Wednesday, September 13, 2017

Slouching Toward A City Near You

And what rough beast, its hour come round at last,
Slouches towards Bethlehem to be born?

- W.B. Yeats, The Second Coming



The man pictured above is Nick Shcherban, a Toronto resident who was arrested, hauled off to jail and is now awaiting a bail hearing for reasons I will explain later in this post. For now, it might be useful to think of him as a David who has just lost his battle with Goliath. Kind of like the battle we all seem to have lost to the forces of neoliberalism.

A curious term, neoliberalism, one that sounds innocent enough and is fondly embraced by politicians of all stripes, including the much-photographed Justin Trudeau. But what does it really mean?

Probably the best definition I have read is one offered by Naomi Klein in her latest book, No Is Not Enough:
Neoliberalism is shorthand for an economic project that vilifies the public sphere and anything that's not either the workings of the market or the decisions of individual consumers. ... governments exist in order to create the optimal conditions for private interests to maximize their profits and wealth, based on the theory that the profits and economic growth that follow will benefit everyone in the trickle down from the top - eventually.

The primary tools of this project are all too familiar: privatization of the public sphere, deregulation of the corporate sphere, and low taxes paid for by cuts to public services, and all of this locked in under corporate friendly trade deals. [Think, for example, of Investor-State Dispute Settlement provisions in NAFTA and CETA.]
For anyone paying attention, there can be little doubt that the forces of neoliberalism are in the driver's seat, despite growing recognition of how destructive it is to the common good.

The latest example is to be found in Amazon's search for a second headquarters. In my mind, it represents the ultimate expression of neoliberalism, one in which a very powerful and extremely profitable corporate entity is demanding massive subsidization by the taxpayer in exchange for bestowing jobs. All of this from a company that has already received well over $1 billion in the form of subsidies and tax breaks.

Consider some of the telling elements of its Request For Proposals, one that leaves little doubt that the more taxpayer-funded 'freebies' a jurisdiction offers Amazon, the more kindly disposed it will be to locating there.

Please read the following carefully for both the explicit and the implied expectations of the jurisdiction that 'wins' their approval.
Incentives – Identify incentive programs available for the Project at the state/province and local levels. Outline the type of incentive (i.e. land, site preparation, tax credits/exemptions, relocation grants, workforce grants, utility incentives/grants, permitting, and fee reductions) and the amount.The initial cost and ongoing cost of doing business are critical decision drivers.[Italics mine]

Please provide a summary of total incentives offered for the Project by the state/province and local community. In this summary, please provide a brief description of the incentive item, the timing of incentive payment/realization, and a calculation of the incentive amount. Please describe any specific or unique eligibility requirements mandated by each incentive item. With respect to tax credits, please indicate whether credits are refundable, transferable, or may be carried forward for a specific period of time. If the incentive includes free or reduced land costs, include the mechanism and approvals that will be required. Please also include all timelines associated with the approvals of each incentive. We acknowledge a Project of this magnitude may require special incentive legislation in order for the state/province to achieve a competitive incentive proposal. [Italics mine] As such, please indicate if any incentives or programs will require legislation or other approval methods. Ideally, your submittal includes a total value of incentives, including the specified benefit time period.
I think we can see where this may be going. It is hard not to imagine a day in the very near future when mega corporations will demand to be relieved of all taxation in exchange for the jobs they provide. A kind of corporate, neoliberal extortion disguised as munifescence, no?

So where does Nick Shcherban fit into this picture? Well, Nick was taught a lesson on Monday about who really rules the world, and that includes the 'world-class' city of Toronto. Tired of the almost non-stop use of a neighbouring house for filming purposes, he decided to take some action:
Two speakers and an amplifier was [sic] set up in his backyard where a radio was blasting in the direction of 450 Pape Ave. during the production of the HBO movie Fahrenheit 451, starring Michael B. Jordan and Scarborough-born YouTube star Lilly Singh.

Shcherban said in an interview earlier on Monday that 450 Pape is exclusively and constantly used for filming movies, commercials, and having photo shoots, causing disruptions like excessive noise and blocking access to a TTC bus stop.
His act of resistance did not go unnoticed:
When Shcherban concluded his interview with the Star, a police officer approached him to discuss a noise complaint against him. Shcherban told the officer that they would need a warrant to do anything about it, and within 30 minutes, three [italics mine] detectives appeared at his door, warrant in hand.

It took more than 15 minutes for Shcherban to respond to the detectives after receiving multiple warnings that his door would be broken down if necessary.

He was escorted out of his home and into a police car, as the film crew watched the dramatic scene.
Perhaps most indicative of the mindset that corporate behemoths like HBO deserve unqualified obeisance, a film crew member had this to say about
Shcherban's arrest:
“Serves him right ... We’ve put billions into the Toronto film industry in the last decade.”
Some may say that Nick Sahcherban is getting exactly what he deserves. After all, who is he to try to interfere in something that is providing much-needed jobs and other economic boosts, just because his personal peace is compromised? And, I guess, that is exactly my point in this post. We have become so used to accepting orts from the corporate table that we have reached the point where the public's well-being is only a secondary consideration, if, indeed, it is considered at all, in the greater scheme of things.

Not nearly good enough, in my book.

Tuesday, September 12, 2017

This Is Peerless!

