QP: Local businesses for local people

With Justin Trudeau off to the United Nations for the rest of the week, we weren’t expecting fireworks, but rather the continued caterwauling about the proposed tax changes, that are sure to doom the whole economy. Andrew Scheer led off, worried about what the tax changes would do to “local businesses,” coincidentally the very new campaign that his party has launched. Bill Morneau reminded him that the changes were about ensuring that the wealthiest Canadians couldn’t use these mechanisms to pay less tax. Scheer talked about two local craft brewers who were “middle class,” and Morneau quipped that he was sure that Scheer was happy to defend the wealthiest Canadians. Scheer wondered how many jobs these measures would create, but Morneau stuck with his points. Alain Rayes then picked up the line of questioning in French, and Morneau insisted, in French, that he was listening and would ensure that the system was fair. After another round of the same, Thomas Mulcair rose for the NDP, worried that th government was looking to do away with the “bilingual bonus” in the public service, to which Dominic LeBlanc assured him that they would ensure a bilingual public service. Mulcair pressed in French, and got much the same response. Mulcair moved onto the topic of Canadians being barred from entering the US post-marijuana legalisation, to which Ralph Goodale reminded him that we can’t dictate to the Americans who they let into their country. Mulcair then asked about cannabis edibles, and Goodale assured him that work was ongoing.

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QP: Tax change melodrama

The first day back in the House of Commons, and all of the leaders were present — Trudeau’s only appearance for the week before he heads to the UN General Assembly, and in between appearances with U.K. prime minister Theresa May. Of note was the bouquet of flowers sitting on Arnold Chan’s desk, to mark his recent passing. Andrew Scheer led off, railing about the proposed changes to private corporations, and insisted that small businesses were being called “tax cheats.” (Note: Only the Conservatives have used that phraseology). Trudeau stood up to remind him that nobody accused anyone of breaking the law, but that these rules were being used by the very wealthy to pay less taxes, which wasn’t fair. Scheer tried again, got the same answer, and Scheer gave increasingly hysterical hypothetical situations (which were not reflected in reality), but Trudeau was unflappable in sticking to his points. Scheer tried then turn this into a dig at Bombardier, and Trudeau reminded him that they were investing in Canadian jobs. Thomas Mulcair was up next, asking about UN talks on nuclear disarmament in light of North Korea, and Trudeau reminded him that they were working on a fissile materials treaty that would include nuclear states, which would have more effect than a symbolic treaty. Mulcair asked again in French, got the same answer in French, before Mulcair turned to the issue of Saudi Arabia and arms sales (Trudeau: We will ensure that our partners follow the rules, and you promised to respect that contract), and then another round of the same in English.

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Roundup: Arnold Chan and his parliamentary legacy

News was delivered yesterday morning that Liberal MP Arnold Chan has succumbed to cancer and passed away earlier that morning. The news is a blow for Parliament, as Chan was a very decent and well-liked MP who was serious about the dignity of the institution. Back in June, he delivered a speech in Parliament that was viewed at the time as a bit of a farewell (which he insisted that it wasn’t), in which he implored that his fellow MPs not only demonstrate their love of Parliament, but that they demonstrate it by doing things like ending the reliance on talking points.

At the time that Chan made the speech, I wrote a column about its importance, and why more MPs should heed his words. Scripts and talking points have been suffocating our parliament and our very democracy, and it gets worse as time goes on. That Chan could see their inherent problems and try to break the cycle is encouraging, because it hopefully means that other MPs will too. It’s one of the reasons why I hope that as part of honouring Chan’s legacy, MPs will work to do away with the rules in the Commons that have led to the rise of canned speeches, and that we can get to a place where debate is no longer a series of speeches read into the record without actual exchanges, and where MPs actually become engaged in the material rather than just reading the points that their leaders’ offices handed their assistants to write up for them. Parliament should be more than that, and let’s hope that others follow Chan’s lead.

Here are some more remembrances of Chan by his colleagues.

