Tag Archives: Energy East

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.

https://twitter.com/lindsaytedds/status/900542218041044992

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).

https://twitter.com/kevinmilligan/status/900512815521202176

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.

https://twitter.com/lindsaytedds/status/900517401334136832

https://twitter.com/brodiehoulette/status/900536709561143296

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.

https://twitter.com/EmmMacfarlane/status/900526526122381312

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: Rejected amendments on C-4

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It looks like we may have another bit of drama between the Commons and the Senate with respect to the amendments on Bill C-4, which is the government’s repeal of two private members’ bills from the previous parliament that sought to limit unionisation. While the portions of the bill related to the repeal of the one bill on financial reporting for unions went through, there were amendments to retain the portions of the former bill on ensuring that union drives are subject to a secret ballot instead of the card-check system. The government has signalled that they plan to reject those amendments, which was not unexpected.

The insistence on secret ballots for unionization was a very fraught issue, and having covered the private members’ bills in the previous parliament, I spoke to a number of labour relations experts who said that not only did this was a problematic change because it put the system out of step with much of the legislation around it, but the process for making those changes – a private members’ bill – upset a lot of the balance in the system and because it had the Conservative government’s support, it shifted the role of the government from promoting settlements and giving parties mediators or arbitrators to one of being openly against the unions. None of that goes away with the Senate’s amendment process. This isn’t by any means to say that I’m trying to shill for the unionization side of things – I’m not. But this is one of those issues where process does matter, and the previous parliament upset the usual process by which these issues are agreed to.

And if the Commons rejects the amendments and sends it back to the Senate? Will they accept the judgment of the Commons? Likely. While the Conservatives in the Senate will likely try to fight this tooth and nail – seeing it as a legacy of their time in government – I’m sure there will be some pressure (and no small amount of admonition from Senator Peter Harder) to bend to the will of the elected members. If the Senate didn’t go to war with the Commons over the assisted dying bill, I have a hard time seeing why they would over this one, particularly as there is a good chance it would not survive a Charter challenge.

ETA: I confused C-4 and C-6 with regards to the call for a free vote. Those sections have been excised.

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QP: Demands to denounce Trump

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A less somber day in the Commons, and things were getting back to normal. Such as normal is in this place. Rona Ambrose led off, declaring that Justin Trudeau broke the Conflict of Interest Code with his vacation with the Aga Khan, and Trudeau reminded her that all questions from the Ethics Commissioner would be answered. Ambrose said that this was a distraction from him doing his job to create jobs, and Trudeau disputed this, stating that he was focused on the middle class and recited actions taken such as tax cuts. Ambrose worried about the possibility of taxing dental and health benefits, but Trudeau repeated his question. Ambrose reiterated the question on benefit plans, and Trudeau merely told her to wait for the upcoming budget. Switching to French, Ambrose then asked about changes coming to the US plunging Canada into a recession. Trudeau noted the beneficial trade relationship that we have with the States, at they would be reiterating this. Thomas Mulcair was up next, demanding that Trudeau stand up to Trump’s racism and hatred. Trudeau noted this twin challenges of ensuring Canadian jobs, and standing up for Canadian values. Mulcair wanted an unequivocal yes or no in French, but Trudeau wouldn’t give him one. Mulcair then switched to the issue of electoral reform and whether the promise was dead, but Trudeau said that they would keep working on it. Mulcair asked again in English, and Trudeau reiterated his happy talking points about working with Canadians to improve our democracy.

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QP: Not just the rules, but listening to Canadians

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With just a couple of QP session left in the year, all of the leaders were present today, interim or otherwise. Rona Ambrose led off, worrying that the prime minster was bragging about being the target of illegal lobbying — which was not what he said, but whatever. Trudeau said that wherever he is, he talks about growth for the middle class and all of those wonderful things. Ambrose wondered when money became more than ethics. Trudeau insisted that he has the same message everywhere he goes, about taxing the one percent more to cut taxes for the middle class. Ambrose asked the same again, got the same answer, and then she worried that his true priority was fundraisers and that he’s left the impression that he can be bought. Trudeau reiterated that they raised taxes on the wealthiest to cut taxes for the middle class. Ambrose accused the Trudeau Foundation of laundering influence to the PM, and demanded that he tell them to stop accepting foreign donations. Trudeau assured her that he severed his connections shortly after he became party leader and they advance the cause of the humanities in a non-partisan manner. Thomas Mulcair was up next, also concern trolling about fundraising, and Trudeau repeated his same points about their priorities. Mulcair demanded support for the NDP bill to “give teeth” to ethics rules, but Trudeau repeated his same points. Mulcair moved onto marijuana legalisation and demanded immediate decriminalisation. Trudeau reminded him that their objectives were to keep it out of the hands of children and the profits from the hands of organised crime, and that until the law was changed, it stands. Mulcair pivoted again to the situation of Stelco workers, and Trudeau said that they were engaged in the challenge.

