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.

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Roundup: The orgy of unforced errors

Word has gone out to Liberal MPs that there will be a mandatory caucus meeting first thing on Monday morning – a rarity given that mostly they wait until Wednesdays (especially as it makes it harder for those MPs who are from remote ridings to get there). The only thing that we know so far is that both Bill Morneau and the PM will be there, and the speculation is that it will outline the changes to their proposed tax changes based on consultations, but one can also assume that this is going to be about the ongoing self-harm that the government has been inflicting on itself over the various tax stories.

And what self-harm it’s been. On Friday, it was revealed that Bill Morneau forgot to declare that he also has interest in a company that owns a villa in France, and you can bet that the Conservatives took to this like a pack of dogs to fresh meat. This after the way that they refused to punch back against the gross distortions being promulgated about the proposed changes to the rules around Canadian-Controlled Private Corporations (CPCCs), or the refusal to provide real clarification around the CRA “folio” on certain employee discounts, preferring in each case to mouth the pabulum about fairness for the middle class. (Cute fact: the CRA “folio” has been up for months, was briefly discussed in the Commons finance committee last month, but only turned into a major crisis after a piece in the Globe and Mail. Because that’s now the Opposition Research Bureau, and it’s where the Conservatives take their daily outrage marching orders from, too lazy or incompetent to do their own research anymore).

And then there’s the added outrage over the fact that the government spent $221,000 on the cover of this year’s federal budget. Oh, how terrible and outrageous, and look at how plain the cover of Paul Martin’s budgets were, and then the Conservative chorus chimes in and makes these snide remarks about comparing the spending priorities between the two governments – completely ignoring the fact that they chose instead to spend even more thousands of dollars staging photo ops off of Parliament Hill to make announcements or give speeches where the Liberals will do it in the House of Commons, where they should be. Lindsay Tedds, mind you, offered up a sort of defence for why the Liberals may have chosen to go with this particular route on a budget design, which those in the throes of a paroxysm of cheap outrage, remain blinkered about.

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So I guess we’ll see what emerges from that caucus meeting. Will they emerge with some better means of communicating their plans that won’t just involve more pat phrases about the middle class, and would maybe let them engage in some actual, authentic conversations that will push back against some of the nonsense being thrown around? Or will Trudeau lay down the law on his restless backbench and double down on the talking points that blandly say nothing at all, while they continue to let the Conservatives set the narrative using their own particular brand of spin, misdirection, and distortion? I guess we’ll have to see.

Meanwhile, here’s Colby Cosh raining down hellfire on that $210,000 budget cover, Chantal Hébert on the fire that Bill Morneau is taking, Andrew MacDougall on the Liberal’s inability to communicate their changes, and Paul Wells sees the continued litany of unforced errors as putting the government in danger of alienating the middle class that it so vocally venerates.

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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.

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Roundup: An involuntary nomination

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.

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Roundup: All abuzz about Netflix

It’s probably not a big surprise that the story for which the most ink (physical or digital, take your pick) was spilled yesterday were the culture policy changes that Mélanie Joly announced, punctuated by the grand announcement that Netflix had committed to spending half a billion dollars over five years on Canadian productions. But in there was also news that there would be no big bailout for the news media in this country, and there would be some funding boosts for the Canada Media Fund, the Canada Music Fund and the Canada Book Fund, and a creative export strategy, along with previously announced reforms of the Copyright Board.

Suffice to say, there’s a fair amount of grumbling from traditional broadcasters that Neflix is essentially getting away with murder, not bound by the same CanCon obligations of traditional broadcasters, nor are other Internet giants like Google and Facebook being asked to contribute to the same content creation funds that traditional media are. And there is some pretty legitimate concerns about this announced Netflix deal because it’s pretty opaque – Netflix will continue to be able to operate as a black box when it comes to their subscriber data, and while Sean Casey went on Power & Politics to insist that the $500 million was new money (given that Netflix had previously told Parliament that they were already spending “hundreds of millions of dollars” in Canada), it really doesn’t seem like that’s anything new given that previous statement. Netflix also says that the money isn’t coming from the recent rate-hike in Canada, but that’s not washing with a number of people. The Financial Post has a fairly comprehensive look at the announcement here, including the fact that the announcement seems to leave a lot of the heavy lifting into the future, which probably shouldn’t be a surprise.

I do think it should be incumbent upon us to remember that Netflix has not been a net benefit to the cultural sector in Canada. The late Denis McGrath used to refer to them as a “parasite” on the Canadian broadcast sector because they put no money into the production of shows that they streamed, encouraging the cord-cutting that starved the very platforms who produced those shows that they later streamed of funding. It’s a complex problem, and a handful of Netflix originals aren’t going to be the panacea for the Canadian film and television industry. If anything, it may hasten the decline.

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QP: Snide asides and Harder drama

Another sweltering day, but all of the party leaders were present today, so it promised to be a better day for exchanges. Andrew Scheer led off, mini-lectern on desk, reading his standard alarmist questions about the proposed tax changes and how they will devastate “local businesses.” Justin Trudeau responded with his usual points about how the system currently incentivises the wealthy to use corporations to avoid taxes. Scheer tried to use the framing device that that this was a revenue generator, but Trudeau didn’t give him a dollar figure. Scheer quipped that the Liberals were so incompetent that they couldn’t even raise taxes properly, and then threw out the straw men about the PM’s family fortunes. Trudeau responded that the report Scheer mentioned and noted that it ignored the introduction of the Canada Child Benefit. Scheer retorted about Trudeau’s nannies, and returned to the point about the changes as revenue generator to deal with his spending problem. Trudeau responded that they raised taxes on the wealthiest and the Conservatives voted against it. Thomas Mulcair was up next, and raised the new ministerial directive that would allow use of information possibly obtained by torture under limited circumstances. Trudeau reminded him that torture is prohibited and abhorrent, and it was why the strengthened ministerial directive made that more clear. Mulcair asked again in English, got the same answer, before he moved onto the delays in appointing new officers of Parliament, insinuating that the government is looking for lapdogs. Trudeau reminded him that they put in a new process that better reflects diversity, and then they went another round of the same in English, Trudeau getting in a few digs about the opposition not opening up their fundraising books along the way.