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Roundup: Picking the overseers

The composition of the forthcoming National Security Committee of Parliamentarians has been brewing under the surface for a while now, given that the legislation has taken a long time to get through Parliament, but it looks like more consternation is on the way. The NDP have complained to the National Post’s John Ivison that Prime Minister Justin Trudeau has asked for four names from their caucus for consideration on the committee, and that the PM would pick one, as is his right under the Act. The reason, according to the PMO, is to try and build a committee reflective of Canada – so essentially that it’s not all straight, white men looking at national security issues from that particular lens – and that would be a very easy thing to do. And the NDP’s one and only pick for their party’s representative on the committee, Murray Rankin, is just that – a straight, white man who happens to be eminently qualified for the role. And so Mulcair is, as he so often does, pitching a fit about it.

I’m a bit torn on the outrage here because as much as this is being spun as Trudeau having contempt for Parliament and being a Harper-esque figure in that regard, this is exactly how he drafted the legislation and how it passed, so unlike many of the tactics that Harper employed, he was upfront about his plans how he planned to achieve them. Now, granted, many of Trudeau’s plans and promises have been utterly boneheaded (see: electoral reform, “modernizing” the House of Commons, his “benign neglect” of the Senate, etcetera, etcetera), but he generally hasn’t tried to stealthily undermine the institutions or actively firebomb them. So there’s that. Also, this is how our system of government tends to work – a prime minister who enjoys the confidence of Parliament makes the appointment, and is judged on the quality of them both by Parliament and the electorate. And I get why he would want to ensure a diverse committee makeup, and not want to necessarily have to rely on his own party members to make up the more diverse members of the committee, but rather share that load between all of the parties. Nevertheless, there is something unseemly about not letting opposition parties choose their own representatives (though I hardly imagine that the members he chooses would be any friendlier to him and his agenda than one that the opposition party leader would choose). On the other hand, selection powers can be abused, and things done for ostensibly good reasons (like diversity) can have all kinds of unintended consequences. But in the meantime, this will start to look like yet another self-inflicted wound for Trudeau.

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Roundup: That fictional “crippling tax hike”

This particular exchange dominated my Twitter Machine feed over the weekend. And lo, it’s some of the same tired, disingenuous rhetoric that over this same issue we’ve been talking about for weeks, because apparently, that’s how we roll.

Of course, the point is to be disingenuous and raise a panic so that they can fundraise and data mine over it with this petition that Rempel is pushing, which is a model of political engagement that we really, really need to stop doing in this country, but unfortunately, we’re in the “If it works…” line of thinking, never mind the broader consequences.

Erin O’Toole decided he wanted to get in on the action to complain that these changes would affect “competitiveness.”

Because you know, facts are hard. And hey, Kevin Milligan went through and modelled the impact that those tax changes will actually have, and shockingly, it’s not what the Conservatives are trying to insist will happen. Imagine that.

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Milligan left it with this helpful reminder that questioning is a good thing, but also reminded us that he too can bring the shade.

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Roundup: A complex figure

I really didn’t want to write about this topic, and yet we’re swarming with stories and thinkpieces about it, so in the interest of that, I’ll say a few words, however clumsy and inexpert. On the subject of Sir John A. Macdonald and the current vogue of removing his name from things, I find myself annoyed by so much of it. Part of it is because the sudden rush to start doing this smacks of the me-tooism that so often plagues our political discourse, especially on the left or “progressive” side of things. Having a discussion about Macdonald and his role in the cultural genocide of Indigenous people is not the same thing as removing Confederate monuments in the United States, and yet there is a kind of equivalency being proffered, including by a number of self-righteous activists. They’re different conversations, and trying to equate them does nobody any favours.

Second, Macdonald is a complex figure on pretty much every level. While there has been increasing agitation in his role in promulgating residential schools, or the much-repeated quote about reducing food aid to starving First Nations on the prairies following the collapse of buffalo herd populations, all of that all of this ignores context. While people keep insisting that Macdonald was the architect of genocide, any reading of history that I’ve done is that Macdonald was trying to prevent it, having seen what happened south of the border. The problem is that there was little conception as to how to go about doing it, and there was a great deal of political opposition to his doing do, when there were a great many voices who would have preferred that they starve. That Macdonald mitigated these calls and actually did deliver food aid (which was something that governments were certainly not in the business of in the 1800s), and tried to come up with plans to get them to transition to farming once they couldn’t hunt bison any longer (which didn’t take), and to give them the vote in order to involve them in the political life and decision-making of the country despite that they didn’t own land and would otherwise not eligible under the existing electoral laws of the time (leading to howls that he was giving them “special” rights, which subsequent Liberal governments stripped) – it all should mean something. Yes, what we recognise now as being cultural genocide was an attempt at staving off actual physical genocide. It’s why Macdonald created the Northwest Mounted Police – to ensure that there were orderly treaties rather than the mass slaughter done by the Americans in order to clear lands for settlement. We know this now as the violence of colonisation, while it was trying to do this without the loss of life in the United States is a complicating factor.

