Roundup: Terrible capital gains narratives

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.

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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.

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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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QP: Trying to be clever about the list of names

The prime minister was on his way back from Normandy, while his deputy was off making announcements in Toronto, and all of the other leaders were also absent. Andrew Scheer led off with the NSICOP report, worried about Jennifer O’Connell’s outburst at committee, and demanded the names be released. Dominic LeBlanc suggested that his leader get classified briefings. Scheer asked if any implicated parliamentarians are in Cabinet (which is stupid because there is actual vetting of ministers), and LeBlanc gave Scheer credit for trying to do indirectly what he cannot do directly. Scheer tried a second time, and LeBlanc patted himself on the back for the actions the government has taken around foreign interference when the previous government didn’t. Luc Berthold took over in French, and tried to demand the names again, and got the same answer. Berthold then pivoted to a story about a woman who got chased on the streets in Montreal, and blamed this on bail and supervised injection sites. Ya’ara Saks said the safe consumption sites in the province are run by the province.

Alain Therrien led for the Bloc, and he too raised the NSICOP report, taking some swipes at Chrystia Freeland for her non-response yesterday. LeBlanc reiterated that the government his points that they have been taking action on foreign interference. Therrien made another complaint about Freeland, and got the same response. 

Heather McPherson rose for the NDP to worry about CBSA pensions per current labour negotiations. Anita Anand recited that they are committed to negotiation and that it’s a process of give-and-take. Alexandre Boulerice raised the UN’s request to raise taxes on oil companies and the government refusing. Pascale St-Onge said that she too believes Canada needs to do more to reduce emissions, and praised the elimination of subsiding and their climate resilience fund.

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QP: Look at the interest rate decision, not at the NSICOP report!

While Wednesdays are normal the day the prime minister is present and answers everything, he was instead off to France to take part in D-Day commemorations, and while his deputy was not scheduled to be here, she was after all. With Trudeau gone, one of the other leaders didn’t bother to show up. Pierre Poilievre was present, and started off in French, and he wondered about the NSICOP report about which MPs were implicated, and repeated the same in English in the same time period. Dominic LeBlanc said that no government would release security information in public, and said that if the leader opposite got his security clearance, he could read the confidential information for himself rather that casting aspersions on the floor of the House of Commons. Poilievre stuck to English to raise the AG report on SDTC, and demanded the information be turned over to the RCMP. Chrystia Freeland said that it was no surprise that Poilievre didn’t want to talk about the economic thanks to the good news that rates decreased. Poilievre returned to French to worry about daycares in Montreal where people need police escorts, and demanded changes to the Criminal Code. Freeland, however, reiterated her same response in French. Poilievre switched back to English to demand the release of the report that the Parliamentary Budget Officer claimed he was being gagged about. Freeland ignored this entirely in order to praise the Oilers winning their conference as part of a “good week for Canada.” Poilievre read the letter sent to the PBO asking him not to disclose the report in question, and Freeland said that it was Poilievre under a gag order, who couldn’t say anything nice about Canada. (Seriously?! Honest to Hermes, this is ridiculous).

Alain Therrien led for the Bloc, and he demanded action on the NSICOP revelations of MPs as witting accomplices of foreign governments. LeBlanc praised Therrien’s cooperation on the foreign interference file. Therrien reiterated his demand, and Freeland rose to praise the economic good news of the interest rate decision. 

Jagmeet Singh rose for the NDP, and he too demanded action on those revelation, noting that he has requested a classified briefing but railed that the prime minister has done nothing for months. LeBlanc said he was pleased to hear that he had requested the briefing before patting himself on the back for the action on combatting foreign interference so far. Singh repeated his question in French, and Freeland again got up to praise the economic good news.

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QP: The “refusing to rule out” ploy

