Wednesday, April 13, 2016

Seeing Is Believing

While on the official level there is much todo about the best way to keep the world's temperatures from rising above 2 degrees Celsius, those who follow such things closely make it clear that that is likely a forlorn hope, given the feedback loops that seem to now be in play. And we are reminded almost daily not only of the destructive weather that climate change is bringing about, but also our powerlessness in its face:




So the uproar about real measures to ameliorate the situation, as found, for example, in the Leap Manifesto, seems almost quaint and is clearly indicative of our collective failure to truly contemplate our extinction as a species. In today's Star, Thomas Walkom tries to put that uproar into perspective:
Alberta NDP Premier Rachel Notley has called its centrepiece recommendations naive and ill-informed.

Writing in the Star, former party official Robin Sears has dismissed it as the product of “loony leapers.”

In the media, it is usually described as radical. When delegates at the NDP’s Edmonton convention last weekend voted to debate the manifesto at the riding level, some fretted that the party was about to ride off into a Quixotic dead end.

In fact, the Leap Manifesto, which first surfaced last fall, is neither radical nor uniquely left-wing.
Authored by Naomi Klein and Avi Lewis, the central premise of the manifesto is that carbon emissions can be reduced to zero by 2050. One of the cornerstones of that goal is an end to new gas and oil pipelines, something that naturally is vehemently opposed in Alberta, but not so much in almost all of the rest of the country. Additionally,
[l]ike Ottawa and virtually every provincial government, the manifesto calls for investment in clean energy projects. As Ontario has found with its windmill policy, this isn’t always a politically painless process. But except for the manifesto’s suggestion that, (as in Germany and Denmark) such projects be community-controlled, it is hardly novel.

Like Ottawa and virtually every provincial government, the manifesto calls for investment in clean energy projects. As Ontario has found with its windmill policy, this isn’t always a politically painless process. But except for the manifesto’s suggestion that, (as in Germany and Denmark) such projects be community-controlled, it is hardly novel.

Like the federal NDP (sometimes) and both U.S. Democratic presidential candidates, the manifesto opposes trade deals that limit government’s ability to regulate in the public interest.

Like former Liberal prime minister Paul Martin, the authors favour imposing a financial transaction tax to help pay for all of this.
They also call for a carbon tax (like that levied by British Columbia’s right-of-centre government), higher taxes on the wealthy (like those imposed by the Trudeau Liberals) and higher corporate taxes (as suggested by the federal NDP).

Workers displaced by the move away from the carbon economy would be retrained.
Walkom's point is clear: these are hardly radical or outrageous proposals, but rather ones that ultimately are necessary if we are to have any hope at all of saving ourselves.

Tuesday, April 12, 2016

Where Ignorance And Racism Reign Supreme

Yep, that would be Fox News. Watch the following 'deep' sociological discussion between Bill O'Reilly and Donald Trump as the former discusses why black youth are unemployable. How many stereotypes can you spot?

Start at about the 3:50 mark:

Panama Papers Aftermath



While the revelations thus far about offshore holdings for the purpose of tax avoidance or evasion have provided us with a glimpse into the lives of those well beyond our pay grade, whether or not they have any lasting effect depends largely, not on the reactions of you and me, but rather those of the world's governments. And while public outrage may be high right now, whether those governments will simply ride out that outrage with sanctimonious promises to "go after the tax cheats" and do little, or enact substantive measures to curb this most foul and unpatriotic practice, remains to be seen.

Canada seems to be promising action, with National Revenue Minister Diane Lebouthillier promising substantial resources to go after those who put their own extreme personal wealth above the common good:
With an extra $444 million promised in the March budget, the CRA plans to hire additional staff to target what it dubs “high-risk” taxpayers and corporations. In return, the agency expects to collect an additional $2.6 billion in tax revenues over the next five years.

It also plans to boost its information technology capabilities to better sort the overseas financial transactions to detect tax fraud. The agency already tracks all financial transactions worth more than $10,000 — about a million a month.

Now it plans to focus its attention on all transactions involving individual jurisdictions known to be tax shelters — starting with the Isle of Man, off the west coast of England. Three other jurisdictions will also be targeted this year but agency officials refused to say which ones.
While all of this appears to be a good start, a couple of things puzzle me. It is estimated that between $6 and 7.8 billion is lost to our treasury annually through undeclared offshore holding. Yet, our government is promising only that the initiatives announced will collect an additional $2.6 billion in tax revenues over the next five years. Huh?

Secondly, our government has announced which offshore haven it will be examining first, the Isle of Man:
The first is the Isle of Man, which past transactions involving some KPMG clients have already been flagged by the agency. Quebec Liberal MP François-Philippe Champagne said $860 million in funds were transferred there in the last year along. Sixty audits already underway in relation to investments held in the Isle of Man. The CRA intends to contact another 800 taxpayers and corporations to obtain more information about their holdings.
Now, I know nothing about the arcane world of tax evasion and avoidance, but is it possible that by signaling its intent, the government is also giving the fiscal malefactors an opportunity to move their lucre to other havens not currently under the CRA's scrutiny?

