Thursday before a constituency week, and not only were the benches starting to thing out, but Elizabeth May was the only leader present, not counting “parliamentary leader” Guy Caron. Conservative Quebec lieutenant Alain Rayes led off, railing about the news that elite soldiers who are ill or injured for more than six months will have their benefits cut off. Diane Lebouthillier — surprisingly (but with neither the veterans affairs minister or his parliamentary secretary present) — answered, saying that there was a six-month grace period, and they got a pay increase and have added benefits. Rayes repeated the question, and this time Kent Hehr, the former minister, offered assurances that veterans were a priority. Rayes offered some added sanctimony for the apparent callous treatment of said troops. Hehr repeated his answer, before Candice Bergen got up to repeat the question in English, and Lebouthillier got back up to repeat her previous answer, noting that the Chief of Defence Staff had reviewed the file. Bergen got back up to try and lump this with the other faux scandals, but Lebouthillier reiterated her answer. Guy Caron got up next, leading for the NDP, demanding to know if CRA had recouped $25 billion of it had simply been identified. Lebouthillier essentially confirmed the latter, saying that they were “on the way” to recouping it. Caron railed that KPMG’s clients were not being named and shamed on the CRA website, but Lebouthillier repeated her response. Alexandre Boulerice got up next to rail about what tax avoidance was considered abusive, but Lebouthillier praised the work that CRA was doing. Boulerice ranted about tax treaties, and Lebouthillier noted that those treaties are now the CRA is able to conduct investigations and lay charges.
Tag Archives: GLBT
QP: A promise that action is being taken
While the Prime Minister was off to the APEC Summit, the rest of the leaders were present in the Commons for what was likely to be a repeat of yesterday’s gong show. Andrew Scheer led off, mini-lectern on desk, and in French, he read a condemnation of the prime minister’s silence on tax havens, demanding to know when he knew about his fundraiser’s offshore holdings (which said fundraiser disputed). Diane Lebouthillier listed off the measures that the government has taken to combat tax evasion — a billion dollar investment in the CRA, which has led to 980 investigations, 42 criminal investigations of structures abroad, a list of pending criminal charges, and billions in potential recoveries. Scheer reiterated it in English, got the same answer, and when Scheer gave his standard disingenuous talking points about the government going after small businesses while leaving their wealthy friends alone, Lebouthillier reminded them that when they were in power, they didn’t treat tax evasion as a priority. Alain Rayes took over, gave some hand-waving about the Sponsorship Scandal (no, seriously), and Lebouthillier reiterated her list. Rayes complained that CRA wouldn’t publish the tax gap data, and Lebouthillier listed even more facts about combatting tax evasion. Guy Caron was up next, demanding the government stop defending the CRA. Lebouthillier made a quip that she had more expertise than Caron did about fishing (which I’m not sure translated as well in English), and gave her usual rebuttal. Alexandre Boulerice demanded action against tax havens, and Lebouthillier reminded him that it was a priority in her mandate letter, which is why they hired auditors to tackle four jurisdictions per year. Boulerice demanded renegotiated tax treaties, and Lebouthillier listed more actions yielding results. Caron got back up to repeat the demand for renegotiations in English, and Lebouthillier stuck to her guns — and talking points.
Roundup: Paradise Papers problems
Big explosive revelations yesterday as the Paradise Papers were released – a major document dump on more offshore tax havens and those who use it. Canadian connections include the head of fundraising for the Liberal Party, Stephen Bronfman, whose family trust holds assets there, the family of a former senator, while three former prime ministers – Brian Mulroney, Jean Chrétien and Paul Martin have tangential connections to accounts there, as does the Queen. And while headlines may describe Bronfman as a “close advisor,” the party is disputing that label.
