Archive for the ‘Liberals’ Category

Liberals to introduce two-year ban on foreign homebuyers in budget: sources – CP24 Toronto’s Breaking News

The Trudeau government is set to unveil a budget on Thursday that would contain multiple measures on housing affordability, including a ban on foreign homebuyers, CTV News has learned.

Sources said the Liberals will make it illegal for foreigners to buy residential properties in Canada for the next two years. The properties include condos, apartments and single residential units.

Permanent residents, foreign workers and students will be excluded from the measure, as well as foreigners buying their primary residence in Canada.

The people that will be banned are those that buy the home and never come to Canada to live in it and leave the home empty while the inventory is low and people cant buy homes, said CTV News Ottawa Bureau Chief Joyce Napier.

Prime Minister Justin Trudeau pledged during the 2021 federal election campaign that he would introduce a two-year ban on foreign homebuyers.

Other measures to be introduced in Thursdays budget include $4 billion to help municipalities update their zoning and permit systems to make way for faster construction of residential properties, $1.5 billion in loans and funding for co-op housing and $1 billion for construction of affordable housing units.

It is unclear how many units will be built under the two spending measures. The housing package is expected to total about $10 billion over the next five years.

Last week, the Ontario government announced a hike on the non-resident speculation tax and expanded it across the province.

Finance Minister Chrystia Freeland will deliver the budget on Thursday at 4 p.m.

You can stream it live on CP24.com or the CP24 app.

- With files from CTV News

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Liberals to introduce two-year ban on foreign homebuyers in budget: sources - CP24 Toronto's Breaking News

REALITY CHECK: Conservatives want the Liberals to increase budget spending by $25 Billion – New Democratic Party

The facts:

This week, Conservative MPs asked the Liberal government to increase budget spending by $25 billion while proposing no new revenue measures.

New Democrats believe it's important to be fiscally responsible with Canadians' money. That's why they proposed measures to make the very rich pay their fair share to invest in programs to help Canadians:

"The Conservatives and Liberals continue to protect the profits of the super-rich and are getting us nowhere on solving big problems people are facing now. The Liberals found a way to give billions to big oil companies while they are making record profits on the fantasy of being able to capture carbon. And while the Conservatives like to pretend they want to help you, they refuse to make the ultra-rich pay their fair share. Leaving you and your family struggling to make ends meet. While the Liberals and Conservatives protect the very rich and their profits made on the backs of people, New Democrats stand with workers and families. Every time." NDP MP Charlie Angus

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REALITY CHECK: Conservatives want the Liberals to increase budget spending by $25 Billion - New Democratic Party

Liberals expected to raise taxes on big banks, insurance companies in budget – CP24 Toronto’s Breaking News

Sarah Ritchie, The Canadian Press Published Wednesday, April 6, 2022 2:45PM EDT Last Updated Wednesday, April 6, 2022 2:45PM EDT

OTTAWA - The final message to Scotiabank shareholders from its president and CEO's annual address: a higher tax on the country's biggest banks is a tax on you.

Brian Porter called a tax hike that's widely expected to be included in Thursday's budget a knee-jerk reaction that sends the wrong message to the global investment community.

He made the comments in written remarks prepared for Tuesday's annual shareholder meeting, but he did not deliver the address in person.

The financial industry is bracing for changes to its tax rate after the confidence and supply agreement between the Liberals and the NDP included a pledge to move forward on tax changes in the near term.

NDP Leader Jagmeet Singh said Tuesday that ensuring those who have benefited from the pandemic start paying their fair share was a key element of the deal with the Liberals, though it's not clear what specific changes the government may be exploring.

During the 2021 election campaign, Prime Minister Justin Trudeau promised a corporate tax surcharge on the country's biggest banks and insurance companies.

The Liberals estimated taxing profits over $1 billion at 18 per cent instead of 15 would bring in about $1.2 billion a year.

On the campaign trail, Trudeau also promised a four-year recovery dividend that he said would be a temporary way for banks to help with the pandemic recovery, given that they've fared relatively well throughout.