So yeah, Macdonald is complex, and you can’t just mark him down in the column of “racist promoter of genocide” and leave it at that, which is why we need conversations about history, but most of what passes for it over social media, between the woke voices crying genocide and their opponents decrying the erasure of history, is not a proper conversation. It also requires a recognition that history is an evolving process, and that adding voices to the narrative isn’t erasing it – it’s adding to it, even if it makes the picture more complicated (not that I’m seeing a desire for nuance on either side). And we’re going to have a lot more conversations about this going forward, if this guide of problematic figures is anything to go by. But given the state of the debate right now, I don’t have high hopes that it’ll be constructive in the immediate term.

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Roundup: Mike Duffy, white knight

Oh, Senator Mike Duffy. For his suffering, he has decided to launch a $7.8 million lawsuit against the RCMP, the Government of Canada, and the Senate itself. It’s not just about the two years of suspension without pay, or the reimbursement or legal fees, or indeed about the further clawbacks of his salary that the Senate undertook for his abuse of expense claims, or about the lost income from speaking fees that he could have claimed had he not been dragged through the process. No, Duffy is so concerned about the lack of Charter rights for those who work on the Hill that he’s willing to take on this multi-million-dollar lawsuit for the principle of the matter.

Such a hero.

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Now, I will be the first to admit that yes, the way in which Duffy’s suspension handled was hugely problematic, and that his rights to due process were trampled on because of political expediency, it cannot be argued that the Senate was illegitimate in the way it acted because as a self-governing parliamentary body, the Senate not only has the ability to police its own, it is in fact the only body that can police its members because of parliamentary privilege and institutional independence.

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While Duffy’s lawyer was effusive in his characterisation of Duffy’s acquittal, I’m not sure that it completely passes the smell test – Duffy was found not to have met the criminal test for fraud and breach of trust, but you cannot say that no rules were broken. The Senate has pointed to numerous examples where this was the case and fined him appropriately, and while he claims that the rules were too loose and vague, that is certainly not the case with all of his rejected claims. And it will raise questions if this suit goes ahead because the judge’s ruling was indeed problematic (and I know for a fact that there are other judges on that same bench who were not keen on it), and without an appeal being raised, that could raise more questions with this trial – if it goes to trial.

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Of course, we can’t deny that perhaps Duffy is looking for a settlement of a couple of million dollars, but I’m not sure that of the parties involved, the Senate would bite and go for it. They are still pretty sore about the whole thing and are keen to continue to prove that they are taking a hard line to those who abuse it. I would wager that they are more likely to fight this to the bitter end on principle, come what may.

Meanwhile, Susan Delacourt sees an odd parallel between Duffy and Omar Khadr in that their rights were violated (which is a bit of a stretch, legally speaking), while Christie Blatchford suggests that perhaps Duffy is indeed owed something because his rights to due process were robbed.

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Roundup: Preferential tax treatment warranted?

The hits keep on coming when it comes to the rhetoric about the proposed small business tax changes. If you listened to doctors, you would think that the government was outlawing self-incorporation. They’re not. If you listen to the Conservatives, it’s a “massive tax hike” and “hugely complex changes” which also doesn’t quite scan – yes, there is some complexity in how they plan to enforce the changes, but that’s not the same thing.

People also keep insisting that these changes won’t allow them to use their incorporation for savings purposes (whether for a buffer or for a maternity leave), which again, is not the case as the new rules have been outlined.

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Of course, when these facts meet their rhetoric, we have been assaulted with yet more wailing and gnashing of teeth that these preferential tax treatments are a “reward” for the risks that these entrepreneurs take. Which again, doesn’t actually fly with the research. (See Kevin Milligan’s thread starting here, which I won’t reproduce in its entirety).

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In fact, you can make a number of arguments about whether the government should be subsidising the risk of entrepreneurs. Also, the it should be restated that preferential tax rates are not the reward for becoming an entrepreneur – there are other rewards inherent in the role.

