Roundup: Another CRA overreach?

It came up in QP at the end of the week, and then on a rare Sunday afternoon press conference, where the Conservatives are accusing the government of going after the disability tax credit, particularly when it comes to diabetics. I’m not sure that this is “the government” per se, and not CRA wielding its authority, especially when you add in the recent furore over the folio on employee discounts, where they were looking to enforce some Tax Court decisions, but not necessarily communicating the specifics in the best way possible. Now, the CRA says that nothing has changed with this particular tax credit, and that they’re in fact trying to make it easier by re-hiring nurses that had previously been fired in order to process these claims, but I guess we’ll have to wait and see if there is a decent response from the government on this (as opposed to some more pabulum around tax fairness for the middle class and so on), but one would trust that they would want to get on top of their messaging for a change, rather than letting the Conservatives keep up with this drip-drip-drip narrative. That said, I’m not sure that “this is another tax grab to pay for Trudeau’s out-of-control spending” is the best message, since most of what these measures collect are mere rounding errors. That said, this might also be CRA flexing its muscles now that it has more resource to do this kind of work, when they were merely treading water beforehand.

Continue reading

QP: Bill Morneau faces the conspiracy theories

Minutes before QP was about to start, Bill Morneau announced that he was immediately moving his shares into a blind trust and would sell them off as soon as feasible, and admitted that he may have been a bit naive around the issue. As Conservative MPs filed into the Chamber, party comms staffers pulled them aside to feed them the required lines about how they would react to this news, and there was likely some hasty rewriting of scripts to ensure that they continued to maximize their outrage. Meanwhile, neither the PM nor Andrew Scheer were present, but Bill Morneau was, meaning he would be the target of all of that maximized outrage. Pierre Poilievre led off, intimating a vast conspiracy of numbered accounts that Morneau controlled, and Bill Morneau stood up to give his contrite admission that he could do more, and that he has divested himself of those shares and would keep his Ethics screens in place. Poilievre accused Morneau of being a hypocrite attacking small businesses. Morneau stated that they were working to ensure tax fairness, and that he planned to go beyond the Ethics Commissioner’s recommendations. Poilievre wondered how many times he had to recuse himself (at the press conference, Morneau said twice), and I’m not sure that he reiterated this answer when he repeated his pledge to do better. Alain Rayes was up next to demand in French when he told the PM of his conflicts, and Morneau reminded him that our system has these questions go through the Ethics Commissioner, whom he worked with to ensure there were no conflicts. Rayes asked again, with additional concern trolling about the mandate letters, and Morneau repeated in English this time the same response. Guy Caron was up next for the NDP, accusing Morneau of misleading everyone on his shares. Morneau reminded him that he followed the Commissioner’s guidelines, and when both Caron and Nathan Cullen raised the Morneau Shepell/C-27 conspiracy theory, got much the same answer, and Cullen sanctimoniously repeated Caron’s first question, but Morneau let the message track drop, and accused Cullen of sowing distrust by misrepresenting facts.

Continue reading

QP: Selling shares, ad nauseam

While the PM was in Toronto and Bill Morneau in Montreal, it was promising to be an insufferable day in Question Period. Andrew Scheer led off, accusing Morneau of evading Canadian taxes while labelling small businesses as tax cheats (not true), and Bardish Chagger got to stand up to read that Morneau followed the advice of the Ethics Commissioner and that they trust her. Scheer tried again, and Chagger read that they are making changes to their proposals based on what Canadians told them, and hey, lower small business taxes! Scheer switched to English to worry that Morneau didn’t place his shares into a blind trust, and Chagger read another trite statement. They went another round, Chagger trying to play up small business week, and then another round again. Guy Caron was up next, leading for the NDP, raising the supposed conflicts of interest that Morneau was involved in — per the letter that Nathan Cullen sent to the Ethics Commissioner — and Chagger reminded him that they cleared everything with the Commissioner and after another round of the same in French, Cullen got up to reiterate and tried to get Duclos to respond based on pension legislation that could, theoretically, benefit Morneau’s family company, but Chagger gave her stock response. When Cullen chastised her for responding instead of Duclos, the response didn’t change.