The Liberals said they'll use the extra money to help Canadians struggling to afford record home prices - although that was before they struck a deal with the NDP.

The list of the parties' shared priorities now includes pressing commitments like implementing dental care for the children of low-income earners this year and creating a pharmacare program.

But some economists argue the policy doesn't make sense.

Ian Lee, a professor at the Sprott School of Business at Carleton University, said a tax hike makes for great optics.

Either directly or indirectly, they're saying 'Look, this is how we're going to go after inequality,' he said. We're going to go after those big fat rich banks.

The Canadian Bankers Association says the net income of the six largest banks was $46.6 billion in 2019, and that they collectively paid $12.7 billion in taxes to all levels of government that year.

The organization Canadians for Tax Fairness is calling for a suite of changes in this budget that it says will raise another $92 billion a year in government revenue. That includes a pandemic-based excess profits surtax on corporations, and raising the corporate tax rate to 20 per cent across the board.

Lee said a higher tax bill won't translate into lower profits for corporations, which will simply absorb the extra cost and pass it on to customers or workers.

It's just another cost of doing business. There's nothing magical or special about taxes, he said.

But the next several Liberal budgets depend on the support of the NDP, and that party wants to go further.

This shouldn't just be about banks, it should also be about big grocery chains, the big box stores, oil companies, said NDP MP Niki Ashton.

The Canadian Centre for Policy Alternatives' senior economist David Macdonald said he thinks a tax for banks is a certainty for this budget, and the question for him on Thursday is whether it goes further.

The banks, for their part, are saying little.

CIBC's president and CEO, Victor Dodig, told a group of investors during an earnings call in August that banks have always been in the crosshairs.

Most Canadians, whether through large pension plans or through their own investments, have investments in banks and they benefit from those dividends that we pay and they benefit from our economic growth, he said.

CIBC, RBC, Scotiabank and National Bank of Canada did not agree to an interview. TD Bank and BMO did not respond to a request for comment.

The Canadian Bankers Association also declined to comment, pointing to a statement it released during the election campaign arguing that bank profits maintain stability in the financial system, ensuring the safety and security of Canadians' deposits, and highlighting that many banks and their employees donate to charity.

This report by The Canadian Press was first published April 6, 2022.

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Liberals expected to raise taxes on big banks, insurance companies in budget - CP24 Toronto's Breaking News

House liberals start asking Biden to sidestep Congress months before the midterms – POLITICO

Its a remarkable pitch for a party that will retain full control of Washington, at least through the end of the year. But many lawmakers on the left the progressive wing, the Black Caucus and even some members of leadership say they have little choice after theyve passed bills on almost every piece of Bidens agenda, only to see them languish or outright die in the Senate.

And for many Democrats who are retiring or may lose their seats, this year is their last chance to see their priorities advance.

People are realizing that, at this point in the cycle, executive order is probably where youre going to start seeing more things get done, said Rep. Anthony Brown (D-Md.), ticking off still unfinished items, including voting reforms and a policing overhaul bill named for George Floyd. Browns among the Democrats eyeing the congressional exits this year; hes running for attorney general of his state.

The legislative window is rapidly closing ahead of the November elections, which threaten to send House Democrats back to the minority before theyve achieved some of their loftiest campaign promises. While they still say the Senate could take up more of Bidens goals, the new widespread focus on executive actions illustrates their intense anxiety that Congress may not deliver leaving them with nothing new to tout to voters this fall.

Senior Democrats say the shift is not a reflection of the party adopting a minority mindset, but rather an evolution toward whats more achievable with a 50-50 Senate and margins in the House that are nearly as tight.

And not all Democrats are on board, insisting they must focus on passing more party-line policies this year using the Senate filibuster workarounds of the annual budget, as well as notching bipartisan wins that can outlast a Republican taking over the White House.

But three months after Sen. Joe Manchin (D-W.Va.) knifed a House-passed social spending package that liberals packed with legislative dreams such as universal pre-K and paid leave, key factions of the House Democratic caucus have been plotting exactly what Biden can do while their own hands remain tied.