I think these are legitimate questions to ask, given the fact that the CRA has previously treated tax scofflaws with great consideration. A Star editorial provides reasons we should be a bit cynical:
...while agencies such as the CRA and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) are happy to name the small fish they catch breaking the laws and regulations, that hasn’t always been the case with bigger fish.

Just last week FINTRAC, which tracks money laundering and terrorist financing among other things, announced it had levied a stiff $1.1-million penalty on a Canadian bank for failing to report a suspicious transaction and various money transfers. But it declined to name the institution involved. Meanwhile it is busy naming players who have been slapped with fines of $15,000 or less.

And CRA has drawn criticism for quietly offering an amnesty deal to unnamed multi-millionaire clients of the KPMG accounting firm who were allegedly involved in tax avoidance on the Isle of Man. The Canadian Broadcasting Corp. reported that the group was required by CRA only to pay back the taxes they owed, plus interest. Yet the CRA routinely prosecutes and names people who fail to file tax returns or otherwise run afoul of the law.
For more details about how the CRA has one approach for most of us and another for the monied class, click here; you may also want to watch the following video:



To close, I'll leave you with this excerpt from the Star editorial that likely sums up how so many of us feel:
If the government hopes to “give Canadians greater confidence that the tax system is fair to everyone,” its agencies should be prepared to publicly name offenders. Cutting deals to spare Ottawa the trouble of prosecuting, or to preserve the “good name” of financial institutions and their wealthy clients, isn’t going to reassure anyone other than the scofflaws themselves.

Ottawa shouldn’t be in the business of shielding those who have gone to extraordinary lengths to insulate themselves and their assets from public scrutiny.

Sunday, April 10, 2016

Policing: A Contrast In Methodologies

We've all seen the videos depicting the murder of Sammy Yatim at the hands of Toronto police officer James Forcillio. Although Forcillo has been held to partial account for his foul deed, most realize, I think, that things didn't have to end the tragic way they did.



And with new and disturbing allegations of police misconduct being perpetrated against the family of Alex Wettlaufer, the public has every right to be gravely concerned about a constabulary that appears to regard itself as a sovereign power, meting out punishment and death at will with little or no real oversight or control.

But it doesn't have to be that way. The Toronto Star carries a story contrasting the execution of Yatim with the far more measured approach of an Ohio police officer, Joshua Hilling who, despite immediate peril, fires his weapon only once on knife-wielding suspect Javier Aleman and pleads with the suspect to drop his weapon in a protracted encounter that speaks so well of him. Unlike Forcillo, Hillman sought to deescalate the situation in order to save Aleman's life.



You can read a full analysis of the differences between the Yatim and Aleman cases in how the officers handled the situation here. One can only rue the fact that someone like Officer Hilling was not present when Sammy Yatim had his crisis. Had he been, the odds are that the young man would still be very much alive today.

Saturday, April 9, 2016

Are The Toronto Police Re-Victimizing The Family Of Alex Wettlaufer?



I cannot imagine the ongoing pain that the family of Alex Wettlaufer is experiencing. Less than a month ago, 21-year-old Alex was killed by police under suspicious and troubling circumstances, details of which will be withheld from the public for up to a year as the SIU carries out its investigation.

However, the loss of a young family member may not be the only grief the family is currently experiencing. According to an anonymous message I received last night, the police are compounding that pain in ways which, if true, offers us a deeply troubling and frightening insight into a force that may be totally out of control.

It is common knowledge that when the police feel in any way threatened, either by the courts or by individuals, they make their intimidating presence felt. Their past harassment of former Toronto Police Services Board Chair Susan Eng and an array of civic representatives attests to the long and vindictive memory of the Toronto Police. And when their own credibility is on the line in court cases, a wall of blue dominates and intimidates witnesses and lawyers.

I cannot attest to the veracity of what follows, but this anonymous source brings forth allegations so disturbing in nature that they surely merit further investigation.
I have heard so much about this incident from a friend I've known for 20 years, who themselves has known the family for decades, and watched all the kids grow up. Details that DO NOT match up with what is being reported.

Alex was only dropping his girlfriend off at the subway, because he didn't want her walking there at night by herself. Afterwards he took the usual shortcut home along the ravine, as many of the kids from the neighbourhood have for generations. It would seem this was a case of mistaken identity, and Alex died because of this mistake! The family was told he was shot by 3 different officers after the autopsy was complete. And the strangest part... the cellphone he was using to call his family when he was shot was apparently NOT recovered by the police!

