Roundup: Terrible capital gains narratives

The communications around the capital gains changes have been atrocious. Chrystia Freeland is painting an apocalyptic picture of what will happen to Canadian society if we don’t make these changes, and the talk about fairness, where workers pay more taxes than those who can earn it on investment income is missing the key component of the discussion which is around the unequal treatment of different types of income that allows people to engage in tax arbitrage—picking and choosing which revenue models will net them the least taxation, which is a real problem for fairness that is not being discussed at all.

https://twitter.com/LindsayTedds/status/1801021913738698941

https://twitter.com/LindsayTedds/status/1801022109172256818

In amidst this comes Calgary economist Jack Mintz, whose sole entire schtick is to cut taxes to solve every problem under the sun. And of course, Pierre Poilievre was quoting him in Question Period, calling him the greatest economy in the country, which is pretty risible. It didn’t help that Poilievre made the basic mistake of believing that the tax rate is going up rather than the inclusion rate (the point at which it kicks in on the profit you’ve made), but he has doomsday scenarios to unleash into the world to make his case that this is a Very Bad Thing, when it’s nothing at all like he seemed to believe.

https://twitter.com/LindsayTedds/status/1801086926696415384

https://twitter.com/LindsayTedds/status/1801088499522937017

https://twitter.com/LindsayTedds/status/1801096926227497107

Everyone has handled this whole situation poorly, media included, and this has been al lost opportunity to try and have a proper conversation about these kinds of tax measures and changes.

Ukraine Dispatch:

Russian missile attacks have left much of Kyiv without power and water. Russian missiles also struck an administrative building and an apartment block in Kryvyi Rih in the south, and killed nine and injured 29. The American government says they are aware of credible reports that abducted Ukrainian children are being put up on adoption websites.

https://twitter.com/zelenskyyua/status/1800901662820704467

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Roundup: Elizabeth May to the rescue (again)

The House of Commons has once again embarrassed itself in voting to send the NSICOP report to Justice Hogue for her to review, and its documents, to see if she can do or say something about the potentially “disloyal” parliamentarians therein. She can’t, and won’t, because this is a political problem and MPs have just voted to kick this down the road until October because certain of the leaders can’t arse themselves to be adults and take their responsibilities seriously, preferring instead to remain ignorant so that they can shout increasingly lurid and baseless accusations from the rooftops, because that gets them clicks and engagement on social media, and that is the cart that is driving politics in these debased times. Hopefully Justice Hogue will get this request and tell MPs to go drop on their heads because she has enough work to do and not enough time to do it in, thank you very much, and this is their political problem to solve, not hers. But we’ll see.

Meanwhile, Elizabeth May was the adult in the room, who took the opportunity to avail herself of the security clearance she acquired over the course of these months of foreign interference handwringing, and did read the full, classified report, and then took to a microphone in the press theatre in the West Block to discuss what she could about the report, and then went on Power & Politics later and refined those remarks even further. And what did she find? No list of treasonous or disloyal MPs, a handful of cases of MPs who are no longer serving who may have been compromised in some manner, and the one incident of a former MP who should be investigated and charged. And even more to the point, she just proved that reading the report wouldn’t tie Pierre Poilievre’s hands, that he could still talk about the conclusions of the report without any specifics, and that Michael Chong has indeed spouting bullshit when he claimed that he knew more than a former CSIS director about this.

Hopefully this means that the hot air has been drained from this, particularly since Jagmeet Singh will read the classified version today, and Yves-François Blanchet seems to have finally been convinced to get the proper clearance so that he too can read it for himself. That leaves Poilievre as the odd man out, insisting on remaining ignorant, but hopefully with the other leaders offering similar reassurances as May, this could deflate the issue and turn to the real issues about how to better combat this sort of interference, letting parties put in necessary internal reforms to prevent nomination races from being coopted, and so on. That relies on them being grown-ups, and if one party decides to remain off-side and not among the adults in the room, that will be pretty telling. There should also be questions asked of the members of NSICOP for not providing reassurance from the start, and for letting this issue blow up unnecessarily, because that should have an impact on their credibility, or would if the Elder Pundits of this country hadn’t decided on a particular narrative that they are going to relentlessly pursue, regardless of what has transpired.