Following Paradise Papers story, Liberal Party describes fundraiser Stephen Bronfman as "a volunteer." pic.twitter.com/YGp8EiJRFa
— Glen McGregor (@glen_mcgregor) November 6, 2017
The bigger concern seems to be that Bronfman’s long-time law firm lobbied successive governments against going after more offshore tax havens. (Funnily enough, it was the Conservatives who cut funding for CRA to do this kind of investigative work, while the Liberals reinvested in it). The question for the CRA in all of these revelations is whether these funds were managed in Canada – which would break the rules – or whether they were managed from their offshore locations. CRA, incidentally, says it won’t hesitate to investigate these new revelations, which is consistent with the messages we’ve been hearing from them since they got more money for this kind of work.
The CRA is reviewing links to Canadian entities and will take appropriate action: https://t.co/GgvrGGLl26 #ParadisePapers
— Canada Revenue Agency (@CanRevAgency) November 5, 2017
As for the Queen’s indirect involvement in this, investments made by her Duchy of Lancaster holdings have an indirect stake in a rent-to-own company accused of exploiting the poor by way of these offshore funds.
And now the political reaction. While the NDP will piously shout a chorus of “we told you that you should be going after offshore tax havens!” the Conservatives have already put out press releases describing this as having to do with cozy friends of the Liberals and that this is somehow hypocritical of their fighting for the middle class – never mind that I didn’t think that Mulroney was a Liberal, or the fact that most of these connections are fairly tangential and that there is no evidence of any wrongdoing. But hey, this is about “Liberal aristocracy” and not the “little guy” that they now profess to fight for. (Remember the days when the Conservatives were the party of Bay Street? Me neither).
Andrew Scheer puts out a press release on the Paradise Papers. Says this is about Liberals’ wealthy friends. #cdnpoli pic.twitter.com/sQwnZinkGm
— Dale Smith (@journo_dale) November 5, 2017
The old families. The old money. The old aristocracy. pic.twitter.com/Uyse4tTJBX
— Pierre Poilievre (@PierrePoilievre) November 6, 2017
And Question Period today? I can pretty much guarantee you that after Andrew Scheer makes his dig about Trudeau not standing up for people of faith after the Governor General’s speech the other night (and four days later, the pundits still haven’t gotten up off of their fainting couches from it), it will be endless rounds of questions about these “Liberal insiders” hiding money offshore, tying Bill Morneau to this by way of the Morneau Sheppel/Barbados conspiracy theory, and Diane Lebouthillier will be up constantly to say that this government is going after tax evaders where the previous government cut funding, and that “the net is closing.”
https://twitter.com/InklessPW/status/927314340809646081
Roundup: A surprise by-election win
In the two federal by-elections that took place last night, it was no surprise that the Conservatives won handily in Sturgeon River–Parkland riding that Rona Ambrose used to hold. Mind you, the newly elected MP there, Dane Lloyd, may prove to be uncomfortable given his past history of saying some fairly controversial things, but that’s now Andrew Scheer’s problem to manage. The real surprise, however, was that the Liberals won the Quebec riding of Lac Saint-Jean, the former riding of Denis Lebel. Why is it so surprising? Because for a Conservative riding where the NDP were a close second in the 2015 election, this time around it was a Liberal victory, with the Conservatives barely managing second place, the Bloc in a close third, and the NDP a distant fourth. And this was the Liberals’ weakest Quebec showing in 2015 and a riding that they haven’t held since 1980.
In Lucien Bouchard’s former riding, where LPC hasn’t won since 1980. https://t.co/BwvZPhvTxa
— Dr. J Robson (@JenniferRobson8) October 24, 2017
A few numbers to consider. Lac Saint Jean was worst riding for Liberals in Quebec last election. Worst riding east of Sask actually.
— Dan Arnold (@calgarygrit) October 24, 2017
Was that Lebel effect? Maybe. But last time LSJ went Liberal was 1980. 3-in-4 voters there voted Oui in 1995. It’s not fertile Lib ground.
