Dare I 'Blaspheme'?

I dare.

Given the hagiography that has unfolded since the passing of Brian Mulroney, I now take a step into waters that his enthusiasts might deem sacrilegious, even blasphemous. Despite his achievements (which largely look good in contrast to those of  today's 'leaders'), the late prime minister, in my view, was a shallow man who lacked insight into his own soul.

You may recall that one of his proudest achievements was that he sang for the Colonel  (Colonel McCormick) when he was nine years old. So impressed was he by this American's investment in Baie Comeau that he developed a fawning, life-long love of all things American, culminating in his onstage  singing of When Irish Eyes Are Smiling with Ronald and Nancy Reagan in the eighties. It was a performance he reprised in 2017 for Donald Trump, another man he greatly admired, at Mar-a-Largo.

The Globe's Lawrence Martin, whether intentionally or not, reveals the true shallowness of the man. Regarding his bond with Trump, he writes

Their relationship, Mr. Mulroney told me in an interview last year, went back decades to when they saw each other a lot in New York. It continued in Palm Beach, Fla., where he had a residence close to Mr. Trump’s Mar-a-Lago estate, which Mr. Mulroney and his family visited frequently.

He and Mr. Trump were such friends that shortly after Mr. Trump’s inauguration in 2017, he sang When Irish Eyes Are Smiling for Mr. Trump at a Mar-a-Lago reception. He’d sung it with Ronald Reagan at the Shamrock Summit in Quebec City in 1985.

In fact, Mr. Mulroney believed Mr. Trump could be a highly successful president, just like the Gipper. 

Mulroney revealed to Martin that he thought Trump would be a good president, swept up in the majesty of office, and didn't see his right-wing populism coming. Those of us with both a pulse and critical thinking skills, I suspect, were not overtaken with the surprise Mulroney undoubtedly felt but never acknowledged when Trump turned out to be manifestly unfit for office.

During the interview, the late PM revealed he didn't blame the forces unleashed by Trump as responsible for America's current ills:

You have to look ... at “the capture of the Democratic Party by the extreme left-wing – The Squad and the unions. Joe Biden has been held hostage by the left wing of the party. And I know Joe well and I like him. But that’s what happened.”

He concurred that the U.S. democracy was in dire condition and the country brutally divided. “I understand all that, but that doesn’t change the reality that this is the greatest nation on Earth...

I submit that those dogmatic assertions would be met with less than universal assent.

For me, however, the greatest indication of Mulroney's lack of personal insight and reflective capacity is what he reveals about his ideas on free trade.

In our interview, Mr. Mulroney wanted to clear up a misconception: the idea that he was a johnny-come-lately to the idea of free trade. “Look, I had been president of the Iron Ore Company for nine years. And hell, the whole concept of the Iron Ore Company was trade. I was all over the world from Romania to China to Taiwan to Brazil, non-stop.”

While it’s true, he said, that in the 1983 Tory leadership campaign he stridently opposed free trade, it was because Canadians weren’t prepared to hear of it then and he couldn’t have won on it. “You have to remember the antipathy toward Reagan was horrific in Canada, disgraceful.”

What kind of man openly and shamelessly, even proudly, admits he lied both to his own party and the Canadian public?

The legacy of Brian Mulroney will, without doubt, be persistently promulgated and promoted in the days leading up to his state funeral. However, we do a grave disservice to critical thinkers everywhere not to challenge the elevation to secular sainthood many of his boosters clearly wish for him.

 

 

Take My Money. Please!

With even Britain's Labour Party avowing no new taxes on the wealthy, it is refreshing when one reads about people of means asking to be taxed more. In the United States, it is the billionaire Warren Buffett who clamours for fair taxation. His Buffett Rule came to prominence when he

publicly stated in early 2011 that he believed it was wrong that rich people, like himself, could pay less in federal taxes, as a portion of income, than the middle class, and voiced support for increased income taxes on the wealthy.

Regrettably, there is little such appetite in Canada, where that kind of talk is met with dire warnings of doom, the myth being that we are overtaxed. No one wants to impose penury on the wealthy, since they already do so much for us, eh? However, one individual is piercing the 'party line'. Claire Trottier writes:

Despite being part of the 1 per cent myself, ... we’re not addressing the underpinning factors that are accelerating the concentration of wealth and power into an ever shrinking percentage of individuals.

The solution is right in front of us: we need to tax me and people like me more and that means taxing wealth. 

She points out that the gap between the very rich and the rest of us is widening.

