The Liberals’ planned rollout of all kinds of “good news” announcements for Small Business Week – reductions in the small business tax rate by 2019, and changes to their planned amendments to Canadian-Controlled Private Corporation (CCPC) rules to crack down on those who use them to avoid paying taxes – were very nearly overshadowed by a Globe and Mail article that cried out that Bill Morneau hadn’t put his shares into a blind trust after all. As it turns out, this was largely a non-story – Morneau followed the advice of the Ethics Commissioner, who felt that because of his particular share structure that he wouldn’t need a blind trust but an ethics screen instead – though there are some added complications around it (see Glen McGregor’s tweets). This after the “revelation” about Morneau’s French villa – not that he had forgotten to disclose it, because he had already – just that he didn’t disclose the particular ownership structure, which is a French corporate structure not uncommon with the ownership of non-commercial real estate, known as a Société Civile Immobilière. Again, a non-story that the opposition (and certain media outlets) pounced upon, trying to make a bigger deal out of them than was merited.
And then there was the Prime Minister’s tax cut announcement at that Stouffville restaurant, and the somewhat bizarre behaviour by Trudeau in the Q&A period after where he tried to answer questions directed at Morneau (no doubt trying to keep control of the message and not let it get railroaded by the non-stories about his villa and shares, but it came off as smarmy). And back in Ottawa, his backbench critics seemed mollified by the morning’s announcements, so we’ll see if that holds in the days ahead. (Not to be outdone by all of the Liberal press shenanigans, Andrew Scheer walked out on a press conference when asked about his former campaign manager’s association with Rebel Media.)
Meanwhile, neither Chantal Hébert nor Andrew Coyne are impressed with the theatrics of this government’s attempt to change the channel on the pummelling they’ve received.
One Liberal MP broke ranks from and voted for the Conservatives’ Supply Day motion on extending the consultation period on the tax changes, and the media has spent the day salivating over it, and as has become usual, is playing the role of party whip better than the party whip himself. Because drama!
Said MP, Wayne Long, conspicuously made himself absent from national caucus yesterday morning, and made himself available to media, so it’s clear that he’s being a maverick and pushing his luck rather than keeping his head down and falling into line, but at the same time, I wonder if the fact that the media makes a Big Deal of these kinds of incidents just amplifies what he did (which shouldn’t be a big deal given that it wasn’t a confidence vote), but was simply a rather performative protest motion by the Conservatives as part of their campaign to sow confusion into the tax discussion. But my concern is that when the media goes out of their way to make a Big Deal out of this issue, chasing the whip across the Foyer to his office trying to get him to give a juicy comment about the whole thing, I fear that it sets up these public expectations that MPs who don’t always toe the party line should be ousted. We saw this in Manitoba over Steven Fletcher’s vote against his party on an issue that wasn’t one of confidence, but it was the media who kept reiterating the message that he should be thrown out of caucus, until the caucus did just that. It’s so very damaging to what we want out of our democracy, and for all that the pundit class protests that we want MPs to exercise more independence, We The Media are always the first to pounce when they don’t.
On a similar note, Kady O’Malley thinks we should stop calling it “embarrassing climb downs” when governments listen to criticism and make amendments to their bills and proposals. And like the salivating that happens when MPs break ranks, this too is always the narrative that crops up when governments respond to complaints and move to make changes to improve what’s on offer. It’s how democracy should work, and yet We The Media keeps reinforcing this message that listening and adapting is a bad thing. I have to wonder if we’re really our own worst enemies sometimes.
The outcome at the Status of Women committee was not unexpected, had as much sulking and grousing as was to be expected. In a public and not secret vote, the Liberals and NDP members of the committee rejected the Conservatives’ choice of Rachael Harder to chair the committee, and when the Liberals nominated Karen Vecchio in her place, Vecchio tried to back out but was overruled, and those same Liberal and Conservative members voted her in.
And then the bellyaching began. A sour press release was issued about how this was somehow about “bullying and intimidation” of some poor young woman (which is a ridiculous characterisation), but that they would accept the democratic will of the committee. And the pundit class took to Twitter to decry how bizarre it was that a woman was being forced to take the chair of a committee that she didn’t want. I’m not exactly sympathetic to these cries, because this is what happens when you try to pull a stunt for the sake of being a provocateur, as Scheer is trying to do, but you don’t have the votes to back it up. Oh, and then they tried to wedge this into the frame of it being a distraction from the tax proposals, when it shouldn’t need to be said that this was a distraction of the Conservatives’ own making, owing to their particular tactical ineptitude.