Continue reading

QP: Discounts and French villas

Hours after the mandatory Monday morning Liberal caucus meeting and the presser by Justin Trudeau, Bill Morneau, and Bardish Chagger on small business tax cuts, QP got underway, with the opposition smelling blood in the water. Andrew Scheer led off, mini-lectern on desk, and read a demand in French for clarity on employee discounts as tax benefits. Diane Lebouthillier stood up to say that the document from CRA did not reflect the government’s position, and they would be reviewed. Scheer asked again in English, making a bigger issue out of this being a tax grab, and a Lebouthillier repeated her response in English — a rarity for her (which she has been working on). When Scheer asked yet again, Lebouthillier reiterated her response for a third time, but back again in French. Alain Rayes took another stab at the very same question in French, got the same answer, and then when Rayes tried to insinuate that she didn’t know what was going on in her department, Lebouthillier stuck to her points. Guy Caron was up next for the NDP, and he raised the non-stories of Bill Morneau’s villa in France, and his company shares not being put into a blind trust (never mind that he followed the Ethics Commissioner’s instructions on the ethics screen instead). François-Philippe Champagne stood up to praise the small business tax cuts instead, and on a second question of the same, Champagne reminded him that he followed the guidance of the Ethics Commissioner. Nathan Cullen was up next, and wondered rhetorically about Liberal promise-keeping as damage control. Champagne praised the small business tax cuts instead, given that there wasn’t really a question there. Cullen raised the villa and the lack of blind trust, and Champagne reiterated that Morneau followed the Commissioner’s guidelines.

Continue reading

Roundup: A failure to communicate

The state of the “debate” around this latest round of tax nonsense in Canada has me despairing for the state of discourse in this country. From the CRA’s opaque memo, to the Conservatives’ disingenuous and frankly incendiary characterization, followed up by terrible government communications and attempts at damage control (Scott Brison doing the rounds on the political shows last night was painful to watch), and throughout it all, shoddy and inadequate reporting on the whole thing has me ready to cast a pox on all of their houses. If anything was more embarrassing than Brison’s inability to explain the issue while reciting well-worn talking points on the middle class, it was David Cochrane quoting the Canadian Taxpayers Federation and asking if MPs need to reconsider their own benefits in light of this.

Hermes wept.

It also wasn’t until yesterday that CTV came up with an actual good fact-check on the issue, what it actually relates to (including how it relates to a 2011 Tax Court decision), and how it’s not targeting the bulk of the retail sector. But that took days to get, during which time we’ve been assaulted by all manner of noise. News stories in the interim that interviewed MPs and the Retail Council of Canada were distinctly unhelpful because they did nothing to dissect the actual proposals, which were technical and difficult to parse, so instead of being informed about the issues, we got rhetoric, which just inflames things. And I get that it’s tough to get tax experts over a long weekend, but Lyndsay Tedds tweeted a bunch of things on it that should have pointed people in the right direction, rather than just being a stenographer for the Conservative hysteria/government “nothing to see here, yay Middle class!” talking points.

Here’s a look at how the government scrambled to get a better message out around the Canada Infrastructure Bank, in order to combat those same media narratives. Because apparently neither side is learning any lessons here.

Continue reading

Roundup: A reminder of why debate matters

While I haven’t been following the trial in Sudbury around those non-criminal bribery charges related to the provincial by-election, aside from Chris Selley’s columns on the topic, it was something that he tweeted from the courtroom yesterday that piqued my interest because it’s something I deal with a fair amount in writing both about law and politics. Part of the issue raised is that these sections of the law that the trial is proceeding under have never been tested before.