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Roundup: A new ministerial directive

The government came out with their updated Ministerial Directive on safeguards against using information obtained through torture, tightening the language, but still keeping some ability to act on such information in very limited circumstances, much to the chagrin of the NDP and several civil society groups. After all, the NDP have been howling about this in Question Period for months now, and now that it’s finally happened, and it’s not what they’re calling for, I’m sure that we’ll be in for weeks and weeks of this yet again in QP. That being said, some national security experts are saying that the government pretty much got it right given the complexity of the situation, so I’ll leave you with Stephanie Carvin to explain it all.

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Roundup: Say no to written guidelines

In the pages of the Hill Times, recently retired Liberal Senator George Baker opined that he thinks the Senate needs written guidelines to restrict how bills can be amended or defeated. Currently, there is the constitutional provision for an unlimited veto, and a general principle followed by senators that they don’t defeat (government) bills unless it’s a Very Serious Matter because they know they’re not elected and don’t have a democratic mandate to do so. And as much as I appreciate the learned wisdom of Senator Baker (and his retirement is a tremendous loss for the institution), I’m going to solidly disagree with him on this one.

For one, our institutions in their Westminster model are predicated on their flexibility, which allows for a great deal of evolution and adaptability, and adding too many written guidelines to hem in powers – powers that were given to the institution for a reason – rankles a bit because there will always be situation for which those powers may become necessary to use. Too many guidelines, especially when it comes to amendment or veto powers for a body for whom that is their entire purpose, takes away their power and ability to do the jobs that they are there to do in the first place. As with the constant demands for a Cabinet manual to spell out the powers of the Governor General, it’s the first step in removing discretionary power, and giving political actors (especially prime ministers) ways to go around the other constitutional actors, be they the Senate or the Governor General, which is something that should worry every Canadian. As well, codifying those powers opens up the possibility of litigation, and you can bet that our friends at Democracy Watch are salivating for any chance at all to start suing the Senate based on their not living up to whatever guidelines are drawn up, thus further imperilling the exercise of parliamentary privilege and the separation of powers between Parliament and the courts. So no, I don’t think written guidelines are needed, nor would they be helpful. At least not from where I’m sitting.

Meanwhile the Senate’s Internal Economy Committee members published an open letter to Senator Peter Harder in response to his Policy Options op-ed on independent oversight for the Senate. Suffice to say, they weren’t fans. (My own response to Harder can be found here).

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QP: What about Morneau-Shapell?

With it being Wednesday and with the PM out to town, there were a few more empty desks in the Commons, but QP rolled along regardless. Andrew Scheer led off, returning again to the proposed tax changes as an attack on “local businesses.” Jim Carr stood up to instead note that the opposition has been so concerned with women entrepreneurs, then how could they contenance the statements by Gerry Ritz in calling the environment minister “Climate Barbie.” Andrew Scheer didn’t respond, and stuck to his script, and so Carr stood up again, to again demand that the comments be denounced. Scheer again hewed to his script on “local businesses,” and Carr again expressed his disappointment and his expectation of a retraction. Onto Alain Rayes, who read the “local businesses” scripts in French, and this time, Bill Morneau stood up to reiterate that they were trying to make the system fairer for the middle class. They went another round of the same, before Thomas Mulcair rose for the NDP, railing that the PM left the door open to ballistic missile defence. Harjit Sajjan said that they were working actively with the US on NORAD modernisation, but the policy had not changed. Mulcair asked again in French, and Marc Garneau took this one, offering much the same response. Nathan Cullen was up next to rail about tax loopholes, and Diane Lebouthillier assured him they were going after tax avoidance. Alexandre Boulerice asked the same in French, and Bill Morneau gave his pat response on tax fairness.

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Roundup: Neglecting a vital institution

Of the things that vex me about our current government, their tacit endorsement of republican sentiment in this country is high on my list. The fact that they have allowed the Conservatives to take up and politicise the monarchist space in the Canadian landscape is shameful, and the fact that they have allowed the position of Canadian Secretary to the Queen to lapse is just one more sign of this particular antipathy. For all that he professes his affection for Her Majesty, Justin Trudeau seems to have a pretty difficult time reflecting that in his government’s particular decisions, and we will pay the price for it. That the work of arranging royal tours and being the link to Buckingham Palace is being left to the bureaucrats in Canadian Heritage is not a good thing. Everything I have heard about the job they do is not only that they are plagued with incompetence when it comes to the actual work of dealing with the Canadian Monarchy, but the tacit acknowledgement of my sources that those very bureaucrats charged with the responsibility are themselves republicans is hugely problematic. That they are the ones offering advice to the government is a very big problem. And that Trudeau appears to be neglecting this very important relationship is worrying. I know that there are monarchist Liberals in the ranks, and I hope very much that they can start to raise a fuss about this, because it’s a very worrying road that we are now on, and this kind of neglect can do lasting damage to our most fundamental institution, which we should all be very concerned about.

Meanwhile, Paul Wells had an exit interview with Governor General David Johnston, and brought up the issue of debating abolishing the monarchy. Johnston, bless him, pointed out that the countries that most satisfy the needs of their people tend to be constitutional monarchies, so we’ve got that going for us.

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