Meanwhile, Liberals took to tweeting about how this would have made Harder Andrew Scheer’s “spokesperson” on the committee, which is bizarre and wrong – the chair is the committee’s spokesperson. It’s baffling that they would try to spin it in this fashion. Then again, one shouldn’t be surpised given how badly this whole affair has been for people describing how things work in Parliament. And it shouldn’t surprise me, and yet here we are, that not one journalist writing about this story, nor any pundit commenting on it, remarked about the fact that it makes no sense to put your critic forward as committee chair. None. The chair’s role is to be neutral, to run the meeting, arbitrate rules disputes and to ensure that witnesses and questioners stay within their timelines. They’re not supposed to vote unless it’s to break a tie, which shouldn’t happen very often given the numbers at play. Why would you want your critic – your point person in holding the government and in particular that associated minister, to account – to be hobbled in this way on committee, is baffling. It’s utterly incomprehensible if you follow the basics of how parliament is supposed to work. And yet nobody saw fit to call Scheer out on this fact. These details matter.
Today we rejected Andrew Scheer's choice as his spokeperson – an MP who does not support womens' reproductive health https://t.co/ElSEnt1JEV
Yesterday was the big day, and Her Excellency, the Right Honourable Julie Payette was installed as the Canada’s 29th Governor General in a ceremony that involved more than a few nods to the Indigenous people, and a lot of music – numbers and artists that surprised many.
As for Payette herself, her installation speech was twenty minutes “from the heart” no script, no notes, and in a dynamic storytelling style about her personal journey, and what she hopes to accomplish in her time as the Vice Regal representative in Canada, drawn from her perspective of seeing a borderless planet from orbit. It also gave a hint about what she may see as her priorities as GG, which will involve promoting STEM (especially for girls), and about helping people unlock their potential by having the right support systems behind them. Personally, I would say that this speech was far beyond anything we’ve seen from the post in more than the past seven years of Payette’s predecessor, and that I believe will serve us well.
Meanwhile, the National Postlooked into just what a Governor General does all day, in true Tristin Hopper style.
In the wake of the installation ceremony for Her Excellency, the Right Honourable Julie Payette, Justin Trudeau was not in the Commons for QP, leaving only Andrew Scheer as the leader of note present. Scheer led off, mini-lectern on desk, reading about shock and sadness for the terrorist act in Edmonton over the weekend, and asked for a minister to update the House on the situation. Ralph Goodale read a statement of condemnation for the action and congratulations to the Edmonton Police Service for their actions, and updated on the injured. Scheer then read similar sentiments for the shooting in Las Vegas — minus the part about condemning global terror — and Chrystia Freeland responded with condolences and notes that one Canadian was confirmed killed and consular services were working to help victims and their families. (A second Canadian was later confirmed as having been killed). Scheer then moved onto the proposed tax changes, and Bill Morneau assured him that they were listening and would make changes to the proposals. Maxime Bernier was up next, saying that Morneau was not listening, and then raised the Morneau-Shepell conspiracy theory, and Morneau insisted that they were listening, which was why they engaged in consultations. After another round of the same in French, Alexandre Boulerice railed about the situation in Catalonia, but rather than answer, Bardish Chagger got up to read a statement of congratulations about Jagmeet Singh’s leadership victory. Boulerice asked again, and this time Chrystia Freeland said that Canada was hoping that Spain would act in a democratic manner. Pierre Nantel was up next, railing about the Netflix deal as selling out Canadian culture amidst a rate hike, and Mélanie Joly insisted that it was a good deal and was the first stage in modernising our cultural policies. Nantel and Joly went another round in English, not that the question or answer changed.
Today is the day that Julie Payette is sworn in, and will soon be known as Her Excellency, the Right Honourable Julie Payette, Governor General of Canada. To that end, she has been receiving the customary signals of office over the past couple of weeks, as she takes on the roles of the chancellor (or “Principal Companion”) of the Order of Canada, the Order of Military Merit, the Order of Merit of the Police Forces, and the prior of the Most Venerable Order of the Hospital of St. John of Jerusalem (with note that the Queen is the fount of all Canadian honours).
Payette will have an extremely busy schedule from here on in, acting in the ceremonial capacity that state functions demand, doing diplomacy domestically and internationally, becoming a patron to charities, and keeping on top of her constitutional duties. It’s a big job, but given Payette’s accomplishments I’m quite sure that she’ll be up to the task.
Payette is also the first GG since the 1950s who comes to the position without a spouse, so she has nobody to help share the burden of appearances with, so that will be an interesting change from the past few appointments, where there has been this sense of a two-for-one deal between the GG and their highly-accomplished spouses. It will also, unfortunately, mean that more people will be attempting to download the whole “First Lady” nonsense to Sophie Grégoire Trudeau when the closest Canadian equivalent was the “Chatelaine of Rideau Hall” (when the GG was male – I’m not sure what the male of equivalent of Chatelaine is), presuming that one doesn’t count Prince Philip given that he’s actually the spouse of our head of state (and we don’t have a “First Family” because we have a royal family).
Meanwhile, here’s Philippe Lagassé on the meaning of the GG as our Commander-in-Chief in Canada.