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QP: Carbon tax woes

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While Rona Ambrose was still away, we had both the PM and NDP “interim” leader Thomas Mulcair present for the day. Denis Lebel led off, decrying federal interference with the provinces with the imposition of their carbon tax. Trudeau insisted that they were working with the provinces to move ahead with tackling emissions. Lebel switched to English to ask again, and got much the same answer, with Trudeau making a few more digs about the previous government not being willing to work with provinces. Lebel went another round in French before Ed Fast took over to ask the same question yet again in English, concern trolling about the three provincial environment ministers who walked out of the meeting with federal ministers. Trudeau largely repeated his points about working with the provinces to create a strong economy and a clean environment. Fast read out condemnation from those ministers, and Trudeau ensured him that their plan would create jobs. Thomas Mulcair was up next, decrying the endorsement of “Stephen Harper’s targets,” and lamented the too-low carbon price. Trudeau replied with his established points about showing leadership in creating jobs and protecting the environment. Mulcair asked again in French, got the same answer, and then moved onto concerns about the Canadian Nuclear Safety Commission in the wake of the Environment Commissioner’s report, to which Trudeau said they would follow up on the recommendations. For his final question, Mulcair demanded that the government agree to the NDP motion on a committee on arms sales, but Trudeau did not agree, and pointed to their adopting the small arms treaty.

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QP: Taking the provinces’ phone calls

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While Justin Trudeau was not only present, having already participated in the debate of the day (a rarity for any PM these days), his leaders opposite were not. Rona Ambrose was off to the UK Conservative caucus in Birmingham, while Thomas Mulcair was elsewhere. Denis Lebel led off for the Conservatives, demanding a signed softwood lumber agreement before it was too late. Trudeau responded by reminding him that the previous government neglected the file while his government has been hard at work in negotiations. Lebel moved onto the healthcare transfers file, demanding the government respect provincial jurisdiction, but Trudeau shook it off, ensuring that they were working together. Lebel insisted that there was peace with the provinces when the Conservatives were in charge and why wouldn’t the federal government just let them be rather than meddle? Trudeau insisted that the provinces were much happier now that the federal government answered their phone calls. Ed Fast got up next to decry the “carbon tax grab” being shoved “down the throats” of Canadians. Trudeau hit back that the previous government ignored the file and made no progress, while his government was. Fast tried again, decrying it as an intrusion on provincial jurisdiction, but Trudeau reminded him that they were indeed respecting said jurisdiction. Robert Aubin led off for the NDP, lamenting the “Harper targets” for GHGs, and Trudeau noted that they had just tabled their plan, and soon all Canadians — not just 80 percent — would be in a carbon priced jurisdiction. Aubin went again another round, got the same answer, and Linda Duncan took over in English, decrying that the announced starting carbon price was too low to be effective. Trudeau noted they were simultaneously developing a strong economy while being environmentally sustainable. Duncan worried the government was abandoning the clean energy future, but Trudeau reiterated his answer a little more forcefully.

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Roundup: Sound the independent thought alarm

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Every time I read these headlines, I sigh and shake my head a little, because here we go again. “Indigenous Liberal MP breaks ranks with government on BC’s Site C Dam” it reads. The MP is Robert-Falcon Ouellette, and by “breaking ranks,” he has questions for the Minister of Fisheries and Oceans – who grants approvals for these kinds of things – and he plans to ask him in caucus next week. Oooh, someone had better sound the independent thought alarm!

It seems that most of my fellow journalists have forgotten that it’s the job of backbenchers – even those of the governing party – to hold the government (meaning cabinet) to account. They’re supposed to ask questions and to not just give them a pass. Ouellette is doing his job. But by sensationalizing it (which this headline clearly does), and portraying it as “breaking ranks” (which he’s not – there have been no votes that he’s gone off-side with) is both demeaning to his job, and it reinforces the notion that MPs are supposed to be drones parroting the lines of their leaders, which is absurd. Not only that, but We The Media nevertheless insist that MPs are supposed to do their jobs and represent their constituents and address issues and not just parrot talking points, and yet we call them out the moment that they do just that. Why? Seriously – why are we doing this? We’re actively being destructive to our democratic system when we pull this kind of nonsense. There are far better and more effective ways that this story could have been framed that don’t privilege party discipline (which again, not actually being broken here) and this notion that MPs must be in lockstep. It shouldn’t be that difficult to do. And yet here we are.

Honestly, we need to do better if we expect better democratic outcomes in this country. We are part of the problem, and we should stop being just that.

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Roundup: Leitch the desperate, hollow shell

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Apparently we’re still talking about Kellie Leitch and her “anti-Canadian values” screening, because why not? The Canadian Press kicked off the day by putting Leitch’s assertion that it would be akin to “asking some simple questions” to their Baloney Metre™, and lo and behold, the experts they spoke to pretty much laughed it out of the room, earning Leitch’s supposition a rare “full of baloney” rating. It seems that “a few simple questions” just teaches people how to lie to give the “right” answers, and that proper interviews with people trained to know whether people are lying is so prohibitively expensive that it’s never going to happen. So there’s that. Much later in the day, Jason Kenney decided to weigh in from Alberta, and pretty much eviscerated Leitch by saying that this position is a new one for her that she never articulated before in cabinet or caucus, and that she doesn’t understand the nuance around the issue. But then again, we’ve pretty much established that Leitch lacks any real semblance of emotional quotient or self-awareness, so her inability to grasp nuance should not be a surprise to anyone.

