Tag Archives: Pensions

Roundup: On those marginal tax rates

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Given the debate that his happening south of the border when it comes to agitation for a 70 percent marginal tax rate on high earners, it’s only a matter of time before the left-leaning contingent of Twitter starts agitating for the same here. The problem, of course, is that you can’t simply import the same concepts between the US and Canada and expect it to be analogous, or at the very least analogous at one tenth the figures in the US. To demonstrate, economist Kevin Milligan took the Canadian data and mapped out what that would mean here. And lo, it’s not an analogous situation (though I suspect it won’t stop left-leaning Twitter from repeating these American talking points one bit).

https://twitter.com/kevinmilligan/status/1082383660857225217

https://twitter.com/kevinmilligan/status/1082385072718635008

https://twitter.com/kevinmilligan/status/1082386430175862784

https://twitter.com/kevinmilligan/status/1082387490319683584

https://twitter.com/kevinmilligan/status/1082411856315084805

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QP: A narrative of doom

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While Justin Trudeau was in Montreal to pre-meet with some premiers in advance of the first ministers’ conference, Andrew Scheer was present, fresh from being booed by the chiefs at the Assembly of First Nations, and he led off with the false notion that premiers had to resort to threats before the oil and gas sector was on the agenda at the first ministers’ meeting, and surprisingly, Diane Lebouthillier got up to read that they were taking measures to help the workers. Scheer then worried that the Crown lawyers were trying to block the Canadian Taxpayers Federation from intervening at the Saskatchewan carbon tax court challenge, to which Amarjeet Sohi replier that they were trying to fix a broken pipeline system that we inherited from the Harper government — which wasn’t the question. Scheer railed that the government was trying to phase out the energy sector and demanded that Bill C-69 be withdrawn, to which Sohi replied that when the government tried to extend EI supports for laid off workers, the Conservatives voted against it and funding for orphan oil wells. Gérard Deltell worried about the economic turbulence meaning higher interest rates — which, actually, would be a sign of a good economy — and Scott Brison reminded him that when they took office, the country was in a technical recession and the current government turned it around. Deltell tried again, and got the same answer. Guy Caron was up next for the NDP, and raising the Trans Mountain pipeline, wondered when ten government would take its responsibilities to Indigenous communities seriously. Sohi said that they were taking the renewed consultations seriously. Caron worried that Trudeau was dismissive of a First Nations Chief yesterday, to which Philpott got up to defend the PM’s honour. Rachel Blaney took over to rail about “free, prior and informed consent,” and Sohi repeated their renewed consultations. When Blaney repeated the demand that Trudeau apologise to that BC Chief, Philpott again defended the PM.

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Senate QP: Bland assurances from Morneau (part eleventy)

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Things got underway a few minutes early, as finance minister Bill Morneau arrived in the Senate for what promised to be a day full of pointed questions and pabulum answers – Morneau’s particular specialty. Senator Larry Smith led off, asking about the $9.5 billion budgeted in the fiscal update for “non-announced measures,” and Morneau responded with bland assurances about getting the right balance in the budget. Smith noted that he didn’t actually answer the question and that they needed to hold government to account, to which Morneau said quite right, but again didn’t answer, and offered more pabulum talking points about dealing with challenges while still trending the deficit downward.

Senator Batters was up next, and brought up the PM’s comments on social impacts of male construction workers to rural areas, citing that she only sees benefits. Morneau first cited that they look at employment on projects, and then noted gender-based lens for impacts, but didn’t elaborate on the construction worker issue.

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QP: A bizarre question to Trump

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The prime minister was present today, the third day this week, but Andrew Scheer was elsewhere. That left Gérard Deltell to lead off, asking about the announced job losses at Bombardier, and he worried about the federal loan extended to the company. Justin Trudeau took up a script to say that their thoughts were with those affected, before reading praise about the Canadian aerospace sector. Deltell moved onto Di Iorio’s planned resignation, and worried it would be too late for a by-election. Trudeau read that the member intended to resign. Deltell asked about Di Iorio’s “special mission,” and Trudeau read a similar script about how MPs are expected to work on behalf of there constituents. Mark Strahl got up next to rail about Tori Stafford’s killer, and demanded an apology to Stafford’s family for forcing them to fight the government. Trudeau read that they reviewed the medium security transfer policies and they made improvements. Strahl railed about how that was an admission that they had the power to transfer her beforehand, and Trudeau didn’t use a script this time to reiterate the same response, with added empathy to the family. Guy Caron was up next, returning to the topic of Bombardier, but was particularly concerned about its executive bonuses. Trudeau picked his script back up to read about their thoughts with the workers and yay aerospace. Caron switched to English to Rae the question again, and Trudeau responded by reading the English version of his own script. Tracey Ramsey was incredulous that the prime minister said he wouldn’t have his photo taken signing the new NAFTA so long as the steel and aluminium tariffs were in place. Trudeau quipped that Ramsey’s region was in favour of the agreement before reading about his support for the industries affected. Alexandre Boulerice got up to repeat the question in French, to which Trudeau read Boulerice’s praise for the agreement.

