Roundup: Will American tax changes affect us?

With the excitement building over that coming US tax cut legislation (if one can call it that), we have already started seeing reaction here in Canada about how we should react, and while there has been some predictable demands that we start cutting our own corporate taxes yet again, others have called for a more pragmatic approach. In the Financial Post, Jack Mintz foretold doom for our economy in the face of these changes. With that in mind, Kevin Milligan tweeted out some thoughts:

https://twitter.com/kevinmilligan/status/943147447957667840

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It also hasn’t gone unnoticed that these changes will create all manner of new loopholes around personal incorporation to avoid paying income taxes – kind of like Canada has been cracking down on this past year. Imagine that.

https://twitter.com/AaronWherry/status/943192234958221313

https://twitter.com/AaronWherry/status/943193234817404929

To that end, Milligan offered a few more thoughts about the experience around implementing these kinds of changes.

https://twitter.com/kevinmilligan/status/943179468205473792

https://twitter.com/kevinmilligan/status/943180201596350464

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Meanwhile, my Loonie Politics column looks at whether the process used by that American tax bill could happen in Canada. Short answer: no.

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Roundup: A revealing confession

When I saw the initial tweet, I can’t tell you how hard my eyes rolled, precisely because this sort of shtick is David Akin’s specialty – asking non-sequitur questions at inappropriate moments to try and generate a different headline, oftentimes to manufacture outrage (and oftentimes to the detriment of other reporters who had serious questions to ask when questions were limited). And some of the reactions to said tweet were pretty great too.

https://twitter.com/davidakin/status/937918915987906560

But reading Trudeau’s response, it was a bit of a warning klaxon for me, because of how this has been quietly playing out over the course of the past couple of years in the ways that Trudeau and his government has been trying to “reform” the way that business happens in the House of Commons – you know, to “modernize” the way that it functions.

…As we look at electoral structures, which is one of the questions that was specifically asked, we’ve had a certain level of discussions around electoral and democratic reform in Canada that leave me looking to the mother of all parliaments. Obviously, the U.K. does a significantly better job than us in programming legislation and getting that through the House. I think there is issue to admire on that. On the other hand, we were glad to adopt the prime minister’s question period model from the U.K. I think there’s lots to draw on when you look at our democratic structures from the mother of all parliaments.

The two key takeaways there are programming legislation, and prime minister’s questions. This isn’t the first time that programming motions have come up – back in the spring, the opposition filibustered the government over a proposal to include programming motions as part of Bardish Chagger’s “discussion paper” on suggested changes to procedure, and it seems that Trudeau hasn’t given up on the notion. I know that some people like programming motions because it helps create more orderly debates, and helps to move legislation though the chamber a lot more swiftly. But that’s partially why I’m not a huge fan of it, because creates the default assumption that the Commons is there to process legislation instead of holding government to account. Granted, we’ve gotten a bit dysfunctional in our parliament because opposition parties (and the NDP in particular) have an inability to let debate collapse in a reasonable timeframe which brings up the need for time allocation, and programming motions are just that – time allocation for all stages of a debate as it gets tabled. We should be trying to get parliament back to a better state of debate rather than resorting to programming, because that will help snuff out what little life remains in our parliament – it will make the speeches that much more rote and pro forma rather than having a miniscule chance for actual debate. As for PMQs, Trudeau’s grand experiment with it here has not proven to be that illuminating, and has instead created a perverse incentive for the Conservatives to instead bombard him with the same question eleventy times than to use it productively, and even when backbenchers do ask varied questions, they get mere platitude responses rather than substantive ones. It’s not like the UK’s, and so I find Trudeau’s response to Akin far more dubious as a result.

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Roundup: The abuse of “appearance”

Breaking! Ethics Commissioner wants to talk to Bill Morneau about that share sale! To which I immediately yawn and say, “Yeah, and?” Because we are beyond the point where any of these stories are actually advancing the story in a substantive manner, and we’re well past innuendo, and are now onto a full-on pile-on in the attempts to make something, anything, stick.