On a bright and sunny Tuesday in the nation’s capital, both the prime minister and his deputy were present for QP, as were most of the other leaders (some of whom stated they would be here but were not). Pierre Poilievre led off in French, and he worried that the city of Montreal has requested the “legalization of hard drugs” in their communities, and wanted an admission that what happened in BC was a “deadly mistake,” lest the prime minister repeat the same problem. Trudeau reminded him that they are working with BC on modifying their project, and that they are working only with provinces, and no other requests have been made. Poilievre switched to a English to ask if the prime minster supports decriminalisation for using drugs in parks, hospitals or public transit, and Trudeau repeated his answer. Poilievre pointed out that Trudeau refused to answer his question, and suspected it means he wants to impose the same “radical” policy elsewhere. Trudeau said that nobody supports that, but that Poilievre was trying to use tragedies to score political points, and took a jab at Poilievre for willing to suspend Charter rights if he feels it suits him. Poilievre accused the prime minister of secretly planning to impose “legalisation” on Toronto, and Trudeau reminded him that they will only with with provinces, not the municipalities directly. Poilievre said that Trudeau was not ruling out future extensions, which was obviously ridiculous, before he accused the prime minister of killing more people in the meantime. Trudeau said that they only took three days to approve BC’s completed request, and that the opposition was only scoring cheap points.

Yves-François Blanchet led for the Bloc, and accused the government of threatening French, to which Trudeau gave a paean about defending the French language and language minorities around the country, while the Bloc was just picking fights. Blanchet raised comments by an MP about “extremists,” and Trudeau said that they stand for protecting French across the country. 

Peter Julian rose for the NDP in French, and took swipes at Conservatives for not supporting pharmacare legislation, and exhorted the government to support them in passing it (which is dumb, because it’s the government who needs their support as it’s government legislation). Trudeau thanked the NDP for their support, and said that the Conservatives were against it because their anti-choice members opposed contraception. Leah Gazan took the question in English, with more of an emphasis on birth control instead of diabetes, and Trudeau repeated his same response. 

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QP: Scoring more points on opioid victims

The prime minister was in town today but not in QP, though his deputy was. Most of the other leaders were also away, leaving Andrew Scheer to lead off, where he asked for the date at which the prime minister would like make it illegal to smoke crack in a hospital room. Chrystia Freeland said that BC approached the federal government with a pilot project, the government shares their concerns, and they are working then to adapt the programme, but MPs shouldn’t score political points off of this tragedy. Scheer tried a second time, and Freeland gave a paean to working together to solve these problems, and that relayed that she spoke to premier Eby about their cooperation in working on this, while opioid addiction is a tragedy. Scheer then cherry-picked data on BC’s opioid fatalities, and ignored the increasing rates in Alberta and BC. Freeland again said that she has been in touch with the premier on the issue and they are working collaboratively, and not fundraising off of the pain and death of desperate people. Luc Berthold took over in French, and worried about crack use “exploding” in Montreal, and demanded a preemptive no to any similar projects in Montreal. Freeland slowly annunciated that abC has a pilot project and now has concerns that they will be working together to address, and that these tragedies require putting partisanship aside. Bethold tried to implicate the Bloc in any decriminalisation in Quebec, and Freeland repeated this is a tragedy, and said that what is really extremist and radical are white supremacist policies, and wanted Conservatives to denounce them.

Luc Therrien led for the Bloc, and raised a newspaper story about a “rapprochement” between CBC and Radio-Canada and demanded they never be merged. Freeland insisted that they will always support the French broadcaster. Therrien demanded that each half be made fully independent—which would never work because Radio-Canada requires CBC’s infrastructure. Freeland repeated that they will always support French in Canada.

Alexandre Boulerice rose for the NDP, and started shouting about the government’s environmental record, to which Freeland insisted that this government has done more for the environment than any previous government in Canadian history, but they are doing more. Don Davies took credit for the capital gains changes, and wondered why the Liberals are maintaining Conservatives’ “corporate giveaways.” Freeland noted it was great that the NDP supports tax fairness, and that nurses and carpenters should pay the same taxes as CEOs, and noted Conservative silence on this fairness.

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Roundup: Blaming Trudeau for rent hikes

The Conservatives put out a press release yesterday decrying just how much rent has increased across the country. The problem? Landlord-tenant legislation is a provincial issue, and most of the premiers have resisted rent controls or price caps, mostly for ideological reasons. If indeed rent controls stifle new construction, well, removing them hasn’t spurred it either.

If this is about the market, the federal government hasn’t been in the business of building rental housing since the eighties, and I have seen zero indication that Poilievre would want to get back into that particular line of work. Worse, his release falsely calls the CMHC “Trudeau’s own,” which is a gross mischaracterisation of an arm’s-length Crown corporation that the federal government doesn’t dictate operations to. (This is a rhetorical device Poilievre has been employing a lot, which nobody ever calls him out on either, and that’s a problem). In fact, the government’s decision to remove the GST on purpose-built rentals has given more indications that this will spur development more than any other action so far, but of course, those will take time, which Poilievre is also dismissing with his shtick about people not being able to live in photo-ops.