And to add to this bullshit, the family home has been raided, not once but twice. Three of Alex's siblings have been arrested and charged for things like mischief and threats because of angry posts on Facebook. The raids were conducted under the pretense of looking for drugs and weapons, but of course nothing was found. The family is scared, as they are being harassed by the police to the point that they are afraid to say anything.

These details should be all over the media, and it pisses me off so much to hear what this poor family is going through because the police made a mistake and are making their life a living hell to save their own asses! Now I can't speak to the veracity of any of these details, as we all know how personal bias can change things that are said as they are shared between people, but something is definitely not right here. The travesty of this incident and the subsequent actions by the police should be all over the news.

This is much worse than the Yatim shooting if the police are truly guilty here. It makes me so sick thinking the police will likely get away with this shooting.
I have urged my anonymous correspondent to take the appropriate measures to ensure that these allegations get a full and very public investigation.

Friday, April 8, 2016

Now This Is The Kind Of Story I Like To Read About



The opportunity to report about something positive in the kind of blog I write is rare. For example, while reports abound of corporate theft and paltry remuneration for the workers that make big profits possible, less common is a story about a business doing the right thing. Well, here is one such story.
All through the night, the workers at Nebraskaland Inc., a meat distributor in the Bronx, roam the alleys of a cavernous warehouse, piling boxes of beef and chicken onto pallets in subzero temperatures. Until last year, many were paid $10 (U.S.) an hour, a little above the minimum mandated by New York State.

Then Richard Romanoff, the company’s owner, saw a news segment about a movement started by fast-food workers to push the minimum wage to $15 an hour. “I’m going to speak straight with you, my managers wanted to get people as cheap as they could,” Mr. Romanoff said. But something about the idea “really clicked,” he said. Last summer, Nebraskaland began gradually increasing the lowest hourly wage at the company, which will hit $15 at the end of this year.
One can rightly ask if we are witnessing a growing momentum in the movement toward raising minimum wages, a movement that captured not only Romanoff's but also national attention a few years ago when marches and strikes began in the fast-food industry to raise wages to $15 per hour. And it seems to be getting results:
In the past week, two of the most populous states in the country – California and New York – enacted legislation to raise the minimum wage to $15 within six years. Major cities, such as Seattle, Los Angeles and San Francisco, have pledged to increase their minimum wage to $15 in steps. In Portland, Ore., the minimum hourly pay will rise to $14.75.
It would seem that some employers are starting to get the message, and they are putting the issue into propoer perspective:
At Nebraskaland in the Bronx, Mr. Romanoff said roughly half of his 250 workers are benefiting from the wage increases, at a yearly cost to his company of about $350,000. “You pretend it’s an increase in rent, or electricity – you deal with it, one way or another,” he said.

Meanwhile, the number of applicants for job openings has quadrupled as news of the pay hikes spread.

Mr. Romanoff acknowledged that for some industries – including some of his customers, like supermarkets – such increases would be a challenge. “I just know for me, why wouldn’t I do it if I can afford it?”
Enlightened business leadership is a term I usually use ironically. I am happy that at least for today, I can speak of it literally.

Thursday, April 7, 2016

What Are They Hiding?



You tell me.
The federal agency that levied a $1.1-million fine against a Canadian bank for failing to report a suspicious transaction had intended the hefty penalty to send a stern message to the financial sector. Instead, it has fuelled an outcry over why the name of the penalized bank has been kept a secret.

On Wednesday, all of the Big Six Canadian banks said they were not fined by Financial Transactions and Reports Analysis Centre of Canada, or FinTRAC, leading to speculation that the offending bank is a smaller entity or the Canadian branch of a foreign institution.

FinTRAC said that the fine, the first of its kind levied against a Canadian bank and paid two weeks ago, was supposed to act as a deterrent against taking a loose approach to reporting standards. Rules have been toughened up in recent years in response to money laundering and terrorism financing activities.

But it is unclear how this deterrent is supposed to work when the offender is granted anonymity and whether an unintended consequence of the fine is that it casts suspicions upon the entire financial sector.
While FinTrac has been happy in the past to name names, its reluctance to identify a big player is perhaps best explained this way:
Michael Baumbach is director of Toronto-based Diamond Exchange Toronto Inc. which was fined $12,750 and named by Fintrac in March. He says the agency is unfairly punishing smaller firms like his jewelry business, which is trying hard to comply, while letting bigger players with deeper pockets off the hook.

He believes the bank’s name was kept secret because it has resources at its disposal to give Fintrac a legal headache. Meanwhile, he feels powerless when trying to get answers about why it fined his company, which now faces bankruptcy over what he says is an unjust fine.

“The banks are not just going to sit back and have their names slipped, but a small company — we can’t do anything,” he said.

“All they’re doing is putting the smaller businesses out of business and the bigger businesses who have the legal clout to contest it, obviously they’re not naming names because of the fact that these companies will do something.”
Yet another reminder that the thing we call justice can too frequently be a fluid and elusive concept, more honoured in the breach than in the observance.