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QP: Mendacious privacy concerns

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For the first time this week, all of the leaders were present for QP, and Andrew Scheer led off, and he decried the “intrusions” of StatsCan collecting financial transaction data. Justin Trudeau, as he did the last two days, read a script to assure Canadians that the data is anonymised, and that they are working with the Privacy Commissioner. Scheer insisted that this was an extraordinary, and Trudeau dropped the script, and insisted that privacy was being protected. Scheer tried again, ignoring that the data was anonymised, and Trudeau hit back by decrying the Conservatives’ quest to eliminate data and evidence that they find to be inconvenient. Scheer went yet again, and this time Trudeau called it an attempt to sow fear and division. Scheer raised the number of government privacy breaches that resulted in a class-action lawsuit, to which Trudeau paid had his respect for the work of the Privacy Commissioner while the Conservatives continued to play politics over it. Guy Caron was up next for the NDP, demanding web giants be taxed like is happening in the UK and Spain. Trudeau read a script about how they were reviewing the Broadcasting Act and to point out how much they have invested in the cultural sector. Caron switched tracks to complain that CRA was only after going the little guys and not major tax evaders, to which Trudeau read about the investments they’ve made in CRA to combat tax evasion. Nathan Cullen was up next to demand that outstanding by-elections be called, and Trudeau assured him that he would call those by-elections soon. Cullen tried again, and this time, Trudeau praised their new elections legislation.

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QP: StatsCan surveillance?

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Justin Trudeau was again in Question Period today, while Andrew Scheer was off to Queen’s Park to meet with Doug Ford, sans media availability. That left Lisa Raitt to lead off, worrying about the Statistics Canada plan to access financial information for their purposes. Trudeau took up a script to read that the data was anonymised and that it was for statistical purposes only, and that they were working with the Privacy Commissioner. Raitt equated this to another issue related to a credit monitoring agency being asked to turn over data. Trudeau took up a second script to read about the sins of the Conservatives when it comes to StatsCan, and assured her that privacy was being protected. Raitt pressed, and Trudeau snarked that the Conservatives remained the party of Stephen Harper. Alain Rayes took over in French, got the same scripted reply, and on a follow-up, Trudeau dropped the script to make the Harper digs. Guy Caron was up next for the NDP, and he asked about the lack of CRA’s progress in going after anyone from the Panama Papers. Trudeau read a script about CRA doing a great job. Caron raised the court case regarding charities before doubling back to lack of progress, and Trudeau dropped the script this time to praise the investment his government made in CRA to recover evaded taxes. Peter Julian took over in English, with added invective, and Trudeau read the English version of his script, and for his final question, Julian demanded by-elections be called, and Trudeau picked up another script to read more about the CRA.

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Roundup: Changing the accounting rules

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There were some fairly big changes announced yesterday, but the way in which it was reported was interesting if you compared coverage. For example, The Canadian Press led with the headline of a $19-billion federal deficit last year, but didn’t explain until the fifth paragraph that the accounting rules had changed, and described it as “confusing matters,” and then engaged in both-sidesism to have the Conservatives rail about the size of the deficit rather than really explain what the changes meant. The Financial Post mentioned the changes in the second paragraph, but focused on the size of the deficit. It was the CBC’s coverage that spent the full story focused on the accounting rules changes and what they mean, and how that affects the reporting of the figures, which has a lot to do with unfunded pension liabilities that are now being put on the books in a transparent manner that the Auditor General has been calling for, for years now. Context like this is important, and it’s disappointing to see it obscured because writing about the deficit figures is sexier without explaining what they mean, so well done there. You’re really serving your readers.