As senior Rep. John Larson (D-Conn.) quipped: Youve seen how easy thats been, right?

Executive action, its a last resort. This is a legislative body, Larson said. But there are other important issues that need to be discussed. And if the Senate isnt going to vote, theyre not going to vote.

For some liberal Democrats, its also a reflection of how many of their dearly held aims required a filibuster overhaul to get done including reforms to elections and gun control, areas where bipartisan deal-making efforts have always fallen short. And dreams of weakening the filibuster got effectively squashed last year by resistance from Manchin and Sen. Kyrsten Sinema (D-Ariz.).

Three months after Sen. Joe Manchin knifed a House-passed social spending package, key factions of the House Democratic caucus have been plotting exactly what Biden can do while their own hands remain tied.|(J. Scott Applewhite/AP Photo)

Other Democrats say executive actions are a chance for Biden to use his presidential pen to give the party a quick lift ahead of the midterms. Even if more bills are passed this Congress, they question if the benefits would make a tangible difference back home before November.

Congressional Progressive Caucus Chair Rep. Pramila Jayapal (D-Wash.) said she wanted to provide options for the White House to act right now to cut costs for Americans as gas prices are going up and other things are uncertain for people. The progressive group released its full slate of executive actions on Thursday, tackling federal student debt, criminal justice and prescription drug prices, among other issues.

Jayapals isnt the only influential House Democratic group preparing lists of potential actions for the Biden administration to take on priorities that have stalled out in Congress. That group also includes leaders of the Black Caucus, the Hispanic Caucus and the Asian Pacific American Caucus, whose leaders are talking with the White House about the policy areas where theyd like to see change.

Some of those Democrats have brought their requests to Biden himself during talks with him after the State of the Union. The Asian and Black Caucuses, who met with Biden and senior White House staff last week, raised concerns about everything from voting reform to the implementation of anti-hate crime legislation. The Hispanic Caucus, which is likely to meet with Biden soon, is drawing up executive orders to address immigration issues, both related to Ukraine and at the southern border.

Its not clear exactly which executive orders Biden might consider, and the White House did not offer a comment for this story.

If we could do voting rights whether its executive order or any way we can I think its something that we should not walk away from, Black Caucus Chair Joyce Beatty (D-Ohio) said. Her group met Wednesday to discuss potential executive actions related to voting rights and criminal justice, among other issues, and plans to discuss them further on Thursday, she said in a brief interview.

Lawmakers acknowledge the orders are hardly a substitute for legislation and could easily be undone by the next administration. Despite the prospect of legal challenges, some view Bidens executive powers as perhaps their best chance to spur immediate action.

We all agree theres no substitute for legislation and passing bills that can become laws ... but occasionally there will be needs to address this through executive action, Rep. Pete Aguilar (D-Calif.), vice chair of the caucus, said Wednesday.

Other Democrats, however, are adamant that the party shouldnt shift its focus away from Congress, particularly while they hold all levers of power.

If were talking about long-term durable policy that helps people, Congress needs to act, said Rep. Suzan DelBene (D-Wash.), who leads the centrist New Democrats Coalition. Thats our job.

Still, the push for executive actions emerged as a dominant theme at House Democrats retreat in Philadelphia last week. There, House Majority Whip Jim Clyburn endorsed the idea, even noting that the Emancipation Proclamation was an executive order. Speaker Nancy Pelosi, too, acknowledged the role of presidential powers, though she reiterated the need for Congress to pass its own bills.

House Majority Whip Jim Clyburn endorsed the idea of executive actions, even noting that the Emancipation Proclamation was an executive order.|Kevin Dietsch/AP Photo

The pressure on Biden to take action has been building for months within a frustrated House Democratic caucus, where some more liberal lawmakers have privately described him as overly cautious in wielding presidential authority.

That includes the progressive call for cancellation of student loan debt, a critical topic for younger voters. As many Democrats have beseeched Biden to act on his own to erase tens of thousands of dollars in student debt, White House press secretary Jen Psaki recently told reporters that the president is waiting for Congress to send him a bill on the subject.

