec priority.

https://twitter.com/journo_dale/status/889841610665730048

While the fact that the Conservative leader was in essence demanding subsidized cellphone coverage in one particular region is strange in and of itself, it should be a reminder that this is no longer a party of actual fiscal conservatism – it’s a party of economic populism that just happens to chant about balanced budgets for the sake of it. To be certain, this is the first time I’ve seen cellphone coverage being listed as a top priority from Scheer or the Conservatives, and as many of my Twitter followers pointed out, there are plenty of places in this country with poor or non-existent coverage, especially along the TransCanada highway – somewhere one might expect that it might be some kind of national priority. But I’m also curious as to what exactly Scheer proposes to do about it that government deficits aren’t taking care of – language that seems to imply that they’re not simply going to demand that companies provide this coverage through regulatory means. Add to that, they were in power for almost a decade and did nothing about these kinds of coverage gaps, so it makes one wonder why it suddenly became a priority unless it just happens to be somewhere that Scheer is hoping to pick up some votes. Crass politicking? Perish the thought!

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Roundup: Taking it to American media

This wailing and gnashing of teeth going on about whether or not the Conservatives may have damaged NAFTA renegotiations by going to the American media to bellyache about the Omar Khadr settlement is kind of tiresome, but I have to wonder if some of the angst or even analysis on this isn’t misplaced. While sure, there are points to be made about how going there is a bit of hypocrisy going on, where Andrew Scheer insists that it’s totally different for the Conservatives to go down about Khadr while at the same time saying it was “treasonous” for Thomas Mulcair to go to Washington to decry pipelines doesn’t pass the credibility test, I also don’t think that Scheer can credibly claim that If the Khadr payment hurts NAFTA that it’s Trudeau’s fault because it comes off as petulant.

Roland Paris gave some additional thoughts here:

There was an additional comment (that I can’t find to cite) that what’s more suspicious is the fact that the Conservatives had to go to the States to drum up outrage over Khadr because they weren’t getting much traction on it in Canada, as they were already preaching to the converted. I think that’s a fairly trenchant observation, and I have to wonder if it’s also because they chose particular American outlets that won’t offer pushback to their points that are factually wrong, which they wouldn’t get in Canada. Certainly Rosemary Barton wouldn’t abet the same kind of disingenuous commentary that Michelle Rempel pushed, and I think that’s also part of what we should take away from the exercise, beyond the fact that this performative outrage could backfire and cause problems with NAFTA in the age of the Uncertainty Engine taking more cues from Fox & Friends than he does with his officials.

Meanwhile, Paul Wells sees little trouble for Liberals in the polls post-Khadr settlement, so it seems like there’s little backlash (as those who were against Khadr seem unlikely to change their votes). Kady O’Malley meanwhile wonders if dragging the Americans into the Khadr file isn’t going too far.

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Roundup: Caretakers and emergencies

The situation in BC, where there is an emergency situation of wildfires and evacuations in the midst of a change of government, can be pretty instructive as to how our system of government works. Right now, as with during an election period, the machinery of government goes into “caretaker” mode, and because Christy Clark remains the premier until the moment John Horgan is sworn in, she is able to respond to the situation as she is doing now.

This is why, after Clark’s visit to the lieutenant governor, the statement from the LG was that she “will accept her resignation,” not that Clark has resigned on the spot.

Why is this important? Because the Crown must always have someone to advise them, especially in circumstances like this. Add to that, we have a professional, non-partisan civil service means that they are already in place, and don’t need to have a massive new appointment spree to fill the upper layers like they do in the US. That means that they can respond to these kinds of situations, and while the caretaker government gives the orders, the incoming government’s transition team is being briefed so that they can handoff the files when they form government. It’s an elegant system that we’re lucky to have.

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Roundup: Principle over circumstance

After a weekend of yet more wailing and gnashing of teeth about the Omar Khadr settlement, and despite detailed explanations from the ministers of justice and public safety, and Justin Trudeau reminding everyone that this is not about the individual circumstances of Khadr himself but rather the price of successive governments who have ignored the Charter of Rights and Freedoms, we’re still seeing a number of disingenuous talking points and facile legal analysis from players who know better. Here is some of the better commentary from the weekend.

A number of people over social media have insisted that treatment of Khadr, including the “frequent flier” sleep deprivation technique used to “soften him up” before CSIS agents arrived to question him, or the fact that he was strung up for hours to the point of urinating himself (and then used as a human mop to wipe it up) or being threatened with gang rape didn’t constitute torture.

There was some particularly petulant legal analysis from former Conservative cabinet ministers that got pushback.

And of course, the broader principle remains.

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Roundup: Virtue signalling over Khadr

It’s official – Omar Khadr got his apology and settlement, but the terms of which are confidential (as is par for the course in most settlement offers), and now the Conservatives are really steaming mad. For his part, Khadr says that he hopes the apology and settlement will restore a bit of his reputation and help people take a second look at his case to see that there was more going on, but also notes that he is not really profiting from his past. While the ministers where quite neutral in their tone, when the parliamentary secretary accompanying them translated in French, he took the partisan shots that the government didn’t, which was odd. Later in the evening, the government put out further clarifications, no doubt bombarded with accusations of bad faith.

Later in the afternoon, Andrew Scheer took to the microphones to offer a take so utterly disingenuous that it borders on gob-smacking. Essentially, he argued that a) they should have spared no expense in fighting Khadr’s suit, and b) that the remedy for the Supreme Court of Canada decisions around Khadr was his repatriation, which is a complete and utter fabrication. And there’s a part of me that would have like to see them argue that case before the Supreme Court, if only to watch the justices there flay them before laughing them out of the room.

And then the rest of the weighing in, including Stephen Harper, who wanted to pin the blame on the current government, while Conservatives continued to virtue signal that no expense should be spared to give the appearance of fighting terrorists, never mind that this decision is about Khadr’s Charter rights being violated. For a law-and-order party to decide they want to cherry pick which Charter rights don’t apply to people they consider icky, well, that’s a pretty big problem right there.

Here are some further legal opinions on the settlement, while Craig Forcese offers a reminder of some of the legal points at play, including where successive governments screwed up and made this settlement necessary where they could have repatriated him earlier and put him on trial here, an opportunity now lost. There is also a reminder that the government didn’t disclose the details of earlier settlements with former terror suspects who were cleared of wrongdoing. Terry Glavin has little patience for how this was handled on all sides, while Susan Delcarourt sees signs that people are still open to being convinced about Khadr.

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