Ukraine Dispatch:

Kharkiv’s mayor says that the ability to strike missile launch sites across the border in Russia has helped calm the number of attacks his city has been facing. At the recovery conference in Berlin, Ukraine has been attracting pledges to help modernise its air defences to help prevent the need for even further rebuilding.

https://twitter.com/ukraine_world/status/1800249418949841359

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Roundup: Temporarily abdicating responsibility to Justice Hogue

The day in the House of Commons started off with the Bloc moving a Supply Day motion to call on the government to send the issue of the implicated parliamentarians from the NSICOP report to the Hogue Commission to have her deal with it, which the Conservatives also spent the weekend demanding, and the Liberals? Immediately rolled over and said sure, let’s do that. Which is stupid, because this is an abdication of responsibility, and it lets Pierre Poilievre off the hook for doing the grown-up, responsible work of getting the classified briefing so he knows what’s going on in his own party and so that he can take action. But he doesn’t want to do that, because knowing the truth could mean he might be forced to behave like a responsible adult rather than an ignorant critic who can lob wild accusations from the rooftops with reckless abandon, and that’s what he loves to do because he also knows that’s what’s going to get him media attention. The NDP, meanwhile, tried to amend the motion to get Justice Hogue to also probe the allegations around interference in Conservative leadership races, and Jagmeet Singh says that if he finds any member of his party is implicated after he reads the full report, he’ll kick them out. (With no due process? And remember, he’s a criminal defence lawyer, for whom due process is their livelihood). Elizabeth May is also going to get her briefing, and is trying to weigh what she can say publicly when she does. Nevertheless, dropping this in Hogue’s lap is not a solution, but Canadian political leaders love to foist their political problems onto judges to solve for them, which can’t work, and we’re just going to wind up where we are today, but several months later. Because certain leaders refuse to be an adult about it.

Philippe Lagassé and Stephanie Carvin lay out the case precisely why it’s a Very Bad Idea to publicly name names, and why party leaders need to get their classified briefings so that they can clean house in an appropriate manner, which is what they refuse to do.

Meanwhile, more people are latching onto the mention in the NSICOP report about compromised media outlets—those on the left are convinced this is talking about Postmedia being on the take, and now Conservative MPs are putting out shitpost videos trying to claim that mainstream media writ-large is on the take so they aren’t to be trusted. The report didn’t actually say anything about mainstream media, and if you have a grasp of the media landscape, the report is likely referring to ethno-cultural media outlets serving diaspora communities, as there is plenty of documented evidence of particularly Chinese interference in some of these outlets in Canada. But the Conservatives don’t care about the truth, or context—they want to flood the zone with bullshit in order to create this dystopian alternate reality for their followers with the explicit aim of reducing their trust in reality, and that’s exactly what they have weaponised the report to do. It’s amazing that nobody actually calls them out for doing so.

Ukraine Dispatch:

A Russian guided bomb strike has hit houses in Kharkiv, injuring at least six. Russian forces have taken control of the village of Staromaiorske in the Donetsk region, but Ukraine denies that Chechen special forces have taken over a village near the northeast border. Ukraine is claiming responsibility for damaging three Russian air defence systems in occupied Crimea, as well as for a June 5th attack on an oil refinery that has cost half a billion dollars in lost production. President Volodymyr Zelenskyy has arrived in Germany for a conference on post-war recovery.

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Roundup: Abdicating responsibilities and calling on Justice Hogue instead

The reverberations from the NSICOP report continued over the weekend, with the rhetoric still as ridiculous as ever. For example, everyone keeps shouting the word “treason” about what these MPs are alleged to have done (with the exception of the one former MP in the report), and lo, it doesn’t actually meet the Criminal Code definition of “treason,” which means that it’s unlikely anyone is going to face charges for what is alleged to have happened (if indeed any of it was in fact foreign interference and not actions undertaken as part of diplomacy, and the jury is still out on that).