https://twitter.com/aradwanski/status/936327645331181568

This attempt to try and create some issue around insider trading has been nothing short of ludicrous because none of the facts bear the slightest scrutiny, nor does any of their internal logic hold-up in the face of the other allegations. If he was really interested in “insider trading” (which isn’t actually possible from his position), why wouldn’t he wait to sell those shares until he tabled Bill C-27 and Morneau Shepell’s share prices spiked (temporarily)? But really, none of it makes adds up, and Andrew Coyne constructed a pretty good takedown of the allegation here. And Mary Dawson saying she’ll give Morneau a call sounds pretty pro forma here, given that this is in response to yet another of Nathan Cullen’s demands that she look into his dealings in the vague hope of her finding something, anything, that Cullen can use to any tactical advantage. But as both the opposition and some of the more mediocre journalists in the Gallery continue to carry on this campaign, it has the very definite potential to backfire – especially as Morneau is taking the gloves off now that his father is being dragged into the fray. As Terrence Corcoran points out, the Conservatives are the ones who are now acting unethically, not Morneau (and I’m sure you could add a couple of aforementioned journalists to this list, because their reporting on this has been anything but responsible).

But when this short thread from Howard Anglin was pointed out last night, it became clear to me where the real problem lies.

https://twitter.com/howardanglin/status/936811642389594112

https://twitter.com/howardanglin/status/936813835972894720

The problem here is not Bill Morneau – it’s Justin Trudeau, and the high-minded language he put into the mandate letters about being seen to be conduct the affairs without the appearance of conflict. What that turned out to be was an invitation for abuse. Because of the word “appearance,” all that anyone – opposition MP or mediocre journalist trying to make a big score – has to do is line up unrelated or conflated facts in a completely disingenuous manner and say “See! It looks like a conflict! This goes against the mandate letter!” Never mind that none of the allegations, whether it’s the cash-for-access (which wasn’t really cash for access) caterwauling months ago, or this Morneau nonsense now, bear up under the slightest bit of scrutiny – they are simply counting on it being the appearance of a conflict, and crying foul. We’re no longer dealing with issues of substance, but rather, the manufacture of optics in deliberately dishonest ways, because Justin Trudeau gave them an open invitation to. This is the state of our democratic discourse at the end of 2017. We should be embarrassed.

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Roundup: Some actual accountability

If there’s one committee of the House of Commons that I wish I could spend more time following, it’s the Public Accounts committee. It may not be one of the sexier committees tackling the hot issues of the day, but instead, it’s the heart and soul of what parliament is about – holding the government to account. Alas, my day-to-day work means that I don’t have the time to follow it like I did in years gone by, but I try to keep an eye on them when I can.

In the wake of the latest Auditor General’s report, the committee’s vice-chairs – NDP and Liberal, as the Conservatives chair this particular committee, as one might expect for a committee dedicated to holding the government accountable – are vowing that they will hold hearings on each chapter of the latest report (rather than just selected ones) because they are concerned about his level of frustration that departments aren’t keeping their focus on how services are delivered to citizens (rather than their own internal processes), and more than that, they plan to keep calling back senior civil servants to ensure that they’re shaping up. This can only be a good thing.

Over the past few years, that committee has been more stringent in ensuring that they get progress reports from departments on implementing recommendations from AG reports, but now it looks like they’re willing to go a bit further, which is encouraging. This is the kind of work that frankly, we don’t see enough of from MPs, so I’m glad it’s not only getting done, but getting a bit of attention. That can only bode well for parliamentary democracy.

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Roundup: PBO confirmations on tax changes

The Parliamentary Budget Officer came out with a report yesterday on the proposed tax changes around passive income, and all of the headlines screamed that they could net the federal government $6 billion. “Oh, but it’s not a cash grab,” opposition MPs said sarcastically in return, including during QP yesterday. The problem, of course, is that if they read, that $6 billion would be over two decades, and more importantly, that the PBO confirmed that three percent of personal corporation holders generate some 90 percent of passive income, which confirms that the point of the measures is to target those who incorporate for the sole purpose of investing and taking advantage of the lower rates as a part of that.

To help walk us through the report and its findings, here are Kevin Milligan and Lindsay Tedds:

https://twitter.com/kevinmilligan/status/933767027197489153

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https://twitter.com/LindsayTedds/status/933759825908862976

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Roundup: A cynical membership ploy

Oh, Alberta politics. For the place where I first got cut my political chops, you continue to fill me with such…outrage, particularly with how you’ve so bastardized the way in which leadership contests are supposed to run. The former Progressive Conservative party was a good example of how our system could be so debased as to turn those leadership contests into quasi-primaries that they became a direct election of the premier through instant party memberships, and usually block votes to groups such as teachers, for whom leaders like Alison Redford became indebted to. This time, it’s the antics of the upstart Alberta Party that has me fuming.