The rank of Commander-in-Chief is bestowed on Governor General by the Queen as per the Letters Patent 1947.
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.
These TOSI rules already exist. You can't set up 'Potemkin shareholders' with your <18 kids who you pretend are working for the company. 2/
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.
We want to encourage entrepreneurs and investment. But there is no reason to funnel that activity thru a specific tax-favoured corp form.
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 don't even get me started about the backwards view that a woman doesn't contribute to a family business if she just manages a household. https://t.co/vThXpwOacN
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.
Alberta small businesses are struggling. But the federal Liberals want to raise their taxes. Why is the NDP silent on this federal tax grab? pic.twitter.com/eOzhr1TsGt
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.
As Senators have made their way back home for the summer, we’re having another round of them poking each other, like kids in the backseat of the car on a long trip, over just who are the “real independents” in the Senate. It’s getting a bit tiresome, especially with the Conservatives insisting that they’re the only ones because they vote against the government more often. The problem is that it’s a fairly flawed metric because they’re the Official Opposition and are supposed to vote against the government on a consistent basis. That doesn’t make them independent – it makes them the opposition.
The big problem with the metric about voting as a measure of independence ignores the broader procedural issues. If the government could really command the votes of its new independent appointees, then bills would be making it through the Senate a lot faster, and they’re not. The logistics of getting legislation through the chamber when you don’t have a whip who is organizing votes is one of the measures by which you can tell that these senators are more independent than the Conservatives in the Senate give them credit for. While the Conservatives, Senate Liberals and Independent Senators Group are getting better at organizing themselves in trying to come up with plans around who will be debating what bills when, the fact that the Government Leader in the Senate – err, “government representative,” Senator Peter Harder, refuses to negotiate with those groups to prioritize some bills over others, has been part of the reason why some bills went off the rails and took forever to pass. If he did negotiate, or could command votes to ensure that bills could be pushed through when needed, I would buy the argument that these senators aren’t really independent. The fact that there is this lack of coherence in moving legislation is one of the markers in the column of greater independence. This is also where the argument about the need for an Official Opposition kicks in.
@SenateCA@JPTasker Why unbelievable? Envision INDEPENDENT sober second thought – not lockstep Con partisan votes!
While the dichotomy of strict Government/Opposition in the Senate has been upended with the new group of Independents, ending the duopoly of power dynamics that contributed to some of the institutional malaise around the rules, I will maintain that an Official Opposition remains important because it’s important to have some focus and coherence when it comes to holding the government to account. Simply relying on loose fish to offer piecemeal opinion on individual pieces of legislation or issues risks diluting the effectiveness of opposition, and it also means that there is less ideological scrutiny of a government’s agenda, which is also important. Partisanship is not necessarily a bad thing, and the Senate has traditionally been a less partisan place because there was no need for electioneering within its ranks. Trying to make it non-partisan will not make it better, but will make it less effective at what it does.
Every time I see someone writing about Canadian populist movements and the dismissive concerns that it could never happen here, I always shake my head because it does happen. To an extent, we are living through it right now. The Canadian Press has been doing some surveys to try and discover what the “northern populism” might look like, and while it’s not quite the same as the forces that brought Donald Trump into power, it nevertheless exists here.
Part of the difference we see is that in Canada, those populist forces are less white than they are in the States or in Europe, but the focus remains the same, which are the perceived ills of the liberal (big or small L, take your pick) “elites.” It’s not a secret that the way that Conservatives like Jason Kenney targeted ethno-cultural minority communities was by focusing on socially conservative issues, whether it was their reticence to embrace same-sex marriage, or things like marijuana, those were cues that helped them tap into those communities the ways that other populist movements haven’t, who are too busy dog-whistling to appeal to the more blatant racists. And while there are those undercurrents in Canadian populist movements, for which things like immigration remains a bugaboo, Canadian conservatives have managed to tap into a particular vein of “it’s not our immigrant community that’s the problem, it’s those other immigrants that are,” and that set up a kind of justification that “hey, we can’t be racists because these immigrants don’t approve of that immigration policy,” never mind that yes, immigrants can be intolerant of other racial or ethno-cultural minority groups that aren’t their own.
But populism is not a spent force in Canada. We saw how it operated with Rob Ford, and it’s alive and well in Alberta as they try to harness it into an anti-NDP political party. To an extent, the federal Conservatives and NDP have largely abandoned their own ideological underpinnings to be right or left-flavoured populists, and yes, there is a great deal of populist rhetoric underpinning the Liberal electoral platform, with appeals to this nebulous middle class that has no data to back up their claims (like stagnant wages for one spectacular example). Was Justin Trudeau able to harness it more effectively than his opponents? Yes. Does that mean that the scourge of populism that gave the Americans the Trumpocalypse is absent here? Not at all. That the composition is slightly different is an academic difference, but not reassuring in the least.