Roundup: Signs Morneau is listening

For all of the bellyaching from those who consider the government’s tax proposals to be a done deal that may not even get enabling legislation but would instead be rammed through by way of a Ways and Means Motion, it looks like those fears are for naught. In a tele-town hall yesterday, Bill Morneau admitted that there are problem areas that need to be addressed, and they plan to take what they’ve heard in the consultations and try to fix the implementing legislation, especially when it comes to things like how it affects the sale of family farms. Economist Lindsay Tedds was listening in, and she provided a play-by-play with some instant analysis here:

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Meanwhile, Chantal Hébert wonders if Morneau can’t pull out a win that will let both sides claim victory, even if Morneau himself emerges wounded from the process. This being said, Hébert makes the point about the lack of applause from the Liberal benches, which Bob Fife made on The West Block on the weekend, and it bugs me that pundits are still trying to read into this because the Liberals stopped clapping in January 2016, except for rare verbal zingers. It’s not indicative of anything other than an attempt to restore a bit of dignity to the exercise of QP, and making a deal out of it to fit a narrative is bad form.

The Senate’s National Finance committee will examine the proposals as well, and the debate getting there contained some of the usual cheek of some particular senators.

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QP: Trudeau starts hitting back

With a storm on the horizon, the House of Commons assembled after caucus meetings, ready for another day of baying at the moon over proposed tax changes. Just before QP, Andrew Scheer have a member’s statement about the emergency debate on the plight of the Rohingya, after which he crossed the floor to have a quick chat with Justin Trudeau. When QP got underway, Scheer led off by noting that he would be at the dedication for the National Holocaust Memorial and invited the PM to discuss why it’s important. Trudeau got up to make a statement on just that, and he read a statement on the horrors of the Holocaust and to offer the statement of “Never again.” Scheer then switched to French and back to his tax change straw men, wanting confirmation that Trudeau’s family fortune would not be affected. Trudeau note the issue of ensuring that the wealthiest Canadians pay their share of taxes. Scheer asked the same again in English, and got the same answer, with Trudeau stressing that this was not about people not following the rules, but that the rules favoured the wealthy. Scheer insisted that the litany of cancelled tax credits amounted to tax hikes as his condemnation of these changes, Trudeau noted that Scheer was trying to re-fight the 2015 election. Scheer insisted that they were the voice of the “millions” that would be hurt by these changes and then kicked at the PM for meeting Chinese Billionaires™, to which Trudeau listed all of the businesses who were looking for access to the Chinese market. Thomas Mulcair was up next, worried about the duties the US placed on Bombardier, and demanded that those jobs be saved. Trudeau noted that Chrystia Freeland raised that with her American counterpart earlier this morning, and that they would fight for those jobs. Mulcair groused about Trudeau’s inability to deal with Trump, and got much the same response. Mulcair then railed that the government was failing on Access to Information, and Trudeau read a list of ways that they were making things more transparent, before they went for another round of the very same in French.

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Roundup: The needless drama over the Status of Women chair

The news yesterday that the Liberals on the Commons standing committee on the status of women walked out rather than vote on the Conservatives’ choice for chair, Rachael Harder, certainly had a bit of drama to it, but underneath that surface-level bit of excitement, so much of this story defies sense.

For starters, it makes no sense that the Conservatives would name their chosen critic for the portfolio to be the committee chair. Why? Because a committee chair is supposed to be a somewhat more neutral figure who presides over the meetings in order to maintain decorum, decide on questions of order and procedure, and only vote in the event of breaking a tie. These are qualities that a critic should be dealing with. No, a critic should be doing the work of leading the questions of witnesses and doing the work of holding the government to account. That is not the chair’s job. Furthermore, if Andrew Scheer is going to insist on calling his critics “shadow ministers,” then perhaps he should actually treat them as such which means not having them on committees at all – and yes, the semantic difference is important. If you want to implement a shadow ministerial system then start behaving like that’s what they are. Otherwise, changing their nomenclature is nothing more than a twee affectation that he shouldn’t get so uppity about (and he has been).

Meanwhile, for the rest of the day, the Conservatives tried to spin this as a distraction from the tax change proposals that they are otherwise getting hammered on when they put her up for the position of chair knowing full well that this would be an issue. The NDP were out on Monday afternoon in the Foyer decrying this possibility and they went ahead with it. They created their own distraction and then tried to spin it as the Liberals using it as such. The Liberals didn’t create this drama, so you can’t accuse them of creating something from nothing.

The Conservatives have three members on the committee – Harder, Karen Vecchio, and Martin Shields, and if it makes no sense to put the critic in the role of chair, then why not put Vecchio forward? Is it because she isn’t looked kindly upon by Campaign Life Coalition? I would have thought her more than capable of the role otherwise, which is why this mystifies me unless this is something that the Conservatives were looking to try and force a confrontation of some variety by putting forward a critic and then candidate for Chair that would deliberately offend the sensibilities of the other parties – something that you shouldn’t be doing in a committee setting because committees, as the lifeblood of parliament, are supposed to be less partisan and more collegial.