But the failed push on student debt, like much of the partys to-do list, has House Democrats again pointing to the Senate.

Rep. Emanuel Cleaver (D-Mo.) joked perhaps with a scrap of seriousness that one-third of House members would like to have legislation over here to do away with the Senate. And one House Democrat could barely contain his sarcasm after the Senate, following months of delay on Bidens social spending plan, unanimously cleared a bill that would make daylight saving time permanent.

I was so concerned about the inflation we were dealing with, Larson said after the Senates surprise vote. But you know what? They fixed daylight saving time. God bless. My life has just been made.

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House liberals start asking Biden to sidestep Congress months before the midterms - POLITICO

Canada’s Liberals Are Letting the Wealthy Write Their Own Tax Policy – Jacobin magazine

Making use of a time-honored tradition in government communications, Canadas Department of Finance last Friday afternoon released its amended proposal for a tax on luxury goods. Outside of tax season, of course, most people dont visit government websites on the regular. But burying an official release in the wee hours of the working week makes it even less likely anyone will notice something potentially controversial or embarrassing. In this case, the governments timing is almost certainly owed to a new provision added to the legislation since its initial drafting last year, which reads as follows: Relief for aircraft is proposed to be expanded to take into account qualifying flights that are conducted in the course of a business with a reasonable expectation of profit.

Its a pretty soporific sequence of words, even with more context. But what it appears to mean is that Canadas governing Liberal Party plans to amend their proposed tax on new luxury cars and aircraft so that private jets used in the course of business can be written off. Revisit the language in the Liberals 2021 budget and the more detailed backgrounder published in August, and the word profit does not appear. Some possible exemptions to the tax are mentioned, but they mostly have to do with planes imported for use by hospitals, local governments, or police and fire departments.

In other words: in the roughly seven months since the government published its previous version of the legislation, a major carveout has been added that quite visibly opens the door to all kinds of avoidance by wealthy individuals. According to its Friday release, the amended draft reflect[s], and respond[s] to, input received during consultations with stakeholders, which very likely means that the owners of private jets agitated for an exemption.

It would hardly be the first time Canadas wealthy have successfully advocated for obscene carveouts in tax policy. In breaking his promise to close a $750 million stock-option loophole used almost exclusively by CEOs and other executives, former finance minister Bill Morneau claimed hed received input from many small firms and innovators to the effect that they use stock options as a legitimate form of compensation. Documents published by PressProgress, however, found that Morneau (himself a wealthy former executive) had been aggressively lobbied by corporate Canada to maintain a loophole used almost exclusively by eight thousand of the countrys wealthiest people.

Canadas tax system is riddled with absurd exemptions like this. They may be completely indefensible as extensions of the public interest, though theyre also par for the course given the imbalances of power inherent in who lobbies the government and the resources different groups have at their disposal to do so. Its a clear case of special-interest capture and class bias in policymaking but also a reminder of one of the cardinal flaws in how the liberal state conceives neutrality. On paper at least, liberal states in a representative democracy act as neutral arbiters of the public interest. Sometimes, of course, this requires policy trade-offs or the balancing of competing demands. Regardless, what emerges is supposed to be autonomous from the particularist considerations of one interest group or another.

Even in the case of something entirely noncontroversial such as a luxury-goods or stock-option-compensation tax, however, it quickly becomes obvious that many policies are rarely assembled this way. In the course of policymaking, various stakeholders lobby, agitate, and put pressure on the government, but those with the means to do so most effectively are most often monied private actors rather than public interest groups or concerned citizens. Especially when it comes to tax policies or large expenditures, the former generally have an army of lawyers, lobbyists, and PR professionals at their disposal not to mention considerable influence by virtue of their location in the economy. Except in a few exceptional cases, the latter are unlikely to be able to mobilize anything like the same reach or pressure.

The result, as looks evident here, is often policy with no significant popular buy-in and that no sensible person not being paid to think otherwise could convincingly defend.

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Canada's Liberals Are Letting the Wealthy Write Their Own Tax Policy - Jacobin magazine