As with any of these stories, however, the best commentary came from some of the best economists on Twitter, who put it all into context. The full Kevin Milligan thread explaining it all is here, but I’ll post some select highlights.

https://twitter.com/kevinmilligan/status/1053342629574828032

https://twitter.com/kevinmilligan/status/1053346059693346816

He also busted the myths about the deficit spending by pointing to the $70 billion hole in GDP that the Liberals were left with when they took office, in part because of the oil downturn and technical recession that the Conservative narrative keeps ignoring.

https://twitter.com/kevinmilligan/status/1053393949417586688

https://twitter.com/kevinmilligan/status/1053395164318752768

https://twitter.com/kevinmilligan/status/1053403984411582464

Also, Mike Moffatt points out the significance of those accounting rules around pension liabilities on the reporting of the books.

https://twitter.com/MikePMoffatt/status/1053342822017982465

https://twitter.com/kevinmilligan/status/1053354656384962560

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QP: No answers about “Jihadi Jack”

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With Justin Trudeau back in town, all of the leaders were present for QP, and most of the benches were pretty full. Andrew Scheer led off, concerned that “Jihadi Jack” was approached by Canadian officials to patriate him here. Trudeau took up a script to read that they they took terrorism seriously, and were collecting evidence to bring people to justice. Scheer asked again, more slowly, and Trudeau read the another script about travelling abroad for terrorist activity being a Criminal Code offence, but didn’t answer the question. Scheer tried a third time, and Trudeau put down the script this time to praise the work of intelligence agencies and security officials, and said they wouldn’t play politics with keeping Canadians safe. Scheer tried a fourth time, and this time Trudeau accused him of distorting events to create division. Scheer tried one last time, and Scheer accused him of grasping at straws to make Canadians feel unsafe. Guy Caron was up next, and he demanded more action on climate targets, and Trudeau read a script about all the good work they’ve done to date, taking a shot at the Conservatives and the NDP along the way. After another round of the same, Nathan Cullen took over in English, and cranked up the sanctimony as he repeated the question, and Trudeau said that while they have to do more, they are on track to meet their targets. Cullen railed again about Harper’s targets, and this time Trudeau noted that pricing pollution is part of the solution, as was investing in clean technology, citing the LNG agreement as an example of being good for both the environment and the economy.

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QP: Getting better terms – really!

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While Justin Trudeau was off in Toronto meeting business leaders, Andrew Scheer was present in QP, fresh off the plane from his trip to India. Sheer led off, reading his concerns about Canadian ISIS fighters being caught by Kurdish forces, and demanded that they be brought to justice. Bill Blair responded saying that they were taking the issue seriously, and were gathering evidence to ensure that they can be prosecuted. Scheer got up and lied about the government offering poetry classes to returning foreign fighters, to which Blair retorted that the previous government brought no returning fighters to justice either. Scheer switched to French to rail about the terms of the New NAFTA, to which Chrystia Freeland assured him that they got a good deal for Canada and listed people who praised the deal. Scheer insisted that the government capitulated on a number of fronts but didn’t get movement on steel and aluminium tariffs, and Freeland replied that this was Monday morning courage, and that they said she was being too tough in negotiations. Scheer retorted that they had a case of Sunday night panic and capitulated, to which Freeland said that the party opposite now wanted to capitulate on steel and aluminium tariffs, which they would not do. Guy Caron was up next and demanded faster action on climate change and to stop using half-measures, to which Dominic LeBlanc said that they had a coherent plan to fight climate change and to grow the economy. After another round of the same, before Rachel Blaney reiterated the question in English, and LeBlanc repeated his assurances in English. Blaney tried one more time, and LeBlanc gave his assurances with a little more punctuation.

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QP: Turning Canada to a vassal state

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It being the Thursday before a constituency week, the benches were getting a bit thinner, and none of the leaders (save Elizabeth May) were present. That left Alain Rayes to lead off, reading concerns about the Americans being able to weigh in on a potential trade deal with China, and wondered what Canada got in response. Marc Garneau got up to read that the ability to withdraw from an agreement was normal. Rayes railed about all of the various concessions made, and Garneau was “mystified” that the Conservatives didn’t applaud them for getting a deal. Michael Chong was up next, and raised our sacrifices in World War I before complaining that the Article 32 in the new NAFTA makes Canada a vassal state. Garneau insisted there was no loss of sovereignty, and that any party could leave the agreement with six months’ notice. Candice Bergen was up next, and she whinged that Trudeau acted like a bully and called them names on the issue of Tori Stafford’s killer. Jean-Yves Duclos got up to read that politicians can’t make determinations about the sentencing of individual prisoners. Bergen proposed a broad policy of preventing child killers from going to healing lodges, but Duclos repeated his script. Karine Trudel led off for the NDP, worrying about the steel and aluminium tariffs still being in place. Garneau got up to read that the tariffs weren’t justified, which was Canada was retaliating. On a second go-around, Garneau gave the same response, this time without script, before Tracey Ramsey repeated the question in English, with a bit of added condemnation. Garneau reiterated the response in English, and for her final question, Ramsey demanded a task force to help small businesses affected by the tariffs, and this time, Garneau took a few shots a the NDP’s dislike of trade agreements.

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