Meanwhile, Peter Loewen reminds us that we’re not as perfectly tolerant as we like to believe, and he has the data to prove it, which is why Leitch’s message will find a home in places. Scott Reid looks over the record of Leitch’s campaign manager, who helped Rob Ford get elected, and notes that by this point, Leitch is less of a candidate than a strategy in human form (which is kind of what Jason Kenney is hinting at when noting that this position is all new for Leitch). Paul Wells notes the low ceiling for the kind of rhetoric that Leitch is now taking on, and while he sees the strategic value in such a position, he also offers some ideas for better choices than Leitch. Tabatha Southey offers her particular acid take on the Leitch situation, and her insistence on digging so much that she is in danger of becoming a mole person. And of course, there’s the At Issue panel looking at Leitch as well.

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Roundup: O’Toole a possibility

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I’ve generally shied away from talking about these stories about perceived support for leadership candidates, particularly in the Conservative pool, but this one about the potential for Erin O’Toole stuck in my mind after I read it. I will fully admit that my initial reaction was “Erin O’Toole? Really? Why?” But it wouldn’t let go, and I thought about it more, and about O’Toole’s particular political trajectory. To a certain extent, he’s always been one who has been seen as a kind of saviour figure for the party – elected in a by-election to replace Bev Oda after she resigned in disgrace, O’Toole entered as someone who was going to start setting a new tone for the seat and the party. His credentials as a veteran and a lawyer were seen as impeccable and the kind of MP that the party not only wanted but needed as it had taken on the label of being a nasty party, and here was someone who was affable and a nice guy, and was a breath of fresh air for so many. When he made it into cabinet after some time as a parliamentary secretary, it was again in the role of someone who was there to fix things, this time taking over the Veterans Affairs portfolio after Julian Fantino had managed to earn the enmity of pretty much the entire veteran community across the country. (Then again, being a duotronic android will probably do that when you’re in a job that requires a great deal of empathy). O’Toole came in and immediately started to turn things around – well, as much as is possible in a department with a sclerotic culture (and I’ve heard things from some of the Liberals currently on that file about the way that the department runs and it’s a bit shocking).

So with this in mind, it’s actually not surprising that O’Toole would be considered a fairly reasonable choice for the Conservative leadership. He has some cred and some experience (but not so much that he’s carrying the legacy of the whole of the Harper years on his back), and his French is reputedly decent (but not bilingual, though he has some time yet to get it up there). And he’s avoided some of the missteps that dog certain other leadership candidates like Kellie Leitch, and his story is probably more compelling as a narrative than some of the others, nor is he a more marginal figure (like Michael Chong, who put himself on his party’s fringe by being reasonable more often than not). So it’s possible. We’ll have to see if he does throw his hat in the ring, and whether someone like Peter MacKay does throw his hat into the ring (though it’s starting to feel less likely the longer he waits, not to mention that I have a hard time understanding why he would be the frontrunner considering his own history). But if this is going to be a race without any big stars, then O’Toole may have a surprising resilience.

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Roundup: Revisionist history mythologizing

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The electoral reform committee was back yesterday and the “star” witness was former NDP leader Ed Broadbent, currently heading the institute that bears his name. If you’ve been out of the loop, Broadbent is an unabashed supporter of Proportional Representation, and figures that Mixed-Member Proportional is the cat’s pyjamas, and proceeded to regale the committee with any number of ludicrous statements about both the current system and the purported wonders of MMP, and then delivered this particular gem: that MMP would have spared the west the National Energy Programme in the 1980s.

I. Can’t. Even.

https://twitter.com/emmmacfarlane/status/770351319471325185

The amount of mythologizing around the NEP in this country borders on psychosis. There was a time not so long ago that people also caterwauled that a Triple-E senate would also have prevented the NEP, with no actual proof that would be the case if you actually stopped to think about what would be involved in creating such an institution (particularly the imposition of party discipline because if you think you would be electing 105 independent senators, you’re even more delusional than the premise of the question belies). Most of these mythologies around the NEP forget that there was a history involved with global energy crises, broad support in the rest of the country, and that it was a global recession that happened around the same time that was largely responsible for the economic collapse that ensued as opposed to the NEP itself, but the two became conflated in the minds of most people. It didn’t happen in a vacuum or because Pierre Elliot Trudeau simply rubbed his hands and tried to come up with a diabolical plan to screw the West. For Broadbent to suddenly claim that a PR system would have ensured more regional voices at the table and common sense would have prevailed is simply revisionist history combined with the kind of unicorn logic that his preferred voting system would have been responsible only for the good things in history and never the bad. It’s egregious bullshit and needs to be called out as such.

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