And rather than continue to use this opportunity to behave like adults, the Bloc and the Conservatives now want to turn this over to Justice Hogue so that she can make some sort of determination rather than put on their big-boy pants and get their classified briefings. Turning this over to Justice Hogue would be an absolute abdication of responsibility by both the Bloc and Conservative leaders, and soon it could just be the Conservative leader since Yves-François Blanchet is now considering getting a classified briefing. That hasn’t stopped Michael Chong from going on national television to literally claim that he knows better than former CSIS directors about this, and saying that if Poilievre gets briefed, his hands are tied. That’s wrong, that’s bullshit, and that’s fabricating excuses so that he can continue to act as an ignorant critic rather than an informed observer.

This is not new. This is a long-standing problem in Canadian politics that opposition leaders don’t want to be briefed because if they do, then they have to be responsible in their commentary, and they don’t want to do that. They want to be able to stand up and say inflammatory things, and Poilievre is not only no different, but that’s his entire modus operandi. He can’t operate if he has to act like a responsible grown-up, where he would have to get the information and do something with it internally in his party, but he doesn’t want to do that when he can continue screaming that the prime minister is hiding something. But it’s hard to say that the prime minister is hiding something when he is quite literally offering Poilievre the opportunity to read the classified report, so instead he lies about what that would mean, and he gets Michael Chong to debase himself and also lie about it. This is the state of politics, and it’s very, very bad for our democracy.

Ukraine Dispatch:

Russians appear to be making headway in their attempt to capture the strategically significant town of Chasiv Yar. Ukraine says that it struck an “ultra-modern” Russian aircraft six hundred kilometres from the front lines. The Globe and Mail has a longread about of Ukraine’s most elite special forces units, on the front lines of the war with Russia.

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Roundup: A political problem means classified briefings

The naming-names debate continued apace yesterday, starting at the public safety committee, where Dominic LeBlanc pushed back against Conservative theatrics demanding the release of the names (to atrocious behaviour from all sides), while at that that same meeting, the director of CSIS and the RCMP deputy commissioner also warned that releasing those names will cause both reputational damage to individuals who can’t defend themselves on the basis of allegations that aren’t backed up, and it can also damage ongoing investigations. There is no due process that comes with naming names for the sake of it.

Ultimately, however, this remains a political problem for the parties, because they need to know who among their ranks was compromised, and that requires all leaders to have the appropriate security classifications (and apparently for privy council members who are no longer ministers, there is a Treasury Board-esque process now that requires renewal, which is an extremely odd and concerning process because MPs are not government employees and they use intelligence in a different manner, so they shouldn’t need to use the same process). And as Philippe Lagassé points out, this isn’t necessarily a problem for law enforcement so much as it is for the parties. If the leaders get the classified briefings, they know which of their MPs may be compromised (and it’s is a “may,” not an “is” because we’re dealing with unverified intelligence that may not be true), and give them the space to either sideline them, prevent them from contesting the next election under the party banner, or to give those MPs the ability to try and exonerate themselves outside of the public eye where their reputations could be irreparably damaged. But again, this relies on the leaders doing the right thing and getting briefed, not hiding behind the bullshit excuse that they would be “muzzled” if they did.

There are a couple of other problems here. One is that in talking with people familiar with NSICOP, that they have had a tendency to exaggerate things in their reports because they also have an agenda of trying to make themselves look better and to take more of the spotlight, so we should take some of these allegations with a grain of salt. As well, some of those allegations are back to the problem that we heard about in other places where some of the intelligence was rejected by the National Security Advisor because they believed it was normal course of diplomatic engagement and not interference, which is something the Hogue Commission is struggling with. We don’t have a complete picture for a lot of reasons, and everyone is jumping to conclusions and needs to dial it down.