For those of you who don’t know, the Alberta Party is a centrist party of mostly hipsters and academics that aims to try and find the sweet spot of the province’s political pulse, while also not being associated with the heretofore tainted Liberal brand. (Disclosure: I was friends with one of the leadership hopefuls in the previous contest, and am friends with a previous candidate for the party in the last election; both, incidentally, are academics). And with the demise of the amorphous PC brand and its quasi-centrism in favour of Jason Kenney’s United Conservative Party and its decidedly more right-leaning brand, there is optimism within the Alberta Party that hey, maybe they can attract some of the former PC types fleeting for greener pastures. And so with that in mind, the current leader (and up until a week ago, holder of their only seat in the legislature, until an NDP defector joined the ranks) decided he was going to resign.

But – and here’s the catch – he just might run for the position again. And admitted yesterday that his resignation is a ploy to drive party memberships. And this is the part that makes me crazy, because it reinforces this sick notion that has infected our body politic that the only real reason that the grassroots membership exists any longer is for the purpose of leadership contests. And while sure, that’s important, it continues do drive this growing push that makes these contests into quasi-presidential primaries that centralises power in the leader’s office because the selection (and subsequent ability to remove said leader) rests outside of the caucus – though I will grant you that for Greg Clark, that was a caucus of one until just now.

And I get that at this point, the Alberta Party is one that isn’t as centrally-driven as other parties, and where there is trust in candidates about policy matters that they’re not just parroting talking points (so says my friend who ran for them), and that’s great. But it’s also indicative of a party without seats (which they had none until the last election), and without a taste of power. But it nevertheless follows the pattern that memberships – which Clark is trying to drive – is all about the leadership, and not about the nominations, or the grassroots policy development, or being the interlocutor between civic life and the legislature. And if they do manage to attract a bunch of former PCers, that could be either great for them, or their own demise as that party’s former culture takes over the party (which isn’t necessarily a great thing). It’s a risky move that Clark made, and it may present a change for the political landscape…or it becomes one more cynical exercise in bastardizing the meaning of grassroots party memberships. I guess we’ll have to see.

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Roundup: Mid-term check-in

Over in Maclean’s, John Geddes put together a deep dive into the current government’s midterm woes, and it’s well worth the read – and it’s a pretty long read too. But once you’re done (seriously, this post isn’t going anywhere), I would want to push back on some of the things that he highlights.

For starters, I think that there is something to be said for a government that is willing to walk back on bad promises, and they made a few. Most notably is electoral reform, and the fact that they could actually take the step of smothering it the cradle is actually something that they should be congratulated for. We dodged a bullet with that one, and I wish that my fellow journalists would get that through their heads. Likewise, Bardish Chagger taking back her plans to “modernise” the way that the House of Commons operates is similarly another dodged bullet – most of her plans were terrible and would make things worse, not better. Casting them as failures does a disservice to the fact that they backed down from bad promises. When it comes to Bill Morneau and his troubles, I think it also bears mentioning that the vast majority of the attacks against his tax proposals (and his own personal ethics situation) are largely unfounded, based on disingenuous framing or outright lies designed to try and wound him. The attacks have largely not been about the policies themselves (even though there were actual problems that should have been asked about more), and I think that bears some mention.

I also think that Geddes doesn’t pay enough attention to some of the backroom process changes that the government has been spearheading, particularly on the Indigenous files – many of the problems mentioned need to have capacity issues addressed before funding is increased because we have seen numerous examples of places where money was shovelled out without that capacity-building being done, and it made situations worse. Is it frustrating that some of this is going slowly? Yes. But some of the ground-up work of reforming how the whole system works, and ensuring that once more money flows that it can be spent effectively is something that we should be talking more about, because process matters. We simply don’t like to talk about it because we labour under this belief that nobody reads process stories, so we ignore them, which is why I think some of the calls about “failures” are premature or outright wrong – things are changing that we can’t immediately see. That doesn’t mean that changes aren’t happening.

Finally, there is a list of major legislation coming down the pipe, and I think it bears reminding that the focus on consultation before making some of these changes is as much about inoculating the government against criticism that was levelled against their predecessors as it was about trying to get some of this complex legislation right. Do they get it right all the time? No. There is a demonstrated record of barrelling ahead on things with good intentions and not properly thinking through the consequences *cough*Access to Information*cough* and when it blows up in their faces, they’re not really sure how to respond because they think that their good intentions count for something. I’m not sure that simply focusing on the perceived inexperience of ministers helps when it comes to trying to meaningfully discuss these issues, but here we are.