We see these kinds of bills passed not infrequently federally that are passed at all stages with no debate. This is usually where the Senate picks up the slack and does the actual heavy lifting, but not always. Sure, there are a few bills that are relatively non-contentious, related to national parks and such (to think of an example or two off the top of my head), but some that matter – like the changes to royal succession in Canadian law – got no debate in the Commons despite it being a fairly fundamental problem that the law as passed effectively reduced Canada’s status to that of a colony once again.

But the point I make is that the courts will often turn to Parliament for guidance in what it is they should be interpreting. That means looking to debates and committee transcripts to try to divine just what it is that Parliament intended when they passed the bill so that the judge can rule one way or the other in clarifying the meaning. And if you have no such debates – like in this Ontario statute – well, that’s a real problem. It’s also a reason why I will frequently harp on why the Senate matters so much is because they not only will offer some debate in instances where the Commons offers none, but it’s where committee testimony becomes most crucial, especially when it comes to hearing from witnesses that people object to (as happened with the trans rights bill) – because they want it on the record that they heard and dismissed these concerns should they eventually be litigated.

Parliament is supposed to matter, and MPs (and MPPs in this particular instance) do themselves and the province or country they serve a real disservice when they don’t do the job of putting things on the record. And I’ll say that the issue going on in Ontario right now with the bubble law around abortion clinics is another such issue. The provincial Progressive Conservatives offered to pass the bill at all stages – eager to get it off the agenda so that it minimizes the divisions in their ranks on the issue, and the Liberals refused, wanting instead to hear from those it affects. While the cynical calculation is that this is the Liberals playing politics – and to an extent it really is – it’s also the responsible thing to do, so that we get some debate and testimony on the record, so that when this legislation is inevitably challenged, there is a record for the courts to turn to. And yes, that matters beyond the petty politicking.

Continue reading

Roundup: The demise of Energy East

The news that TransCanada decided to cancel their plans for the Energy East pipeline yesterday created a predictable firestorm of reaction, from the gloating of Montreal mayor Denis Coderre, outgoing Saskatchewan premier getting in his last kicks, to the histrionics of the Conservative caucus. The government’s line is market conditions have changed since the project was first proposed – and they’re entirely correct. But that doesn’t stop the rhetoric, either from TransCanada itself, or from the Conservatives, who are peddling some incredulous, mind-boggling lines to vilify the government.

But seriously, there are plenty of charts and graphs that show how the market conditions have changed beyond just the world price of oil (which is a bit part of it), but that the capacity with the other approved pipelines changes the equation for the hole that Energy East would have filled, and it’s no longer clear that it was a clear-cut decision after all.

https://twitter.com/andrew_leach/status/915942105461145601

https://twitter.com/andrew_leach/status/915942482940067840

https://twitter.com/andrew_leach/status/915986128284524544

Also, it should be mentioned that as much as TransCanada is blaming government regulation, they did balls this up on their own end more than once, and do need to take some of the blame along the way. But why take that blame when you can shake your fist at the government?

And this having been said, there is a proud Alberta tradition that is underlying all of this. Because some zombies refuse to die.

Meanwhile, Paul Wells looks at the current record of the government in trying to attract investment, and wonders if we really are a place that will get the big things built, or if it will all collapse in tears and recriminations, driving investors away.

Continue reading

QP: Energy East and Barbados

After the Energy East cancellation announcement this morning, you just knew that this would be the fodder for increasingly hysterical denunciations during QP today. Justin Trudeau was present, but Andrew Scheer was not, so it remained to be seen how this would play out.