— Dan Arnold (@calgarygrit) October 24, 2017
https://twitter.com/inklesspw/status/922658054897897472
So can we draw any conclusion from these results? Probably not yet – it’ll probably take a few days to suss out the data and get a sense of what happened on the ground, but it does bear mentioning that the of the three opposition parties, all of them had new leaders, and each of them spent a fair bit of time in the riding over the past couple of weeks, hoping to drum up support. That the Conservatives lost the riding may simply be indicative that the riding was more loyal to Lebel himself than the party he ran for (remember that he was a former mayor from the region), but it can’t be a ringing endorsement of Scheer either. And while the pollsters are all out in force talking about the Liberals’ fall from grace in their polling numbers lately, the fact that the Liberals still managed to win a seat that the Conservatives held, even amidst weeks of headlines about tax changes and Bill Morneau’s assets, in a region where they didn’t have any historic strength, probably still says something about the party’s appeal nationally. Maybe it’s about the collapse of the NDP vote in Quebec, which could possibly be a harbinger of things to come under Jagmeet Singh? Maybe it’s the appeal of sock diplomacy and selfies? Suffice to say, it’s going to be an interesting few days for all of the parties as they figure out what happened, and prepare for the next round of by-elections.
QP: Statements for Edmonton and Vegas
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.
Morneau-Shepell! *drink!* #QP
— Dale Smith (@journo_dale) October 2, 2017
Morneau-Shepell! *drinks again* #QP
— Dale Smith (@journo_dale) October 2, 2017
Roundup: An indefensible communications strategy
If you’ve been wondering what the Conservative communications strategy around the planned changes to private corporation taxation, then it’s your lucky day as VICE got a copy of the talking points and then fact-checked them. In short, it’s predicated on a combination of extreme cases, lies of omission, and misdirection – so pretty much what you’d expect if you’ve been paying attention these past few weeks.
The Conservatives seem very skittish about actually defending their rhetoric on this.
— Justin Ling (Has Left) (@Justin_Ling) September 15, 2017
Proof Morneau plan taxes small business savings at 73%: https://t.co/bPrQJZQrWV
— Pierre Poilievre (@PierrePoilievre) September 16, 2017
This is wildly untrue. Even accepting the 73% rate, it applies to interest/revenue on the savings, not the savings themsleves. https://t.co/WV9Q389lZM
— Justin Ling (Has Left) (@Justin_Ling) September 16, 2017
I know, I know: Talking points are more important than cogent analysis.
— Stephen Gordon (@stephenfgordon) September 15, 2017
All of this is being further exacerbated by a growing number of Liberal MPs who have become victim to their own government being unable to actually articulate what these changes really mean and who have come up with a communications strategy that is more interested in sloganeering than it is on correcting the active misinformation campaign that has been going on, and which isn’t actually fighting back against said misinformation through a series of pointed questions like “How exactly is income sprinkling the thing that’s spurring entrepreneurship/growth/investment?” like keeps being brought up, or “You read the proposal where reinvesting in the business isn’t being additionally taxed, right?” And while sure, there may be some issues with family farms when it comes to capital gains for passing it on from generation to generation, or with the potential compliance burden to ensuring that any of these ongoing measures are actually above-board, those aren’t what we’re hearing. Instead, it’s this nonsensical braying about how small business “deserves” these tax breaks for “risk” (false – risk was never why these differential tax breaks were introduced, but rather, a lower small business tax rate was introduced in 1972 because at the time, they had difficulty getting bank loans). Braying that nobody is pushing back against, and that’s part of the problem.
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.
Today, the Liberal family suffers a great loss. We offer our condolences to Arnold’s family and thank him for his decades of public service. pic.twitter.com/jF2OkpGvLs
— Liberal Party (@liberal_party) September 14, 2017
— Jean Yip (@JeanYip3) September 14, 2017
Trudeau’s statement on the death of Arnold Chan. #cdnpoli pic.twitter.com/Iw8BYdC9zk
— Dale Smith (@journo_dale) September 14, 2017
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.