This is just one more example of how the current iteration of the Conservative party doesn’t seem to know what it’s doing. Since Scheer took over the leadership, there seems to have been a sudden loss of know-how amongst the party’s senior staffers and they’re making all manner of really dumb tactical mistakes. You also have to wonder how much of this is also because the party had spent their nine years in power trying to burn down many of the norms of our parliamentary system and treating the institutions with utter disdain, and now that they’re back in opposition, they have simply lost the capacity to engage with them properly, leading to these kinds of mindless choices that just shoot themselves in the foot. It’s not promising for a party that is supposed to be considered a government in waiting.

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Roundup: A new ministerial directive

The government came out with their updated Ministerial Directive on safeguards against using information obtained through torture, tightening the language, but still keeping some ability to act on such information in very limited circumstances, much to the chagrin of the NDP and several civil society groups. After all, the NDP have been howling about this in Question Period for months now, and now that it’s finally happened, and it’s not what they’re calling for, I’m sure that we’ll be in for weeks and weeks of this yet again in QP. That being said, some national security experts are saying that the government pretty much got it right given the complexity of the situation, so I’ll leave you with Stephanie Carvin to explain it all.

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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.

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.

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Roundup: More tax change caterwauling

Another day, and more moaning about the proposed small business tax changes, which have now been equated to “class warfare”! Yes, a pair of tax lawyers wrote in the Financial Post yesterday about how the ability for small business owners to split their income with stay-at-home spouses was great policy because it was first proposed back in 1966. I kid you not. Fortunately, economist Kevin Milligan is back after a few days offline, and can help sort some of this out.

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And then there’s this kind of silly thinking:

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Government is not a business. It cannot be run like one, no matter how many times people like to chant it as a slogan. It fundamentally does not operate in the same way, nor can it ever run in even approximately the same way. The absolute fundamental principles do not translate because government has no bottom line. The sooner people grasp this, the sooner we may have more rational discussions on how to better operate government in a sane and rational manner.

Meanwhile, Andrew Coyne is unconvinced by all of the caterwauling about the proposed changes, not seeing the moral advantage that small businesspeople are apparently owed, and suggests instead that the incentives to incorporate be reduced by bringing the topline personal income tax rate and the small business rate closer together.

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Roundup: A Northern SCC justice?

The government announced yesterday that they have begun the process for searching for the next Supreme Court of Canada justice, which it should be noted is almost record-breaking in how fast they got this particular process started, as normally it takes them six months to a year to get a process even started, by which time the vacancy has happened and terms need to be extended (which isn’t possible in this case). And while this is notable in and of itself, there was something else notable – that they are explicitly looking for a justice from either the West or the North.

Why this is important is because it seems to demonstrate that they learned their lesson from the previous SCC appointment process, when they toyed with finding a justice who was not from Atlantic Canada despite it being a traditionally Atlantic Canadian seat that was vacant, and there was some pretty big uproar which they tried to pooh-pooh with talking points about how some of those federalist notions were perhaps a bit archaic and they were trying to find a bilingual justice (which was difficult for that region, even more so if they were trying to find someone Indigenous or a person of colour). That will be less of a problem in the West, but the fact that they also mentioned the North is a bit curious.

As it stands, some territorial cases, particularly at the appeal level, are heard in courts in provinces like BC or sometimes Ontario, because there simply aren’t enough judges and infrastructure in place to do the job up North. And while it’s not necessary that one be a judge to get a Supreme Court nomination (they must be a member of the bar, but can come from private practice or even a law school), it is a bit peculiar that they have expanded their search in such a way. It is the first time that such a consideration has been made, which is no doubt part of this government’s constant attempts to pat themselves on the back, and their language about the “custom of regional representation” still sounds a bit like they’re making it out to be less of an important deal than it is, which is a problem because the principles of federalism are a pretty big deal given how this country works. I would say that it also raises the possibility of raising hackles in the West because it could open them up to accusations that they’re depriving the West of representation on the Court (the West typically has two seats, one of which is currently held by Justice Brown from Alberta, so no, Alberta has no room to raise a fuss), but one could imagine that BC would very well make an issue of it if they felt like it. Granted, if they do find someone from the North, it could provide some greater perspective on the Court – or it could simply be yet another reason for back-patting. We’ll find out in a few months’ time when the decision is made. (And for the record, the plan is to name the new Chief Justice after the vacancy is filled).