Programming Note: I’m away for the weekend, so there won’t be a Saturday post.

Ukraine Dispatch:

Ukraine shot down 17 of 18 Russian drones overnight, with the damage of the final drone in the Khmelnytsky region.

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Roundup: The demand to name names

The day was largely marked with the discourse around that NSICOP report, and the demand that the government name names, even though that’s never going to happen because intelligence is not evidence, there may be ongoing investigations that it might jeopardise, and the possibility of reputational damage for someone who may be unwittingly involved is great—all things the RCMP pointed to in their own release on the subject. The chair of NSICOP said that any next steps are up to the RCMP, but that hasn’t stopped reporters from asking salacious questions about whether they can trust their fellow caucus-members (because remember, reputational damage).

With all of this in mind, I went back to the report, and looked for more than just that one paragraph that every media outlet highlighted. It noted that much of that witting assistance was in relation to India, which is not a “hostile power” last time I checked, even if we have particular issues with them (such as their decision to assassinate someone on our soil). I have no doubt that some MPs would see no problem in trying to “forge closer ties” with India. The other thing that I noted was that, at least in relationship with the Chinese government is that there was an expectation of a quid pro quo relationship, that engaging with them would benefit the political player in question in the hopes that the PRC would mobilise their influence networks in favour of that candidate in the riding. I suspect that in several of these cases, the MPs in question wouldn’t think of it as foreign interference, but that they’re being so clever in leveraging diaspora politics to their advantage, and believing that they can somehow outwit Chinese agents to do it. Likewise with instances of blind eyes being turned to money flowing into ridings, particularly from the Indian government—that they think they can leverage that government to their advantage and not that they’re being played, and why I don’t think that certain media outlets and political figures screaming “name the traitors!” is doing much for the level of discourse. The report did make mention of Chinese and Indian influence in at least two Conservative leadership races, but no details provided as to how or the vectors that took shape as (money, membership sign-ups under the promise of repayment, or so on). There was also mention of one former MP who had wittingly provided information while maintaining a relationship with a foreign intelligence officer, but this was being conflated with the other allegations, which is not helpful in the slightest.

As for what’s next, it would seem to me that the real question here is why certain party leaders continue to be wilfully blind as to the full details of the report, and how they continue to refuse to accept classified briefings. The notion that it would “muzzle” them is bullshit—it would mean they can’t talk about certain specific details, but it would give them a more complete picture of what is happening and if their own MPs are implicated, which would allow them to take internal party action, even if they can’t publicize the details.

Ukraine Dispatch:

Ukrainian forces downed 22 out of 27 Russian drones overnight Wednesday, and an industrial facility in Poltava suffered damage. President Volodymyr Zelenskyy met with the emir of Qatar in advance of the peace summit in Switzerland.

https://twitter.com/ukraine_world/status/1798300991407940083

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Roundup: Putting words in the Auditor General’s mouth

It was an Auditor General’s Report Day in the Nation’s Capital, and these reports were far more salacious than many in the past, which is in part why they dominated Question Period. The AG looked at three issues—contracts awarded to McKinsey and Company, the allegations around governance at Sustainable Development Technology Canada, and combatting cybercrime, and each report has a lot of things to say.

  1. Many of the contracts awarded to McKinsey were done sole-source with poor justification, going all the way back to 2011. And for context, these are contracts sought and awarded by the civil service, and not the political direction of the government; also, while there was a huge focus on McKinsey, they are less than one percent of these kinds of external contracts.
  2. There were governance problems at SDTC, including conflicts of interest in awarding funds, but there has been a lot of reporting in The Logic that suggests that some of this has been overblown, such as the fact that everyone on SDTC’s roster was given funds during the pandemic including operations that directors had ties to, so there couldn’t have been preferential treatment. Nevertheless, the government announced today that they are essentially pulling the plug on the organisation and folding it into the National Research Council.
  3. Cybercrime incidents have a poor record of being followed up on when reported to the wrong agency, and that many were dropped and the complainants were not told they reported to the wrong agency, meaning that a lot of files got lost along the way. The government is working on a single-window solution for reporting cyber-incidents, but that hasn’t happened yet.