The neoliberal agenda is in for a real takedown by Owen Jones here:

Monday, September 11, 2017

On Systemic Police Racism

I have avoided writing on incidents of police brutality and racism for some time now, not because they are on the decline (check out some of their recent antics, and you will find that, for example, Toronto and area abounds with them) but, quite frankly, because I find it so dispiriting to deal with such egregious abuses of power and authority. I realize that is hardly a reasonable or viable excuse, especially given the kind of suffering the victims themselves experience at the hands of those police who I hesitate to describe as rogue, since they seem to represent an ethos permeating many police departments.

In any event, the following video is most instructive. The fact that it takes place in the U.S. should provide none of us with any comfort, as it just as easily could be depicting a roadside stop here. The language may offend some, but it is indeed a powerful indictment of a systemic problem.




Closer to home, in a Toronto housing project, the infamous Neptune Four police crime unfolded:



Two separate countries. The same mindset. In my view, there is little doubt that systemic police racism is no respecter of national boundaries.

Well, Well, Well

Quelle surprise.



H/t Tomthunkit

Saturday, September 9, 2017

Bill Morneau's Tax Reforms



I have been following with interest the current discussion, sometimes waxing into hysteria, over Finance Minister Bill Morneau's plan to close small-business loopholes that allow such 'mom and pop' operators as lawyers, doctors and dentists to evade paying their full share by "sprinkling income" to family members who do not actually work for these incorporated entities.

If this is just one of many reforms being planned, it is a good start. If it is to be the only reform, it is a paltry effort, as it will yield only $250 million annually, and perhaps only intended as a form of 'bread and circuses' for the masses.

While the usual suspects are calling it a tax grab and predicting dire consequences, I am happy to report that many others see it as simple justice and have a more mature view of taxation in general.

The following two letters from The Toronto Star illustrate views that are anything but reflexive denunciations.
Re: Morneau not swayed by tax-plan backlash, Sept. 6

I am writing in regard to the well-funded backlash against amendments to our tax laws that will finally close a fraction of the loopholes that unduly benefit Canada’s wealthiest citizens.

I am a middle-aged, median-income wage earner who pays his full tax bill every second Thursday. I come from a family of business people and I possess no particular bias against productive entrepreneurs or the genuine spirit of entrepreneurship.

In my experience, business owners are primarily motivated by a desire to be their own boss. As proud and independent operators, they would be the last people to come looking for a crutch from government. But that is exactly what successive Liberal and Conservative governments have provided.

Our tax system has become the ultimate insider deal, in which the well-connected consistently rewrite the rules to escape the rational and just responsibilities that should be placed upon them by a progressive income-tax system in a democratic nation.

It is beyond any doubt that we have a two-tier income-tax system, in which wage and salary earners are routinely expected to pay their full share. Meanwhile, far too many entrepreneurs play by a set of rules concocted for their own benefit, with the exclusive goal of shifting the tax burden to others who can afford it less.

The Liberal Party ran on a platform of respecting the middle class and I cannot imagine a better opportunity to demonstrate your commitment to that platform than by tackling the egregious and entirely undemocratic imbalance in our tax system.

I am not underestimating the amount of guts it will take to tackle the monstrously dysfunctional and distorted tax laws of this country but a refusal by the Liberals to do so will leave the door open for others to champion the cause.

We need a tax system that puts the needs of the country ahead of the needs of the country club. Will you actually take on that challenge?

If middle-class Canadians had the same attitude toward paying taxes that the people at the top did, our country would be just another bankrupt, basket-case banana republic.

Democracy is not free, nor is it particularly cheap. Please share that information with those who are panicking at the prospect of finally paying their fair share.

Mike Vorobej, Ottawa


Canada has finally got economics right. I am seeing more and more Mercedes, BMWs, Lexus, Audis, Range Rovers, Maseratis and Teslas, along with the increasingly frequent Bentleys, Ferraris and Lamborghinis. According to BMO, luxury car sales have increased 37 per cent since 2013.

Just think, years ago, all that money would have been redistributed — wasted! — through a progressive tax system to provide resources for kids with disabilities in school, to reduce health-care wait times, to fight poverty, to support the elderly and so on.

If this is what a free society looks like, then our fiscal policies are right on track. Tax cuts since 2006 redirect $43 billion per year from social programs to individuals, and the top 20 per cent of income earners take 36 per cent of that.

Canada has been lowering the corporate tax rate for years, arguing it stimulates growth. Meanwhile, corporate divestment increases as taxes get lower.

The upside is that those billions of dollars go to wealthy shareholders who pay a fraction of the tax rate on that income than those who actually work for a living.

Which brings us back to the increased number of luxury cars on the road. Well, that and borrowing against home equity, but let’s not burst that bubble.

Mark Davidson, Toronto

Friday, September 8, 2017

Simply Shameful

The other day I noted the difference between Canadian and American coverage of natural disasters. Canadian news does not shy away from references to, and analyses of, climate change, while American news, doubtlessly due to corporate decree, treats it as a theoretical/ideological/political construct not to be mentioned. Apparently, not running afoul of the powers-that-be and influential network sponsors takes precedence over the truth.

If you go to the three-minute mark of the following NBC Nightly News report, Al Roker gives Lester Holt his morally bankrupt version of the meteorological facts of life.