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Roundup: Trying to score dangerous points

In amidst all of the really bad takes on Governor General Julie Payette’s commentary the other night, I find myself more than a little horrified that the Conservatives have decided to play political games around this. More specifically, they are attacking Payette obliquely by directing their comments at the prime minister, who didn’t leave well enough alone when he said it was great that the GG stood up for science. And great that she did, but this was also in the context of there being a willingness to torque the comments into a bit of a scandal, and to blow them completely out of proportion.

So what did the Conservatives do? It started with a Members’ Statement before QP, where MP Ziad Aboultaif denounced the supposed attack by the PM on people of faith (which isn’t what happened), and was followed up by a Facebook post by Andrew Scheer who said much the same thing – entirely ignoring that Trudeau is a practicing Catholic who has been public about the value that he places on his faith.

But what irks me the most about all of this is that it’s an example where our elected officials keep being cute about our most vital institutions – the Crown – and politicising them in subtle ways. When the Conservatives were in power, it was aggressively giving things a royal re-brand (which, don’t get me wrong, I’m in favour of), but the manner in which it was handled, along with the abdication on the opposition benches of similarly owning the fact that this country is a constitutional monarchy, allowed the media to paint the exercise as a Conservative nostalgia for the days of colonialism, and to tar the whole of our monarchical institutions with a partisan taint. And I fear that Scheer is going down the same path here in trying to stir up controversy around these largely innocuous statements by the GG in order to try and whip up his base. It’s a very dangerous game, especially because Scheer and his entourage have proven themselves to be ham-fisted in pretty much everything that they do, and that increases the chances of this blowing up in everyone’s faces, and the very last thing we need to do is try to politicize the Crown or the GG in this country. So seriously – knock it the hell off. This is not something that’s worth scoring a few cheap partisan points off of. You’ll only hurt everyone in the process.

Meanwhile, Colby Cosh has made one of the only reasonable takes on the Payette comments in noting that we don’t have rulebooks for Governors General, so they should stick to principles about appearing to arbitrate impartially, particularly because of the powers she possesses. And he’s right. And I would also add that it’s why I find the furore overblown – the existence of climate change and evolution are not partisan issues in Canada, so she’s not actually crossing any partisan lines in her comments. My own weekend column delves further into that aspect, as well as the reminder that she’s not actually a figurehead like so many of the pearl clutchers seem to be demanding from their fainting couches.

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Roundup: Harper unhappy with NAFTA talks

Stephen Harper has apparently written an angry memo to his clients about the governmetn’s handling of the NAFTA negotiations, accusing them of bungling them by not evaluating American demands seriously (err, you have seen how many of their demands are literal impossibilities, right?) and of ignoring a softwood deal (which officials say was never on the table), and of aligning themselves too much with Mexico when they were the targets of America’s ire. Canadian officials are none too pleased, and consider it a gift to the Trump administration.

Alex Panetta, the Canadian Press reporter who broke the story, has more commentary below.

Paul Wells offered a few thoughts of his own on the news.

https://twitter.com/inklesspw/status/924052193673543680

https://twitter.com/InklessPW/status/924052610776055808

Incidentally, the PM has also vocally disagreed with former Conservative minister James Moore’s assertion that trade talks with China are hurting our talks with the Americans.

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Roundup: Is there meaning to staff changes?

The Hill Times had an interesting piece out yesterday about staffing changes into and out of the PMO, and what it says about the culture of central control in the Trudeau-led government. While some of the commentary from former Conservative staffers about the marked similarities could be seen as trouble-making (and indeed, I’m not sure that we are quite at the level of central control that was exerted under the Harper years), I do think there is a kernel of truth in there which may simply be a reflection of politics in the 21st century, which is heavy on message discipline in order to deal with the pressures of a media apparatus that was not as strident as it was during the days of cabinet government of yore. Add to that, the increasingly horizontal power structures mean that the mere act of governing is not the same as it was during those days, so the ways in which the practice of government has evolved should be a consideration.

Nevertheless, the movement of this staff is quite likely indicative of more than just the usual cross-pollination that takes place over the course of a government, and the concerns about rookie ministers needing more hand-holding are probably not unfounded, and there have definitely been some stories of certain ministers having chronic staffing problems that can’t be dismissed out of hand. Nor can former staffers’ concerns about movement being based on connections over ability be shrugged off either, though one has to wonder if it was ever always thus, and it just manifests itself in slightly different ways today than in the past. In all, while I disbelieve the notion that the Trudeau PMO is just the Harper PMO redux, I will agree that there are probably a few more similarities than either would like to admit to openly.

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