Canada’s roughly 50 billionaires have seen a 51 per cent increase in their wealth since the beginning of COVID and have more assets than the bottom 40 per cent of Canadian households combined. And it’s getting worse, as hugely disproportionate sums of wealth created in the last 10 years have gone to the top 1 per cent while the bottom 50 per cent have gotten practically nothing.

Given the crises in housing, food prices, general affordability and the climate, Trottier wants to see some changes. 

 I am one of over 250 millionaires who signed an open letter presented at the World Economic Forum at Davos saying that we would be proud to pay more tax in the form of a wealth tax. 

Polls show that a majority of Canadians support the idea of a wealth tax. 

All of society would benefit from a wealth tax. I’m not interested in being a rich person in a poor country. I want to live in a society where everyone can live a dignified life today and where we can mitigate the devastating impacts of climate change in the future.

Unfortunately, as I tried to point out in my previous post, the biggest impediment to fair taxation seems to be our government and the titans it chooses to fawn over and listen to. Until that changes, expect the gap between the rich and the poor, and its attendant policy failures, to continue apace.

 

 

 

UPDATE: A Lack Of Appetite: The Canadian Government, The CRA, And Tax Avoidance

 

While I have written extensively in the past about tax evasion and avoidance in light of the revelations of both the Panama and Paradise Papers, I felt it was time to do an update. To summarize what I wrote previously, there has been a striking reluctance on the part of our government, compared to other jurisdictions, to go after the entitled who have sheltered so much income in offshore accounts.

Consider, for example, France. as reported in La Monde.

Seven years [after the Panama Papers release] and hundreds of audits later, France has already recovered €195.5 million in tax revenue for the state budget... 

Rendered invisible in offshore arrangements, this money corresponds to 219 taxpayer files, both individuals and companies, caught in the net of the Panama Papers. It's the sum of all financial audits completed by December 31, 2022, as well as regularizations made.

This sum

place[s] France in the club of five countries to have recovered more than €100 million in taxes and penalties thanks to the Panama Papers, along with the UK, Germany, Spain and Australia.

Moreover, the cumulative amount recovered is greater:

All told, from the Offshore Leaks (2013) to the Pandora Papers (2021), the sum recovered today stands at over €450 million. However, this figure will remain incomplete until all checks have been completed.

By contrast, it would appear that the pursuit of tax scofflaws by Canada has been far less vigorous. While is is difficult to find any current reports, two Senate of Canada reports do not paint a rosy picture. The first, from 2019 and written by Senator Percy Downe, has this to say:

The Canada Revenue Agency (CRA) is up to its old tricks: misleading Canadians and not upholding its responsibilities to collect taxes owed to our country by those hiding their money overseas. When tax cheats are not caught, charged and convicted, and money owed isn’t collected, we have less money to invest in our priorities while the rest of us pay higher taxes to make up the shortfall.

Why the federal government allows this state of affairs to continue year after year remains a mystery. The government talks tough, “overseas tax evasion is a high priority”, “we will catch you if you cheat” and other reassuring words. Their results, however, speak for themselves: they have none.

Recently, on the third anniversary of the release of the Panama Papers, we learned that other countries have recovered more than $1.2 billion dollars in fines and back taxes. Australia has recouped $92,880,415, Spain is counting $164,104,468 in their coffers, the United Kingdom has recovered $252,762,000, and even tiny Iceland was able to recover $25,525,959. Some 894 Canadians (individuals, corporations and trusts) were revealed to have accounts in the Panama Papers, but Canada’s Revenue Agency hasn’t recovered a dollar.

A second piece by Downe, written two years later, reported no progress. 

In the immortal words of the Parliamentary Budget Officer, "there are hundreds of millions, if not billions, of dollars in taxes that go undeclared, unreported and that escape Canadian tax authorities, probably on an annual basis...”

The Canada Revenue Agency (CRA) has failed when it comes to collecting any of this money hidden overseas. Notwithstanding the CRA’s highly effective domestic tax collection, they have been an utter disaster on overseas tax evasion. Canadians are allowed to have accounts overseas but it is illegal not to declare the proceeds of those accounts.

This inaction costs all of us, considering how the foregone tax revenue would provide a healthy injection into a myriad of much-needed programs in Canada. 

In Canada, there is no risk to hiding your money overseas because your chances of being charged or convicted range from slim to none. The "hundreds of millions, if not billions, of dollars in taxes that go undeclared ... probably on an annual basis” identified by the PBO will not, by itself, solve our financial problems — but it will go a long way to restore prosperity for Canadians.