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Instead, we come back to the government’s argument about tax fairness, and why those who choose to self-incorporate and have families to split/sprinkle their income with should be the only ones to enjoys such privileges. Nobody seems to be able to answer that question. Funnily enough. Instead, it’s more disingenuous rhetoric and outright falsehoods about what’s being proposed here, that benefits only the very wealthy few for whom this kind of tax “planning” makes sense.

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Meanwhile, Andrew Coyne takes on the notion that small businesses should get preferential tax rates for risk-taking, while taking down the critics of his arguments, who similarly are building cases on false premises.

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Roundup: Normalizing the system’s problems

On Monday night, I got into a bit of a Twitter argument over the issue of Manitoba MLA Steven Fletcher (former of the federal Conservatives) and his ouster from provincial Progressive Conservative caucus because he was *gasp!* doing the actual job of a backbencher and trying to hold the government to account, never mind that he’s a member of the governing party. It’s what he’s supposed to do, and he got punished for it. Why I gave the first punch in said Twitter fight was because of the notion that Fletcher should have shut up and been a good team player, because politics.

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This devolved into a bit of tit-for-tat about which legislatures this occurs in, and despite providing Canadian examples, never mind the fact that this is actually the norm in the UK – the mother of our parliament – my dear opponent insisted that this is not the way things work in Canada.

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And this irritates me. A lot. Because it’s washing our hands of the problems that have slowly crept into our country’s parliament and legislatures, and normalizes the bastardisations that have occurred over the years, usually under the rubric of “modernisation,” or “making things more democratic.” And the laws of unintended consequences being what they are, things get worse instead of better, and we now have very powerful party leaders in this country that have no accountability – something that should be anathema to a Westminster system.

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Why should we be defending the current norms of party and leader-centred politics when it’s not the way our system is supposed to work, and in fact makes our system worse?

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We are in an age where message control and leader-centred politics has reduced elected members to drones. We have very nearly reached the point where we could just replace our MPs with battle droids who could do just as effective a job of reading canned speeches into the record and voting the way the whip orders. Is this really the system that we want to normalise and defend? Or would we rather have elected officials who can think for themselves and do the proper job of accountability that the Westminster system is built on. I know which one I’d prefer.

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Roundup: Those “sexist” tax changes

Pushback on the proposed income tax changes increased in intensity, with the Canadian Medical Association launching broadsides at the policy under the rubric that it’s “sexist” and will drive doctors out of the country, while Conservatives have taken these arguments to social media, Lisa Raitt policing news aggregators and Kellie Leitch penning fundraising letters. Jane Philpott, addressing a CMA conference, assured them that they were operating under misinformation and that the goal of the changes was tax fairness – that those with spouses earning significantly less money or having adult children shouldn’t unfairly benefit from the existing system than those who don’t.

I did try to get some answers as to how this policy was “sexist,” because I’m not entirely convinced that these changes prevent people from using money in the corporation to finance parental leaves, never mind the fact that the previous government made a Very Big Deal about changing the EI system to allow self-employed people to contribute in order to finance maternity leaves – something that received very little uptake. And most of the stories that Raitt pointed to were anecdotal that didn’t point to where these policy changes were a problem – one example was a Facebook post where a dentist insisted that these current policies were what allowed her to keep up with male counterparts, which is an argument that makes no sense at all. They don’t prevent incorporation. They don’t prevent deductions of expenses or reinvestment in the business – it’s about not letting people use income sprinkling or splitting for the sole purposes of reducing their taxes. Not that it’s stopped the narratives that this hurts doctors or struggling small businesses.

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And this is a salient point – in Ontario, the provincial government encouraged this kind of incorporation rather than increase what they’re paying doctors, so you can see why they’re upset that these tools are being taken away from them. Nevertheless, it also largely proves that their arguments are fairly disingenuous, especially when they insist that “it’s not about the money.” But with none of their other arguments actually panning out, it seems to be that’s exactly what it is, and it’s fine if they come out and just say it. But to put on this song and dance about how the changes are “sexist” and that it somehow disproves Trudeau’s feminism, and ignoring the stated purpose of the changes with regards to tax fairness, makes the excuses start to ring fairly hollow.

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