On the first two, the Conservatives made up a huge fiction about these being contracts to “Liberal insiders,” or “friends of the government,” or “cronies,” or the like, when the reports said absolutely nothing of the sort. In fact, the reports quite clearly state that there was no political direction or involvement in these contracts, which means that these allegations by the Conservatives are not only false, but potentially libellous, but they want to create an air of corruption around the government. In addition, they seem desperate to avoid any scent of involvement themselves, when the McKinsey contract problems date back to when Harper was in government, and SDTC was set up by the Conservatives, including its governance structure, which proved problematic. In either case, the cries of corruption and trying to invoke the ghost of Sponsorship are little more than cheap lies, but that’s what the Conservatives do best these days, it seems, so none of it is surprising.

Ukraine Dispatch:

A pair of Russian missiles struck civilian infrastructure in Dnipro, injuring eight including two children. Ukrainian officials say that the decision to allow Ukraine to strike into Russian territory will disrupt their advances and help defend the Kharkiv region.

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Roundup: The PBO immolates what little credibility he had left

It looks like the Parliamentary Budget Officer, Yves Giroux, decided to extend his “winning” streak and cover himself in glory at the Commons’ finance committee yesterday, and once again immolated what credibility he has left. Defending his report, claiming he had access to a confidential report from Environment Canada that he was “gagged” from releasing (which the Conservatives jumped on and launched a thousand shitposts about, because committees are now only about content generation), lamented that the government doesn’t publish more climate modelling of their own, and how he hates how his reports are politicised, even though he’s been at this job for years and knows full well that PBO reports are always politicised, because that’s why MPs like them—so that they can both wield those reports as a cudgel, while hiding behind the shield of the PBO’s non-partisan “credibility” to keep the government from attacking it.

https://twitter.com/LindsayTedds/status/1797780078203671008

https://twitter.com/prairiecentrist/status/1797691621708054916

While this Tony Keller column lays out four major problems with the original carbon price report that the PBO produced—which again, Giroux continues to not really apologise for—energy economist Andrew Leach has some additional comments, driving home both how shallow the analysis is, and the fact that it’s not replicable because the PBO studiously refuses to explain his methodology, relying on “trust us, that’s our job.” But as we saw on P&P and again at finance committee, he complained that the government should be doing this kind of modelling work when it’s literally his one statutorily legislated job to do.

And to be helpful, Jennifer Robson provides some unsolicited advice on how the PBO could make his methodologies more transparent, if he actually wanted to do that (which I doubt, because so many of his reports rely on his pulling a novel methodology out of his ass, according to the many economists I’ve interviewed in the past). But that’s also part of the point about why he has no credibility left, and why he should start drafting that resignation letter.

https://twitter.com/lindsaytedds/status/1797817128483254759

Ukraine Dispatch:

A civilian was killed in a Russian strike on a recreation facility in Kharkiv. Here’s a look at what to expect from Ukraine’s peace summit to be held in Switzerland next week.

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Roundup: Stop talking about what they’re talking about

The one thing everyone was talking about this weekend was Conservative MP Arnold Viersen going on Nate Erskine-Smith’s podcast and just blatantly laying out his anti-abortion (and anti-gay) agenda, and then a) claiming he was ambushed, and b) putting out the vaguest statement ever to walk back his comments and defend The Leader’s position (which is less clear than he likes to pretend).