The failure to collect taxes owed undermines confidence that everyone is being treated equally. If we are all in this together, then we all pay taxes. Otherwise, there is special treatment for some Canadians with the resources to hide their money, while the rest of us must pay more to make up that shortfall.

There is much work to do. Since nothing else has worked, it’s time for solid action rather than empty words from the Government of Canada.

One is naive to believe that the CRA is truly independent of government influence. One may recall, for example, that Stephen Harper siced it on NGOs that were critical of his government, and despite the promising rhetoric at the beginning of Justin Trudeau's tenure, it is clear that certain entities (think corporate and individual titans) are essentially off-limits. 

I have said it several times here, that Mr. Trudeau has never met a powerful entity he doesn't admire. Perhaps he picked it up through his upbringing or his reported forays to Davos to meet with the world's elite. 

One thing is undeniable, however. His bromance is costing the rest of us plenty, both in terms of a loss of faith in the fairness of our tax system, and the underfunding of programs that could benefit all of us, if only we had access to Canadian elites' tax on their concealed wealth.

UPDATE: The G20 wants to impose a minimum global tax on billionaires. Keir Starmer, Britain's Labour leader, promises no new taxes on the wealthy if elected. I suspect Justin Trudeau shares Starmer's aversion to holding the ultra wealthy to account.

 

 

The Language Of Genocide

 

“Political language is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind. ”

― George Orwell

It is very easy, in the majority of cases, to become quickly inured to the world's suffering. Whether it be earthquakes and crime in Haiti, famine in Africa, or the war Russia is waging against Ukraine, we reach the point of compassion fatigue, facilitated no doubt by the lack of any apparent resolution to the dire circumstances so many experience in today's fractured world. 

One hopes against hope that the genocide taking place in Gaza may prove an exception, however, despite the efforts of so many to make the Israeli response to the October 7 attack by Hamas look both reasonable and necessary. And one of the latest to make such an effort is our own (were it not so) Stephen Harper.

Shree Paradkar writes:

On Wednesday, former Canadian prime minister Stephen Harper was in Jerusalem, shaking hands with the butcher of Gaza, Israeli Prime Minister Benjamin Netanyahu. According to his tweet, Harper witnessed "an Israel scarred by the unprovoked horrors of Oct. 7, but also united in its determination to end the threat of Hamas once and for all."

"Unprovoked." "Ending the threat of Hamas." Phrases being repeatedly used to justify the unjustifiable.

It is no doubt a human tendency to try to interpret the world along absolutist terms; things are either good or bad, thereby circumventing the hard work that critical thinking requires. For his fellow travellers, Stephen Harper is providing such a service.

But historical context is needed.

The Hamas commander named the attack "Al Aqsa Floods" saying it was meant to avenge Israel's brutal attacks on Al Aqsa mosque in East Jerusalem — long a flashpoint site — during Ramadan in 2021.

Whatever one makes of that statement, it's a reminder that one can't look at what's happening without context. Insisting on erasing the context of current events — as seen with the repetition of the word "unprovoked" — is very much in Israel's interest. It allows Israel to position itself as the innocent party and to reduce the unspeakable violence it has unleashed to a "they-asked-for-it" rhetoric.

But there is much more involved here, years of abuse and repression that the world refuses to acknowledge.

There is so much mutual pain in the region that to ignore the underlying conditions of violence is to create conditions that lead to violence.

Some of these conditions include decades of repressive and vicious Israeli military occupation in Palestinian territories, with Israel routinely displacing, imprisoning and killing Palestinians. Israel's illegal blockade segregated Gazans from the world for years by banning them from travelling outside. The majority of Gazans are refugees who face sweeping restrictions on the entry and exit of goods. Israel even controlled the flow of electricity and water; more than 90 per cent of the water in Gaza was unfit for consumption before Oct. 7. A Washington Post report found there had been no natural surface water in Gaza since the early 2000s.

For even greater context, there is an array of videos available on YouTube attesting to the mistreatment of Arabs in the entire region.

Paradkar also talks about how the Palestinian cause has been conflated with Hamas and Islamic extremism, making it easier to dehumanize them, meaning

no matter how Israel treats Palestinians, whether it attacks Gaza's hospitals, kills and maims children, doctors, academics and journalists, or whether the International Court of Justice has ruled that Israel must take action to prevent genocidal violence by its armed forces, in Israel's view and in the eyes of its Western allies, it remains the wronged party.

It is this mentality that Harper has shamefully tapped into, making it easier to minimize and justify Israel's ongoing atrocities. 

Decades ago, George Orwell warned us about the destructive effects of political language. Sadly, it seems we have learned little to nothing in the intervening years.