There has also been the line that this goes back to government spending allegedly raising inflation (false), and that that has raised interest rates, which is what is driving up rental prices, but again, that’s not actually Trudeau’s doing given the global issues with inflation and raising rates to tame it. But Poilievre and his minions would prefer to lie about everything in order to make people angry, because that’s the goal. Facts don’t matter, and that’s a problem for everyone.

Ukraine Dispatch:

Recent Russian air strikes have been focused on Ukraine’s military-industrial complex, however the threat to attacks on energy infrastructure remains high. Ukraine is taking credit for destroying a Russian surveillance plane and an airborne command post. Ukraine’s ground forces commander confirms they are now engaged in “active defence,” but doesn’t rule out further counter-offensive operations. Switzerland has agreed to host a global peace summit at the request of president Volodymyr Zelenskyy.

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Roundup: No, you can’t challenge a censure motion in court

Ontario MPP Sarah Jama has written to Doug Ford to ask him to retract his motion in the legislature to censure her and prevent her from speaking until she offers an apology for the comments she made at the start of the Israel-Hamas conflict. In it, Jama says that if Ford doesn’t, she’ll take the matter to the courts. The problem? The courts won’t touch any kind of legislative censure motion because it falls under the issue of parliamentary privilege and the separation of powers.

We have to remember that Parliament and the legislatures are self-governing, as they should be. That’s what keeps them independent of the powers of the King—and yes, the courts to count as the powers of the King, as the King is the fount of justice, and justice is carried out in his name. (That’s also why we have a doctrine by which the King can do no wrong, but rather, can merely act on bad advice, and the minister who offered that is responsible for it). Part of that self-governing power is the legislature’s ability to discipline its members, which is important because you don’t want an external authority able to do that, because it can create a great deal of interference in the workings of your legislature.

This being said, the fact that she was censured at all is a problem, and as I wrote in a column a couple of weeks ago, is part of a broader pattern that his happening that is extremely concerning (and is almost always hypocritically done by parties who claim to be all about free speech, but reveal themselves to only be pro-speech they like). And it should be up to voters to discipline parties that are abusing these powers to punish those they disagree with, but that also means keeping up the pressure on them so that they know that they are going to be punished for it.

Ukraine Dispatch:

Ukraine says that in spite of that Liberian-flagged ship getting hit by a Russian missile, their alternative Black Sea corridor is working. Really! President Volodymyr Zelenskyy is also hoping for a conference next month on a joint weapon production agreement with the US and defence contractors.

https://twitter.com/defenceu/status/1722903820684947654

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Roundup: Poilievre’s facile budget demands

Pierre Poilievre called a Sunday morning press conference, which is a particularly Conservative tactic that tries to set the agenda for the week, in which he made his demands around the upcoming budget. We all know that it’s pretty much set in stone by this point and is on its way to the printers, but that never stops parties from making performative demands right up until the end. To that end, Poilievre had three main demands:

  1. Bring home powerful paycheques with lower taxes, so hard work pays off again.
  2. Bring home lower prices, by ending inflationary carbon tax hikes & deficit spending that drive up inflation & interest rates.
  3. Bring homes people can afford by removing government gatekeepers to free up land and speed up building permits.

First of all, the thing he refuses to acknowledge or understand is that tax cuts fuel inflation. If he’s worried about the increasing cost of living, tax cuts won’t actually do anything meaningful, and are more likely to just add fuel to that fire. (Meanwhile, taxes aren’t going up for anyone except profitable corporations and on luxury goods). When it comes to housing prices, carbon prices are not inflationary (the Bank of Canada has cited that their effect on inflation is negligible), and deficit spending has absolutely nothing to do with either inflation or interest rates. This is a facile narrative that Poilievre keeps insisting, preferring an austerity budget that will only make the vulnerable even more precarious without government supports, but this economic message still resonates for a particular generation. Meanwhile, none of this will affect housing prices, because that is driven by a lack of supply, which is because municipalities refuse to zone for density, and because provincial governments won’t use their powers to force the issue. And that leads us to the third point, which is that the federal government has no ability to “remove gatekeepers” at the provincial or municipal level. They can’t do anything about building permits, and I am dubious that there is enough federal land that is suitable for housing developments in major cities around the country that is underutilized. I may be wrong, but this has been a perennial promise by governments for years and nothing has really moved, which leads me to believe there’s not a lot to be had.

It’s not at all surprising that Poilievre is sticking to facile and wrong budgetary narratives, but it would be great if he could actually be called out on it rather than both-sides at best, which is barely even happening. This is important stuff and we’re just shrugging it off, and focusing on more bullshit polls about people believing the Conservatives are still the better economic managers in spite of decades of proof to the contrary.

Ukraine Dispatch:

Russian forces have believed to have suffered more than 1100 dead in a week of battles near Bakhmut, with another 1500 wounded so badly as to be removed from the fighting. The Institute for the Study of War believes Russia’s planned advance has stalled in Bakhmut, and that the assault will be more difficult to sustain without more significant losses.

https://twitter.com/ukraine_world/status/1634849209840173057

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QP: Uproar over calling out misinformation

The prime minister was in the Bahamas for CARICOM meetings, and his deputy elsewhere, most of the other leaders were again away from the Chamber. Andrew Scheer led off, with a script in front of him, and he demanded the prime minister “take responsibility” for “waste and corruption” that caused inflation, which is utter bunkum. Ahmed Hussen chided the Conservatives for delaying and voting against rental supplements for two million Canadians. Scheer insisted that this was all about the Liberals giving contracts to friends—which is a bit rich considering how much he helped himself to party funds when he was leader. Mark Holland got up and praised their work in lowering poverty and reducing unemployment. Scheer railed about wage subsidies to profitable corporations, and then went on a tirade about Liberal ethics lapses. François-Philippe Champagne accused the Conservatives of talking down the country and gave a non sequitur of praise for an electric vehicle project. Pierre Paul-Hus took over in French and called out the Bloc for voting in favour of Bill C-5 on reducing some mandatory minimum sentences, which is very strange. David Lametti praised their supports for victims. Paul-Hus raised a particular sexual assault case, and repeated his accusations, and this time Lametti said he couldn’t comment on a particular case which could still be appealed, but reiterated that Bill C-5 was about tackling systemic racism in the justice system.

Alain Therrien led for the Bloc, and he once again raised concerns about Liberals raising objections to the amendments to the official languages bill. Ginette Petitpas Taylor praised that the bill will given new powers to the Languages Commissioner. Therrien tried calling out individual Liberals, and this time Pablo Rodriguez said the Bloc were going to vote against it anyway, so what did it matter.

Jagmeet Singh rose for the NDP, and he railed about rising rental prices, which is provincial jurisdiction. Hussen praised their housing measures. Singh repeated the question in French, and this time Randy Boissonnault acknowledged the NDP’s support in the measures they passed.

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QP: The kings of misinformation

The prime minister was absent, somewhat unusually for a Wednesday, jetting off to the Bahamas for a CARICOM meeting to discuss the situation in Haiti. His deputy was also absent though in town, and even Pierre Poilievre was away, spending the day in Calgary. Melissa Lantsman led off with a script in front of her, and she went on a disappointed tirade about the government constantly breaking the law, and raised the Ethics Commissioner’s report on Greg Fergus, and wondered why nobody gets fired. Mark Holland said that Fergus apologised and was trying to promote a Black business in his riding, but realised his error. Lantsman listed other past ethics violations and wondered why nobody got fired. Holland said it was important that everyone show up and do their best, and then praised their economic record and poverty reduction. Lantsman tried a third time, and Holland said that the government is trying to shepherd the country though some of the most difficult economic times since the Second World War. Luc Berthold took over in French and worried about people not meeting their financial needs and blamed the prime minister for it. Pascale St-Onge noted that while times are difficult, they are ensuring supports for people who need it. Berthold tried again, and this time Randy Boissonnault gave the usual talking points about the Conservatives voting against supports for people.

Yves-François Blanchet led for the Bloc, and he blamed the government for underfunding healthcare, and Adam van  Koeverden read a script about the deal the government has imposed on the provinces and what it entails. Blanchet railed that the money was not enough, and this time Pablo Rodriguez enthused about how great the deal was, and how it only bad news for the Bloc.

Jagmeet Singh rose for the Bloc and railed about private clinics that are operating in the country, to which van Koeverden recited by rote the talking points about upholding the public system. Singh repeated the question in French, and van Koeverden read the French version of the same talking points.

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