Tag Archives: David Ely

Roundup: Terrible capital gains narratives

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The communications around the capital gains changes have been atrocious. Chrystia Freeland is painting an apocalyptic picture of what will happen to Canadian society if we don’t make these changes, and the talk about fairness, where workers pay more taxes than those who can earn it on investment income is missing the key component of the discussion which is around the unequal treatment of different types of income that allows people to engage in tax arbitrage—picking and choosing which revenue models will net them the least taxation, which is a real problem for fairness that is not being discussed at all.

https://twitter.com/LindsayTedds/status/1801021913738698941

https://twitter.com/LindsayTedds/status/1801022109172256818

In amidst this comes Calgary economist Jack Mintz, whose sole entire schtick is to cut taxes to solve every problem under the sun. And of course, Pierre Poilievre was quoting him in Question Period, calling him the greatest economy in the country, which is pretty risible. It didn’t help that Poilievre made the basic mistake of believing that the tax rate is going up rather than the inclusion rate (the point at which it kicks in on the profit you’ve made), but he has doomsday scenarios to unleash into the world to make his case that this is a Very Bad Thing, when it’s nothing at all like he seemed to believe.

https://twitter.com/LindsayTedds/status/1801086926696415384

https://twitter.com/LindsayTedds/status/1801088499522937017

https://twitter.com/LindsayTedds/status/1801096926227497107

Everyone has handled this whole situation poorly, media included, and this has been al lost opportunity to try and have a proper conversation about these kinds of tax measures and changes.

Ukraine Dispatch:

Russian missile attacks have left much of Kyiv without power and water. Russian missiles also struck an administrative building and an apartment block in Kryvyi Rih in the south, and killed nine and injured 29. The American government says they are aware of credible reports that abducted Ukrainian children are being put up on adoption websites.

https://twitter.com/zelenskyyua/status/1800901662820704467

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Roundup: Open Letters to Tiff Macklem

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BC premier David Eby decided he needed to be extra performative yesterday, and wrote an open letter to Bank of Canada Governor Tiff Macklem, urging him not to raise interest rates next month because of the “human cost” of these interest rate hikes—ignoring of course the counterfactual of the effects of unchecked high inflation and the “human cost” that it has over the short and medium term.

What is pretty galling in all of this is that Eby knows better. He was once a pretty good civil liberties lawyer, and he fully knows that the Bank is independent, and that they have a legal mandate that they need to fulfil when it comes to keeping inflation at two percent, and that their main policy tool is the blunt instrument of interest rates. His “I know the Bank is independent but…” spiel was frankly embarrassing, and should not have merited the attention it got from the media, but here we are.

Speaking of, Power & Politics was not only true to form in giving him a soapbox to make his point, and rather than doing their jobs of pointing to the irresponsibility of this kind of move, particularly at a time when you also have Pierre Poilievre warning that he’s going to fire the Governor (with what power?) and threatening the Bank’s independence. It would be great if CBC could do a single economics story properly and not just treat it like an issue to be both-sidesed, but they apparently have zero willingness to do so, and the fact that this Eby interview was that ignorant is a sign that they cannot be bothered to care about economics stories for anything than just trying to plug them into their established narratives, and it’s doing the country an extreme disservice.

Programming Note: I’m taking the full long weekend off, so I’ll see you early next week.

Ukraine Dispatch:

Ukrainian forces have reported some success in the south and east, but I am also tickled by their latest video offering, telling all of those armchair generals to basically shut up because they’ve been doing the heavy lifting on their own. President Volodymyr Zelenskyy says that Ukraine has developed its own long-range weapons that can strike 700 kilometres away, which may have been a sly nod to the attack on Russian airbases that destroyed a number of fighters. The mayor of Kyiv wants to build more fortifications, because there always remains the threat from Russia.

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