Lisa Raitt led off instead, mini-lectern on desk, blaming the government for killing Energy East with their ideology. Justin Trudeau responded that it was a business decision, that the project was proposed when oil was $90/barrel and it’s now half that, but that his government had already approved three other pipelines. Raitt accused the government of playing to the interests of countries like Saudi Arabia, and Trudeau shrugged off that suggestion. Raitt then accused him of taking Atlantic Canada for granted with this cancellation. Trudeau countered that they had an Atlantic growth strategy and that it was the previous government that ignored them. Gérard Deltell then took over the condemnation of the loss of Energy East in French, and Trudeau reiterated that conditions have changed, also in French. Deltell then said that Trudeau was responsible for conditions changing, as though Trudeau controls the world price of oil, and Trudeau instead responded about the ways that they have been doing what the market has been asking for, including carbon pricing. Guy Caron was up next, pointing to the recent PBO report on fiscal sustainability, and demanded that healthcare be adequately funded for the provinces. Trudeau touted the investments that they made in mental health and home care. In English, Caron demanded a national strategy for seniors, to which Trudeau listed all of the measures that they have taken. Caron then changed topics to the Phoenix pay system, demanding a refund for it. Trudeau noted that they were working with the public service and the unions to fix the situation, and then there was another round of the same in French.

Continue reading

QP: Morneau’s five new themes

While the prime minister was off meeting with the premiers and Indigenous leaders, it was also a Supply Day where the Conservatives were demanding an extension of the consultation period for the proposed tax changes. Andrew Scheer led off, mini-lectern on desk, and read his concerns about “local businesses” in French, and how tax changes would doom them. Bill Morneau reminded him that they were listening to Canadians and would ensure that their concerns were being heard. Scheer switched to English to demand that the government vote for their opposition motion on extending the consultation period. Morneau instead listed the five things they’ve heard that they plan to address. After another round of the same from Scheer and Morneau, Gérard Deltell got up to ask in French about the verification of the plans, and Morneau reminded him that they were looking for a fairer system that would encourage investment. Deltell railed that the measures would kill small businesses, but Morneau repeated that they were listening to the consultations. Alexandre Boulerice led for the NDP, railing about Netflix and tax avoidance by big corporations and tax havens, and Diane Lebouthillier reminded him that they were indeed going after tax evaders. Boulerice asked again in English, and Morneau deployed his worn tax fairness talking points. Linda Duncan was up next and raised the concerns laid out in the Environment Commissioner’s reports, and Catherine McKenna listed a number of measures that they were taking. Robert Aubin repeated the question in French, and McKenna reiterated her response in French.

Continue reading

QP: The Morneau-Shepell conspiracy

Shortly after a fire alarm emptied out the Centre Block, and MPs made their way back into the building, Question Period got underway. Andrew Scheer led off, reading a stilted question about the Omar Khadr settlement in French. Justin Trudeau took the chance to take a partisan shot, saying that this was because the previous violated his rights — not mentioning that it was also the fault of previous Liberal governments — and reiterated his previous speech about how he was outraged and hopefully that outrage would ensure that future governments would not violate rights again. Scheer called out that the Liberals were at fault too, and Trudeau modified his response that it was about previous governments (plural) but added that this was not about Khadr, but about the government’s action and they should stand up for rights even when it’s not popular. Scheer then pivoted to the tax change issue, got the usual talking points from Trudeau, and when Scheer tried to skewer this as being one more cost to the middle class, and Trudeau reeled out his points about cutting taxes on the middle class. Scheer made a few digs at Trudeau’s own numbered corporation and his speaking fees before he was made party leader, but Trudeau didn’t take the bait. Pierre Nantel was up for the NDP, and railed about the announcements on cultural industries. Trudeau read a statement that assured him that they had unprecedented investment from Netflix, and that they would ensure that Canadian creators would benefit. Rachel Blaney asked in English, decrying that Facebook and Google were not being made to pay, but Trudeau reiterated his assurances that Canadian producers would benefit from these funds. Nantel repeated the question in scripted English, Trudeau reiterated that this was great news for Canadian cultural industries, and Alexandre Boulerice closed the round by railing that other media companies weren’t being taxed. Trudeau repeated that they were looking to support the industry as it transitions.

Continue reading