Countless memories. 16 years of friendship. O Captain. My Captain. 1967-2017. pic.twitter.com/IVfNyR79Sf
— Ahmed Hussen (@HonAhmedHussen) September 14, 2017
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.
Fight back against Trudeau's crippling new tax on Canadians. Go to https://t.co/Q9RklaqzGt, sign the petition, and RT this link.
— Michelle Rempel Garner (@MichelleRempel) August 26, 2017
Which “crippling new tax” is that?
Because those small business tax changes only affect those who self-incorporate to avoid taxes. https://t.co/CBQ4xti2uV— Dale Smith (@journo_dale) August 26, 2017
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.
This is bullshit. Do better, CPC. https://t.co/ZtlIQuWOW6
— Stephen Gordon (@stephenfgordon) August 27, 2017
Per @kevinmilligan, proposed changes have zero impact unless you're using CCPC to
– shelter a passive portfolio
– split income with family https://t.co/ZtlIQuWOW6— Stephen Gordon (@stephenfgordon) August 27, 2017
I swear that I made this a joke, not as an actual recommendation for CPC tax policy: pic.twitter.com/JWpShg1imx
— Stephen Gordon (@stephenfgordon) August 27, 2017
Erin O’Toole decided he wanted to get in on the action to complain that these changes would affect “competitiveness.”
In 2 years: Small bus tax increase, CPP payroll tax increase, carbon tax, income tax increase & now this. $29B deficit. R we competitive?
— Erin O'Toole (@erinotoole) August 27, 2017
Small business taxes haven't increased, and income taxes have gone down for the majority. https://t.co/zRWW1m8x1Q
— Dale Smith (@journo_dale) August 27, 2017
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.
https://twitter.com/kevinmilligan/status/901968685358649344
https://twitter.com/kevinmilligan/status/901969955939278848
https://twitter.com/kevinmilligan/status/901970599068672000
https://twitter.com/kevinmilligan/status/901971414860697600
https://twitter.com/kevinmilligan/status/901972141523873792
https://twitter.com/kevinmilligan/status/901972867083935744
https://twitter.com/kevinmilligan/status/901973980210454528
https://twitter.com/kevinmilligan/status/901974636090408960
https://twitter.com/kevinmilligan/status/901975330579087363
Milligan left it with this helpful reminder that questioning is a good thing, but also reminded us that he too can bring the shade.
https://twitter.com/kevinmilligan/status/901980669663776768
— Dale Smith (@journo_dale) August 28, 2017
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.
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.
Statement from Duffy. He’s doing it for the principle of ensuring that people on the Hill have Charter protections, apparently. #cdnpoli pic.twitter.com/bQxzN9iRAT
— Dale Smith (@journo_dale) August 24, 2017
*coughs* pic.twitter.com/6RAbBBv9zt
— Dale Smith (@journo_dale) August 24, 2017
Such a hero.
https://twitter.com/alisoncrawford5/status/900772376023113729
https://twitter.com/alisoncrawford5/status/900772544394997760
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.
https://twitter.com/pmlagasse/status/900782489937084416
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.
1/ So here's my first of many questions about Duffy civil suit. https://t.co/lNJxj16usF
— Peter Sankoff (@petersankoff) August 24, 2017
2/ Assuming this gets to trial, is the trial court bound by the conclusions of Vaillancourt J?
— Peter Sankoff (@petersankoff) August 24, 2017
3/ Some of his Honour's conclusions were … shall we go with "interesting"? @cmathen
— Peter Sankoff (@petersankoff) August 24, 2017
4/ I am not sure issue estoppel applies. After all, govt of Canada, RCMP were not parties to the prosecution. Anyone have ideas?
— Peter Sankoff (@petersankoff) August 24, 2017
https://twitter.com/cmathen/status/900796074029395971
https://twitter.com/cmathen/status/900796765833756673
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.
https://twitter.com/cmathen/status/900915036637593600