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Roundup: Clarity is not an appeal

With another court case involving First Nations children, you’d expect there to be a bunch of hue and cry, and there certainly has been, but I wonder how much of it is actually misplaced. In this case, the government is seeking clarity from the court on a couple of aspects of the Canadian Human Rights Tribunal decision on applying Jordan’s Principle, which is not an appeal. I’ve seen all manner of people, from reporters to advocates on Twitter railing that the government is appealing the decision. Asking for clarity is not an appeal.

If you actually read the story, they have legitimate concerns about the restrictions around case conferencing and on timelines in the decision, both of which seem to be pretty fair concerns to have given that both ministers are medical doctors and have expertise in what these issues mean. And I fail to see how getting clarity is trying to find a loophole to get out of the decision – it doesn’t track with either the promises, the investments made, or the fact that the whole file is more complex than many of the advocates would let on. You can’t simply pour money into a system that doesn’t have the capacity to absorb it and distribute it effectively, and you can’t just wave a magic wand into a jurisdictional minefield like this particular decision addresses and expect that everything will always have the best outcome by sheer force of willpower, especially when there are areas that are unclear to players involved.

The fact that I’ve been a justice reporter for the past couple of years means that I’ve been exposed to a lot of the sensitivities involved in complex cases, and this certainly qualifies, despite what certain advocates and opposition MPs would have one believe. Outrage that the government is going to court isn’t necessarily warranted, and most of the time, it’s been pretty disingenuous, whether it’s on this case, or in assessing the damages in the Sixties Scoop class action, where again advocates, opposition MPs, and even reporters characterized it as an appeal when it wasn’t an appeal – it was the next stage in a process where they needed to determine damages on a case-by-case basis rather than simply mailing out cheques. Not every time the government goes to court is nefarious, and people need to calm down because there is a lot of crying wolf going on that’s helping nobody, most especially the people who these decisions are supposed to benefit.

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QP: Final accusations of the spring

One what was almost certainly the final sitting day (for real!), and after a number of statements for National Aboriginal Day (to be renamed next year), QP was on. Andrew Scheer led off, worrying that the changes to national security laws will make things too difficult for CSIS to do their jobs, per the fears of a former director. Justin Trudeau assured him that they we getting the balance right of safety and protecting rights. Scheer worried that security was being watered down, and Trudeau reiterated that they were getting the balance right. Scheer then changed to the issue of taxes and demanded he listened to the Liberal senators and stop the escalator taxes on beer and wine, and Trudeau reminded him that they lowered taxes on the middle class. Scheer railed about how they were hiking taxes on ordinary people (and no, cancelling a bunch of tax credits does not equal raising taxes), and Trudeau reiterated his response. For his final question, Scheer spun up a hyperbolic rant about all of the awful things the government has done, and Trudeau responded with a list of accomplishments and promises kept. Thomas Mulcair was up next, accusing the government betraying their promises to Indigenous people, and Trudeau assured him that they were committed to reconciliation and the relationship. Mulcair accused the government of breaking their promises on Access to Information, and Trudeau hit back that the NDP were completely absent on the transparency file. Mulcair worried about the Infrastructure Bank and the spectre of user fees, and Trudeau reminded him that they were looking for new ways to invest in the things Canadians need. For his final question, Mulcair railed about fundraisers, and Trudeau said that they were raising the bar and were exhorting the opposition to do the same.

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QP: Tired jabs and deficit questions

Nearly all the desks were filled on what was possibly the final QP of the spring. Andrew Scheer led off, concerned about the “astronomical” debt the Liberals were leaving behind (which, in absolute terms, is one of the envies of the world because it’s quite low). Justin Trudeau reminded him that they won the election on promises to invest. Scheer tried again, giving a lame “budgets don’t balance themselves” quip, and Trudeau again reminded him that they needed to invest after the previous government didn’t and hey, lower taxes for the middle class and the Canada Child Benefit. Scheer railed about all of the new taxes being levied (most of which were not new taxes but cancelled tax credits that had little efficacy), and the PM reiterated that he lowered taxes. Scheer jabbed that Trudeau had never been part of the middle class, and Trudeau hit back that boutique tax credits and lower taxes on the wealthiest didn’t help those who needed it the most. Scheer then turned to the new national security bill, saying it removed needed tools for law enforcement agencies. Trudeau noted that they were balancing community safety with rights and freedoms, and that they welcomed recommendations for amendments. Thomas Mulcair was up next, grousing that the government broke their promise on allowing Access to Information requests to ministers offices and the PMO. Trudeau simply noted that they made the biggest reforms to the bills and increased proactive disclosure. Mulcair tried again with added mocking, but Trudeau didn’t budge, and Mulcair then railed that they kicked journalists out of a party fundraiser. Trudeau reminded him that they have raised the bar on transparency and that other parties weren’t doing. Mulcair tried again in French, but Trudeau’s answer didn’t change.

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