Two Strong Black Women And A Racist Meet At The Bar

Two strong Black women,  Fanni Willis in Georgia and Latitia James in New York, have proven relentless in their pursuit of justice. As proven last week, despite efforts to disqualify her from prosecuting Trump, Willis is defiant, indeed, contemptuous, of the efforts to stop her. 

You can watch her full testimony here.

Similarly, James has every intention of seizing Trump's assets if he doesn't pay the monumental fine imposed in his financial fraud case.

Oh, how it must enrage that well-known racist and misogynist, Trump, and his MAGA cult, to see these indefatigable Black women give him no quarter.

I love it.

Not To Put Too Fine A Point On It

 ..... but

H/t Theo Moudakis

UPDATED: Egregious Incompetence Or Egregious Indifference?

I realize that progressives are largely loathe to criticize the Trudeau government. Given the simplistic, either-or, black-and-white thinking of much of the electorate, such criticism is fraught with peril. For that significant segment of shallow voters, the reasoning seems to be that if the current government is found wanting, the only alternative is to support PP and his Conservatives. Why the NDP is almost never considered as an alternative is a bit beyond me.

Nonetheless, we do no one any service if we ignore or minimize the egregious shortcomings of our current government. Two recent reports highlight what is either federal incompetence or massive indifference. The first pertains to the almost unbelievable cost of $60 million (from an original estimated cost of $80,000) to develop the botched ArriveCan app, which earned a scathing rebuke from Canada's Auditor-General, Karen Hogan.

Overall, Hogan found that the Canada Border Services Agency (CBSA), the Public Health Agency of Canada (PHAC) and Public Services and Procurement Canada "repeatedly failed to follow good management practices in the contracting, development and implementation of the ArriveCan application."

"This is probably the first example that I've seen such a glaring disregard for some of the most basic and fundamental policies and rules," Hogan told the House public accounts committee on Monday.

The Star's Rosie Di Manno had this to say:

It was supposed to cost $80,000. Maybe your tech savant kid could have done it for 80 bucks.

Serial incompetence which caused the Canada Border Services Agency to release 177 versions of the digital software between April 2020 and October 2022 — driving travellers nuts — and at one point falsely informed 10,200 users that they needed to pandemic quarantine for two weeks. While outsourcing companies — from which the contracted firms raked in hefty commissions of 15- to 30-per-cent — actually did no work on the project at all, CBSA officials were wined and dined at various restaurants and breweries (one off-site virtual meeting was dubbed “ArriveCan Whisky Tasting’’), and five of eight federal health bureaucrats racked up $342,929 in bonuses over those two years.

It is almost as if the government had a giant Kick Me sign attached to its metaphorical rear end.

Everything about rolling out the ArriveCan app was reckless and negligent at every stage, crucially in sole-source contracts with GC Strategies, in reality a two-person outfit that hired subcontractors to do the actual IT work, 76 per cent of which did not work at all, according to Hogan’s findings.

“The Canada Border Services Agency’s documentation, financial records and controls were so poor that we were unable to determine the precise cost of the ArriveCan application,’’ wrote Hogan. At a news conference afterwards, she continued to flog just about everyone involved. “Overall, this audit shows a glaring disregard for basic management and contracting practices throughout ArriveCan’s development and implementation.’’ Adding: “This is probably some of the worst financial record keeping that I’ve seen.’’ 

And this taxpayer contempt is not the worst of the government's crimes. No, that distinction has to go to  the feds' inability to rouse themselves from their torpor to fill a growing list of judicial vacancies, vacancies that are having some real-world consequences. In a case filed by a human rights lawyer, Federal Judge Henry Brown issued a rebuke to the Trudeau government:

Brown says Prime Minister Justin Trudeau and Justice Minister Arif Virani failed to do what Wagner asked and are failing Canadians who rely on the justice system.

There were 85 vacancies when Wagner wrote his letter in May, 79 when the case was filed in June and 75 on Feb. 1.

Things have reached a crisis level. Given the Supreme Court ruling that trials must be conducted within 30 months of charges, a number of prominent cases have recently been tossed for violating that stipulation, including ones for human trafficking and sexual assault.  Such transparent injustices can only cause the further erosion of faith in the justice system and, by extension, democracy itself.

This post has attempted to describe what happens when a government grows jaded, tired, and contemptuous of the people it was elected to serve. This happens all the time, but what surprises me is the speed with which the federal Liberals resurrected their arrogance after being in the penalty box for so long.

Clearly, they have done so at their electoral peril.

UPDATE: Theo Moudakis offers this succinct assessment: