Politics Briefing: Tax debate dominates the Hill

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Good morning,

The debate about the Liberal government's tax changes continues. To recap, the changes address three areas for people who own private corporations: It would seek to limit the dispersal of money to family members in order to pay lower taxes; cut down on business owners using their companies to invest money that is not going towards the business; and stop inappropriate instances of income being taxed at low capital-gains rates.

The small business lobby, which is adamantly opposing the changes, has a new survey out that, it says, shows its members are solidly with them. Of course, these kinds of groups are never a monolith – many doctors, who will be affected, say they support the goals of the Liberal proposal. Family farms, whose owners would likely rather worry about the harvest than their corporate structures, are concerned about the new rules too. (If you think you could be affected, our small business reporters have some advice.) All this debate about personal finances has also swung the spotlight over to the two main proponents of the plan – Prime Minister Justin Trudeau and Finance Minister Bill Morneau – whose own family fortunes are stashed away in trusts.

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TODAY'S HEADLINES

Prime Minister Justin Trudeau is in New York again today, among other things campaigning for Canada to get a seat on the United Nations Security Council for the 2021-22 term. He is set to address the General Assembly today, where he will speak about Indigenous people.

Conservative Leader Andrew Scheer, who has repeatedly criticized the governing Liberals for their "cash for access" fundraisers, says he is under no obligation to disclose his own private fundraising dinners because he's not in power. "I'll continue to follow every single law that Elections Canada has on these types of issues," Mr. Scheer told The Globe.

Conservative MP Dianne Watts, a former mayor, will make a run for the BC Liberal leadership recently vacated by Christy Clark.

Jason Kenney, candidate for the leadership of the United Conservatives in Alberta, says his province could use the precedence of Quebec secession to negotiate with the government about energy rules.

The leaders of the national inquiry into missing and murdered Indigenous women say their program has been severely hampered by federal bureaucracy, but that they are getting on track. "This has been a difficult year and for many people, our progress has been too slow. But we wanted to do this right because we know there are risks associated with doing this work quickly and superficially," chief commissioner Marion Buller told a Senate committee last night.

As the Boeing-Bombardier trade spat continues, Lockheed Martin – which manufactures the F-35 jets – says the federal government should just get on with purchasing some permanent replacements for its warplane fleet.

As the probe into U.S. President Donald Trump's campaign last year and its ties to Russia continues, the Washington Post is reporting that his campaign chairman, Paul Manafort, at one point offered private briefings to a Russian billionaire with close ties to the Kremlin.

And emails obtained by iPolitics show diplomatic officers were scrambling when Stéphane Dion was given an unusual double diplomatic posting earlier this year in both Germany and the European Union. "I'm confused on timing," one diplomat wrote at the time. "Join the confused club," said another.

The Globe editorial board on Boeing, Bombardier and Mr. Trudeau: "That Boeing would go after Bombardier despite offering no models that directly compete with the C-series is more than a little weird. And in any case, other aerospace companies, including Boeing, all receive vast government assistance. What's more, all businesses sometimes hawk new products at deep discounts."

Michael Byers (Globe and Mail) on Boeing: "Mr. Trudeau, by trying to strong-arm Boeing, is undermining these processes and Canada's long-term interest in an international legal system that protects countries and companies against arbitrary and unfounded actions."

Colin Busby and Ake Blomqvist (Globe and Mail) on the Liberal tax proposal: "Even though the federal government has brought issues with the current tax system under the microscope, to doctors their tax structure was simply a part of their negotiated compensation package with the provinces. These negotiations are never easy: Provincial governments and doctors cannot exert financial pressure on one another when negotiations get tough – doctors are not allowed to strike and governments cannot effectively contract replacement services."

Chantal Hébert (Toronto Star) on the Conservative opposition to tax changes: "As a rule, it takes more than a few weeks in any given sitting of the House of Commons for opposition attacks on the government to reach fever pitch. In this case that level has already been reached. The next few months promise to test the vocal chords of the Conservative caucus — and the nerves of everyone else."

Anita Olsen Harper (Calgary Herald) on training for judges: "All judges should be made aware that they are not exempt from the The Reconciliation Commission's calls to action, which, of the 94 recommendations, 19 per cent pertain to justice. In the name of reconciliation, they can start assuming a collective responsibility that corrects past injustices by helping restore old traditions that had always kept Indigenous societies healthy and intact."