Tag Archives: Trade

QP: Tax change melodrama

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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

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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: Digs at the current leader

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The NDP had their final official leadership debate yesterday in Vancouver, and it was about as exciting as any of their debates have been so far. But scratching beneath the surface, there was an undercurrent that was playing out which was deeply critical of the way that the party has been run under the leadership of Thomas Mulcair, and why they planned to fix it.

One of the points that was noted several times by both Guy Caron and Charlie Angus was that the caucus was being underutilised when it comes to outreach, and furthermore, Angus was very critical about the way in which the grassroots membership was being taken for granted and dictated to rather than giving input into the process. While this is really par for the course in pretty much all parties these days, thanks to top-down leadership styles brought on by the fact that we now run leadership contests as presidential primaries in this country (and the fact that these very same candidates are playing into it with competing policy platforms that were developed by their own teams rather than the grassroots membership), the fact that they hammered away at the caucus being underutilised was something that stuck out for me, because it certainly implies that Mulcair has been running a party-of-one (and yes, those are shades of Stephen Harper you’re seeing). But while Angus and Caron talked about not enough effort being made to translate what was going on in the House of Commons to their base, one has to wonder how they plan to remedy that, and whether we’re going to see an explosion of YouTube clips of MP speeches (which are generally terrible recitations of scripts into the record) attached to more fundraising demands, demonstrating the “good work” that they’re doing in Ottawa.

Meanwhile, here’s Éric Grenier’s analysis of the various endorsements of the candidates, and what the breakdown of them looks like regionally, while Jagmeet Singh dropped a new policy proposal of decriminalising all illicit drug possession as a harm reduction measure, much as Portugal did.

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Roundup: Picking the overseers

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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: A shuffle and a split

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So, there was that relatively small cabinet shuffle yesterday, some of which was telegraphed in advance, some of which became the subject of wild speculation as Trudeau seemingly threw in a couple of red herrings for the pundits to go wildly chasing to no end (LeBlanc and Wilson-Raybould especially). In the end, the new faces are Seamus O’Regan at Veterans Affairs and Ginette Petitpas Taylor to Health, while Carla Qualtrough moves to Public Services and Procurement, Kent Hehr takes over sport and disabilities, and in the biggest move, Jane Philpott moves over to a split Indigenous Affairs portfolio, so that Carolyn Bennett now becomes minister of Crown-Indigenous Relations, and Philpott becomes minister of Indigenous Services. While it’s hard to say that Hehr’s move is anything but a demotion, O’Regan’s move is being noted both for his close friendship with Justin Trudeau, as well as his move from rehab to the cabinet table, for what it’s worth. Also of note is the fact that new mandate letters will be forthcoming in the next few weeks, while there was a bit of panic when the old ones were re-issued with new names for the time being.

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The real news is the fact that Bennett and Philpott’s joint mandate will be to ultimately dismantle Indigenous and Northern Affairs and to create two separate departments that will move the files toward greater self-governance and be a less paternalistic structure for Indigenous communities to deal with – especially since the current structure does not currently suit the North well for Inuit communities, or Métis. Complaints about the creaky bureaucracy hampering the Indigenous file are constant, and structural reform like this is probably the next logical step in moving those particular files forward, but there are already detractors moaning that this will just mean double the bureaucracy and double the obfuscation. Maybe. I’m also dismayed by commentary from the likes of Hayden King who dismiss what the government has done to date as being symbolism and process. Why that bugs me is because process is important. Democracy is process. Changing the fundamental ways in which things happen – i.e. process – is important can’t just be shrugged off because it doesn’t turn into an instant fix. These kinds of issues are systemic and stubborn, and sometimes changing process to get the wheels turning is actual progress, even if it takes a while to see the results. None of this happens overnight – indeed, dismantling INAC won’t either, and step one is yet another consultation process on what the end goals are going to look like so that they can make the split with those in mind. And no doubt, we’ll hear yet more naysayers, but these are changes that will take time to happen.

AFN National Chief Perry Bellegarde is happy with the change as a next step to dismantling the Indian Act. Susan Delacourt sees Trudeau keeping his friends close in this shuffle, while Chantal Hébert notes that the Canada-US files remain untouched in the shuffle, which points to how Trudeau is targeted isolated problems while looking to stay the course with the NAFTA talks. Paul Wells looks at Jane Philpott as this government’s go-to fixer, while Aaron Wherry notes the two doctors now in charge of the Indigenous portfolios and what that may mean.

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Roundup: That fictional “crippling tax hike”

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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: Mike Duffy, white knight

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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.

https://twitter.com/cmathen/status/900915036637593600

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Roundup: Preferential tax treatment warranted?

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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

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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

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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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