But as this is happening, we see the country’s Elder Pundits sighing and saying “There the Liberals go again, always talking about abortion,” and “wow, they’re really desperate to pull this card again, especially so early,” when the Conservatives are the ones who keep bringing it up, time after time, but the Elder Pundits keep telling everyone to just ignore it, because that will apparently make it go away. It’s not going away, and they are increasingly emboldened about these kinds of issues because the authoritarians and wannabe-authoritarians are using these very issues to oppress, and to create wedges that they can leverage, but calling that out is a little uncouth. While yes, I do think that backbench suck-up questions on abortion every day in Question Period for a week is overkill, but again, the Conservatives are the ones who keep bringing it up and who keep insisting that they’re going to re-open these issues, and if the leader says they won’t, I don’t feel inclined to believe him because he has lied about every single issue under the sun (which again, the Elder Pundits of this land continue to studiously ignore). Maybe we need to stop ignoring what is right in front of us, Elder Pundits be damned.

As a bonus, here’s a story about Viersen and what a homophobic/transphobic person he really is (on top of his continued bullshit about trying to block porn). He’s not alone in the party on this front. We should be paying attention but the Elder Pundits keep telling us not to. It’s really tiresome.

https://twitter.com/HannahHodson28/status/1796928863265521767

Ukraine Dispatch:

A Russian missile hit residences in Balakliia near Kharkiv, injuring 13. Russians have also continued pounding energy facilities across Ukraine, prompting a fresh plea for more air defences. President Volodymyr Zelenskyy headed to the Asia security summit in Singapore to drum up support for the upcoming peace conference, and to call out China for pressuring countries not to attend.

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Roundup: A choice to be dickish about pensions

Over the past few days, the NDP have put on a big song and dance about the bill to update the Elections Act, which they had a hand in drafting with the government as a part of the Supply and Confidence Agreement. They now claim that they were blindsided by the provision to move the “fixed” election date by one week so that it doesn’t clash with Dwivali, because the knock-on effect is that it will qualify a number of MPs for their pensions in that extra week because they’ll have had their six years of service then. So they are now moving an amendment to the bill to return the election date to its original schedule, because who cares about Dwivali, right?

This is actually a new low for the NDP, who are trying to play populist politics but are doing it very, very badly. And if the intention is for this to come off as mean-spirited at the expense of Hindus, Jains and Sikhs who are celebrating and can’t vote of campaign on that day, well, who cares? As I believe Emilie Nicholas pointed out on Power & Politics, if the bill is to eliminate barriers to voting, why would the NDP then put up a new barrier for Hindus, Jains and Sikhs, so that they can try and outdo the astroturf charlatans in the Canadian Taxpayers’ Federation? Because that’s the only group not actually is going to derive any joy from this. And media framing this as tAxPaYeR dOlLaRs is complicit in this kind of base thinking.

Frankly, we shouldn’t begrudge MPs their pensions because they put their lives on hold for years to serve the public in this way. (Whether they serve effectively is another story). We underpay them for the work they are doing (well, the work they are supposed to be doing—the current crop is not exactly doing themselves any favours), and to make these MPs lose out on the pensions they’ve earned because they are a few days shy of the cutoff is actually kind of cruel, and is the sort of thing that makes people rethink ever wanting to run for office, and to come out of it at the end with nothing for the time they put into public service when they could have made much more money and gotten a pension in the private sector. Instead of being gracious enough, every opposition party now wants to be dickish about it, which is pretty much fitting for the moment we’re in.

Ukraine Dispatch:

A Russian missile attack overnight destroyed a power facility in Kyiv and damaged the electricity grid. Ukraine struck an oil terminal in Kavkaz in Russia thanks to missiles fired from their navy. Both Germany and the US have now said that Ukraine can use their weapons to strike inside of Russian territory, so long as it’s for the defence of Kharkiv. A prisoner swap with Russia took place on Friday, exchanging 75 people on each side. Ukraine has had four thousand prisoners apply to join the army in exchange for parole. And the factory in Ukraine that makes Oreo cookies is back online after two years of rebuilding after being damaged by the Russians.

https://twitter.com/ukraine_world/status/1796518606832017524

https://twitter.com/ukraine_world/status/1796445849683419207

 

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