Roundup: Neglecting a vital institution

Of the things that vex me about our current government, their tacit endorsement of republican sentiment in this country is high on my list. The fact that they have allowed the Conservatives to take up and politicise the monarchist space in the Canadian landscape is shameful, and the fact that they have allowed the position of Canadian Secretary to the Queen to lapse is just one more sign of this particular antipathy. For all that he professes his affection for Her Majesty, Justin Trudeau seems to have a pretty difficult time reflecting that in his government’s particular decisions, and we will pay the price for it. That the work of arranging royal tours and being the link to Buckingham Palace is being left to the bureaucrats in Canadian Heritage is not a good thing. Everything I have heard about the job they do is not only that they are plagued with incompetence when it comes to the actual work of dealing with the Canadian Monarchy, but the tacit acknowledgement of my sources that those very bureaucrats charged with the responsibility are themselves republicans is hugely problematic. That they are the ones offering advice to the government is a very big problem. And that Trudeau appears to be neglecting this very important relationship is worrying. I know that there are monarchist Liberals in the ranks, and I hope very much that they can start to raise a fuss about this, because it’s a very worrying road that we are now on, and this kind of neglect can do lasting damage to our most fundamental institution, which we should all be very concerned about.

Meanwhile, Paul Wells had an exit interview with Governor General David Johnston, and brought up the issue of debating abolishing the monarchy. Johnston, bless him, pointed out that the countries that most satisfy the needs of their people tend to be constitutional monarchies, so we’ve got that going for us.

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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: Unexpected PBO problems

As it turns out, there is another problem with the legislation that turns the Parliamentary Budget Officer into a full-fledged independent officer of parliament rather than his current status as being part of the Library of Parliament – it just so happens that they need to request any information from ministers themselves and not from civil servants. And nobody flagged this issue during study of the bill when it was before Parliament. Oops.

The concern from the PBO is that this could automatically politicise the work, as though that wasn’t already happening. After all, the PBO has become the opposition’s favourite cudgel to bash the government with, and shield by which to hid behind in order to insist that the report comes from the “objective, non-partisan” PBO and therefore is sacrosanct. Not to mention, that the creation of the office has meant that MPs have one more person to fob their homework off onto rather than doing it for themselves. After all, math is hard, and they have better things to do. So will the change have any material effect? Hard to say, given that the bureaucracy has been reluctant to share all of the requested information to date, and a government that is happy with the PBO one day can quickly become a government that is unhappy with him the next, and they could start insisting that all information is cabinet confidence. But they can already do that with information being requested by way of the civil service, so perhaps that’s a moot point. Only time will tell.

Meanwhile, there have been no efforts to rein in the scope of the PBO’s work, which could become a different sort of problem down the road. Ontario’s PBO-equivalent released a report yesterday that seemed to be a little outside of its mandate, leading to indications that perhaps there are problems brewing.

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Roundup: Unveiling the critics

Andrew Scheer unveiled his list of critics – err, “shadow cabinet” yesterday, and all of the attention is on how leadership rivals fared. All eyes were of course on Maxime Bernier, who didn’t get the finance portfolio that he was publicly lobbying for – which was rather impolitic of him to have done so it needs to be said. Instead Bernier got the industry portfolio, which is still a major economic portfolio and one where he will get to rail about corporate welfare to his heart’s content. And the finance role that he so coveted? That went to Pierre Poilievre, which is something that Liberal partisans everywhere were salivating over, seeing as Poilievre is not exactly someone with poise and tact, and will be in the media a lot (though I will note that he’s better than he used to be).

And those other leadership rivals (who are still in the caucus)? Well, Erin O’Toole got Foreign Affairs, Steven Blaney gets veterans affairs, Michael Chong gets infrastructure, and Tony Clement (for his short-lived leadership ambitions) gets public services and procurement. (Lisa Raitt, meanwhile, already got the coveted deputy leader position, you will recall). But Kellie Leitch, Brad Trost and Deepak Obhrai were all left off the list – all while insisting that they’re happy with things, and that there are no hard feelings, etcetera, etcetera.

But all of this makes me wonder once again why so many of these no hope leadership candidates bothered to stay in the race to the bitter end, as if it was going to mean good standing in the party going forward. I’m not seeing a lot of “good standing” coming out of this, despite the way that it’s being parsed as healing divisions in the party, especially as the more extreme voices of Leitch and Trost being kept on the outside. Leitch, and to a certain extent Trost, humiliated themselves by running terrible campaigns that got them lots of attention but little else, and they are further marginalized by being kept away from the front bench going forward. This justifies those campaigns in what way? It’s why I find the whole exercise of the leadership campaign even more mystifying (beyond the fact that the way in which we conduct them is part of what is wrong with the way our system has been bastardized). The return for no hope campaigns is so limited that I’m can’t see the rationale, but maybe that’s just me.

Meanwhile, Paul Wells and Andrew Coyne each parse what the picks mean about the kind of face that Scheer is trying to put on the party, and the ways in which he is trying to make a mark in the post-Harper era.

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Roundup: Those “sexist” tax changes

Pushback on the proposed income tax changes increased in intensity, with the Canadian Medical Association launching broadsides at the policy under the rubric that it’s “sexist” and will drive doctors out of the country, while Conservatives have taken these arguments to social media, Lisa Raitt policing news aggregators and Kellie Leitch penning fundraising letters. Jane Philpott, addressing a CMA conference, assured them that they were operating under misinformation and that the goal of the changes was tax fairness – that those with spouses earning significantly less money or having adult children shouldn’t unfairly benefit from the existing system than those who don’t.

I did try to get some answers as to how this policy was “sexist,” because I’m not entirely convinced that these changes prevent people from using money in the corporation to finance parental leaves, never mind the fact that the previous government made a Very Big Deal about changing the EI system to allow self-employed people to contribute in order to finance maternity leaves – something that received very little uptake. And most of the stories that Raitt pointed to were anecdotal that didn’t point to where these policy changes were a problem – one example was a Facebook post where a dentist insisted that these current policies were what allowed her to keep up with male counterparts, which is an argument that makes no sense at all. They don’t prevent incorporation. They don’t prevent deductions of expenses or reinvestment in the business – it’s about not letting people use income sprinkling or splitting for the sole purposes of reducing their taxes. Not that it’s stopped the narratives that this hurts doctors or struggling small businesses.

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And this is a salient point – in Ontario, the provincial government encouraged this kind of incorporation rather than increase what they’re paying doctors, so you can see why they’re upset that these tools are being taken away from them. Nevertheless, it also largely proves that their arguments are fairly disingenuous, especially when they insist that “it’s not about the money.” But with none of their other arguments actually panning out, it seems to be that’s exactly what it is, and it’s fine if they come out and just say it. But to put on this song and dance about how the changes are “sexist” and that it somehow disproves Trudeau’s feminism, and ignoring the stated purpose of the changes with regards to tax fairness, makes the excuses start to ring fairly hollow.

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Roundup: Butts/Bannon brouhaha

Tongues were set wagging in the Nation’s Capital yesterday when The New Yorker claimed that Justin Trudeau’s principle secretary, Gerald Butts, had struck up a friendship with Donald Trump’s chief strategist Steve Bannon, of Breitbart fame. Apparently, Bannon sees Butts as the left-wing version of himself, or something, and Butts allegedly told him that there’s nothing more populist than a rich guy raising taxes on the wealthy. And while everyone clamoured for some kind of confirmation out of PMO, getting non-denials from official sources, and “it’s just business” from the less official sources, none of the Canadian stories that I read stopped at the part where the New Yorker piece claimed that Trudeau reversed a polling slump by pushing through these tax measures. While I will readily admit that most polling stories give me hives, especially two years out from an election, I can’t for the life of me recall this having happened – Trudeau’s poll numbers have remained stubbornly high, and only really dipped a little when Andrew Scheer won the Conservative leadership, because at that point there was an actual face that people could put to the poll questions (never mind that questions related to which leader one would vote for are illegitimate given our system of government). Trudeau putting forward these tax changes were the first piece of legislation that they tabled, and while it took a while to actually pass (during which time a budget had also been tabled and passed), it had no actual effect on his polling numbers. Where the New Yorker got this particular tidbit is mystifying to me, and why Canadian outlets didn’t call bullshit on this – and subsequently look side-eye at the other claims in the piece – is similarly baffling.

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Of course, the story would not be complete without Thomas Mulcair coming out to theatrically demand that Butts disavow this “friendship” given all of the drama around racism and white nationalism in the States over the past few days. The problem of course is that a) Butts is not an elected official, and b) there are NAFTA talks underway, and it would be really bad form for our government to so blatantly thumb our noses at the Americans in this way. Keeping a working relationship going would seem to be the most prudent course of action – but that never seem to be the course that Mulcair advocates.

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Roundup: Commence the negotiations

We’re still talking NAFTA? Of course, we’re still talking NAFTA, as negotiations actually get underway today, so that’s exciting. If you need any more background (on top of what’s been said for the past several days) here’s a look at why Chrystia Freeland’s list of demands – especially around local procurement and labour mobility – might be a tough sell in the States, while the proposed chapters on gender and Indigenous issues are likely to be seen as simply expressions of the Trudeau government’s values. And while there aren’t any expectations that these negotiations will be easy, given that Trump is an Uncertainty Engine, trade experts are pointing out that Canada has more leverage than we think we do.

Meanwhile, Paul Wells had plenty to say about the past couple of days:

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This particular observation strikes me as so utterly unsurprising. (Seriously, MPs – you can do better):

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And one more, because seriously:

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Roundup: Concern trolling over tax loopholes

There’s been a great deal of concern trolling going on over the past few days when it comes to the planned changes to self-incorporation to close the tax loopholes found therein. Conservative leader Andrew Scheer tweeted out another of his disingenuous messages yesterday, talking about “hiking taxes” on doctors – who are leading the concern trolling charge against this closure of self-incorporation loopholes – which is not surprising, but nevertheless not exactly the truth about what is going on.

Meanwhile, economist Kevin Milligan has been dismantling the concern trolling arguments with aplomb, so I’ll let him take it from here:

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Roundup: Urgent investigations

With more video evidence that purports to show Canadian-made LAVs being used in Saudi Arabia against their minority Shia population, Foreign Affairs minister Chrystia Freeland has ordered an “urgent investigation” of the claims. At the same time, we’re getting some pretty usual reaction from the various opposition parties and their supporters, that portray the Liberals as being wide-eyed naïfs who had no idea that these vehicles could ever be used for such purposes.

While it’s easy for the woke supporters of opposition parties, who vociferously quote-tweeted the above statements (without assigning such labels to Loreto herself) to try and paint the Liberals as cynics on the issue, this ignores the very real fact that every party in the election was gung-ho about living up to this contract with the Saudis, and insisting that it would go ahead no matter what, because they wanted those jobs – particularly at the General Dynamics plant in London, ON. The fact that the opposition parties, while doing their jobs of holding government to account, are nevertheless speaking out of both sides of their mouths on this issue. It’s also easy to give facile talking points about how terrible Saudi Arabia’s human rights record is without going into the genuine strategic reasons why they’re an ally in the region, and why that complicates and adds a truckload of nuance into the relationship. And as we’ve discussed before, there is no “nice countries only” option when it comes to having an arms industry, and if you think that we can preserve those jobs without getting our hands dirty in the process, well, real life doesn’t work like that. There are trade-offs to be made, and we should be trying to have an honest discussion about it and what those trade-offs are. This chirping, like from our woke tweeter, is not an adult conversation, and does nothing to reflect the reality of the situation in any way.

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Roundup: Suspicions about political donations

The Star has a story that shows how a recently appointed judge made donations to the Liberal Party in the past couple of years – $1800 worth over the two fiscal years, in part by attending a fundraising dinner. And after it lays out all of his donations, the story leaves us with this: “It is not unusual for judicial appointees to have made political donations, nor does it break any rules.” Which makes me wonder why they’re making a) an issue out of it, and b) framing the story in such a way that it gives the impression that he bought his appointment, because that’s exactly what the headline screams. Emmett Macfarlane sees an issue, but I’m having a hard time buying it.

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Part of my issue is the fact that we’re already at a crisis point in this country when it comes to grassroots democratic engagement, and this current media demonization of any political fundraising hurts that. The more we demand that anyone who has made donations be excluded from jobs, the worse we make the political ecosystem as a whole. Sure, once they’ve been appointed they shouldn’t make further donations – that’s fair. But the fact that he didn’t even make the maximum allowable donation over those two years, and the fact that the amount he’s donated is a couple of billable hours for him, is hardly worth getting exercised over. This isn’t America – we don’t have big money buying candidates here, nor do we have the spectre of elected judges that are entirely interested in getting re-elected. And, might I remind you, the previous government appointed Vic Toews and most of Peter MacKay’s wedding party to the bench, which seems far bigger of an ethical breach. The current government has reformed the judicial advisory committees to broaden the scope of who they’re considering, and considering how slowly the process is going, it’s not believable that they’re simply going through the party donor rolls to find a match. And while Macfarlane insists that it’s not about the dollar amount, but the perception of bias, I am very bothered by the way in which stories like this are framed adds to that perception. It’s driving the perception, not the other way around, and that is a problem when it comes to trying to fix the actual things that are breaking down about our democracy.

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