Carrying on with yesterday’s theme, Bill Morneau decided he would try and be too cute by half and release an open letter of his own, questioning Andrew Scheer’s promise to premiers to maintain the current health and social transfer system, and claimed that he was still advocating a cut. I’m not sure that it was quite right, but it was a novel attempt – and something Morneau rarely does, so there’s that. Scheer, meanwhile, keeps on his affordability message, claiming that he’s the only one worried about it while the Liberals keep raising taxes, etc.

Yesterday, @AndrewScheer failed to commit to Canada’s existing planned increases to health care. By committing to “at least 3%”, Mr. Scheer has ignored the existing formula and our new Health Accord – that means up to $3 billion in cuts over the next two years. My full response: pic.twitter.com/VoZqFVk72J

— Bill Morneau (@Bill_Morneau) August 2, 2019

The thing is, Scheer is wrong about that. He is fond of citing that Fraser Institute report that treats the cancellation of boutique tax credits as “raising taxes” – as it also ignores the tax-free Canada Child Benefit offered to most families as a replacement, and a more targeted one that will actually benefit low-income households at that – much like he’s fond of ignoring that the climate rebates will make most households better off in jurisdictions under the federal carbon pricing system. But beyond that, the data clearly shows that the federal taxes as a share of federal revenues also continues to decline under the Liberals. Scheer’s affordability narrative as it comes to taxes is bogus. Well, except for one particular group, who is not better off under the changes that the Liberals have made. And yet, as Kevin Milligan demonstrates with data and receipts below, it’s certainly not the average Canadians that Scheer claims to be fighting for. But then again, illiberal populists claiming to be looking out for average people while benefitting the wealthiest is getting to be a tired game by this point – and yet people still keep falling for it.

https://twitter.com/kevinmilligan/status/1157388641385062401

https://twitter.com/kevinmilligan/status/1157390752697085952

https://twitter.com/kevinmilligan/status/1157394371806785536

https://twitter.com/kevinmilligan/status/1157396798412976128

https://twitter.com/kevinmilligan/status/1157439654120923136

I'd also add that measures to subsidize/lower prices of certain goods and services would also benefit those who aren't struggling.

And since those who aren't struggling spend more, they'd be the biggest beneficiaries of such a program.

The problem is incomes, not prices. https://t.co/Vmz4ahJGoo

— Stephen Gordon (@stephenfgordon) August 2, 2019

Good reads:

• While in Iqaluit, Justin Trudeau announced that they had finalized the details of their agreements on how to spend the housing dollars allocated to the region.
• Chrystia Freeland says that she raised the detained Canadians with her Chinese counterpart during their meeting this week.
• The process to add a third shipyard to the National Shipbuilding Programme is now underway – to bring in Davie Shipyard – with a guarantee of icebreaker work.
• DND personnel attending that air show in Quebec where the F-35 will be present are being told to keep their mouths shut while they’re there.
• Equal Voice apparently didn’t file certain paperwork with the CRA…for ten years.
• Here’s a fact check of Andrew Scheer’s claims that the New NAFTA was a bad deal per a CD Howe study. (Spoiler: The study didn’t say that).
• Scheer, meanwhile, refuses to answer questions about where he places himself on the conservative spectrum.
• Erin O’Toole says a Conservative government would mend ties with Saudi Arabia – while simultaneously demonizing their exports as “dirty” and “unethical oil.”
• It seems that Conservative Senator Pierre-Hugues Boisvenu is an active member of a far-right Facebook group.
• The lieutenant governor of New Brunswick Jocelyne Roy Vinneau, passed away from cancer yesterday (which threatens to put the NB government into hibernation).
• Alberta has now filed their court challenge against the federal carbon price.
• Paul Wells has his own interview with the CEO of the Infrastructure Bank.
• James Bowden offers a bit more analysis of what happens with the death of the lieutenant governor in New Brunswick.
• Kevin Carmichael writes about the effect that Trump’s trade wars are having on Canadian businesses, backed up by a new report from StatsCan on recent tariffs.
• Colby Cosh is righteously annoyed by politicians constantly describing themselves as “fighting” when they’re not really, and wants it stricken from their lexicon.
• My weekend column takes a walk down memory lane about just what we’re talking about when we rail about Trudeau breaking his promise on electoral reform.

Odds and ends:

Here’s a look at Canada’s history of xenophobia and “send them back” attitudes.

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