Monday Morning Links

Miscellaneous material to start your week.

- Steve Burgess points out that we shouldn't be the least bit surprise by the latest news of politically-connected billionaires managing to tilt the tax system in their favour. Ed Broadbent calls for a much-needed end to tax policy that favours the wealthy in efforts to avoid contributing to the public good. And Tom Parkin suggests that Murray Rankin's bill to better regulate international cash flows would offer an important starting point.

- Andy Beckett tells the story of UK Labour's left, and how it has managed to outlast multiple strains of neoliberal leadership to earn a promising opportunity to win power. And Jessica Elgot reports on John McDonnell's call for billions of pounds to be redirected from corporate giveaways to public purposes.

- The Standard discusses how the latest incarnation of the Trans-Pacific Partnership isn't a meaningful improvement over the previous versions.

- Alex MacPherson reports on the utter lack of any analysis or consultation before the Wall government decided to trash the Saskatchewan Transportation Company.

- Finally, Geoff Leo reports on the Saskatchewan Party's disappearing e-mails and other efforts to hide what they've done while in office. And Bill Waiser writes that there's plenty more to be discovered and concerned about in the Wall government's avoidance of accountability.

Tuesday Morning Links

This and that for your Tuesday reading.

- Dennis Howlett discusses what we lose when corporations are able to evade taxes, and points to some positive signs from the NDP in combating the flow of money offshore:

Federal and provincial governments lose an estimated $7.8 billion in tax revenues each year because of tax havens. The scale of the problem gets larger while the federal government cuts back on health care, food safety, rail inspections, the CBC and more.

True fiscal stewardship would recognize that staunching the flow of money offshore is the better solution. Canadian taxpayers pay the price when the CRA doesn't follow the money.
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There are some hopeful beginnings. Earlier this year, NDP National Revenue critic Murray Rankin proposed new legislation that would make it easier for government and the courts to crack down on those who are playing the system.

Rankin's bill focuses on proving "economic substance." Corporations must be able to prove a transaction has economic purpose aside from reducing the amount of tax owed. Setting up a storefront office in Cayman Islands or Switzerland and then sending large invoices back to the Canadian head office charging "management" or "licensing fees" would no longer be acceptable. Make no mistake -- there are a lot of Bay Street lawyers getting very rich taking advantage of this existing black hole in Canada's Income Tax Act.

Rankin consulted on this legislation with internationally known tax expert Robert McMechan. The Ottawa-based McMechan is the author of a recent book, Economic Substance and Tax Avoidance. He points out that the U.S, Australia and the U.K. are among the countries that have drawn the line between legitimate tax minimization and unacceptable tax avoidance.

- Karen Kamp interviews Deepak Bhargava about some ways to make the case to fight against poverty:

Americans who are struggling do not see themselves in abstract language like “the poor” or “poverty.” This is partly because such language is seen as quite pejorative in America. To be poor is to have failed in pursuit of the American Dream. In too many ways, people who are poor are reviled. The first thing we need to do is stop blaming people and start talking about their real lives.
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The entry point is connecting with common lived experiences such as not being paid enough to cover the bills, making difficult tradeoffs between basic necessities, inadequate or irregular work hours or not being able to save for retirement or college. Then you have to quickly connect it to shared values. In our research, the most powerful value was family — not only do people identify family as a primary identity but it is the fear or reality of not being able to provide enough for family members that motivates people to get into the debate or take action.
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Phrases like “struggling to make ends meet,” “living on the brink,” “working for family” describe lived experience and not identity. They also have the added benefit of crossing supposed class lines. At this point in the Great Recession, it’s become the norm to live paycheck to paycheck — whether those paychecks cover a trailer home or a two story colonial in the burbs. Thus, even if people self-identify as “lower middle class,” these tested messages resonate. 

- But then, as Joshua Sager notes, even the U.S.' general public is already broadly in favour of progressive policies - meaning that the greatest challenge is to translate that actual policy preference into political outcomes.

- Meanwhile, Stephanie Coontz discusses the new instability facing working families, while Emad Ahdavi highlights the threat to our long-term economic development posed by youth unemployment and underemployment. And Zach McDade offers some suggestions as to new investments which can both create jobs and address glaring social needs.

- Finally, Evgeny Morozov asks whether "algorithmic regulation" might render politics obsolete while effectively handing even more control over citizens' lives to the corporate sector. But I'd think there's a sharp distinction to be drawn between data-based governance and corporate-based governance - and a strong preference the former as distinct from the latter could actually encourage meaningful debate about the goals we ultimately want our governments to pursue.

Sunday Morning Links

This and that for your Sunday reading.

- Stephen Kimber makes the case for a financial transactions tax in Atlantic Business:

(W)hat can supposedly sovereign nations do when individual governments seem powerless in the face of rampant globalization and footloose capital?

Well, they could get together to create an international public counter-balance to out-of-whack corporate power and – at the least – begin to mitigate some of the worst effects of unfettered globalization.

Agreeing to a locally adopted, globally implemented financial transactions tax would be a smart start.

The idea – popularly known as the Robin Hood tax – originated with Nobel prize-winning economist James Tobin, who pitched a variation of the tax following the 1990s Asian financial crisis. Not surprisingly, his proposal has only gained traction in the wake of the 2008 global meltdown.

The miniscule tax – averaging no more than 0.05 per cent – would be tacked on to the cost of buying and selling all stocks, bonds, mutual funds, currencies, derivatives, futures, options, etc… (but not ordinary consumer transactions like credit card purchases, deposits and withdrawals).

Besides serving as a (probably only slight) brake on speculative trading, such a tax would have the more important impact of raising up to $400 billion a year.

Some of the revenue raised through the tax could be used to, in effect, either force banks to fund their own future bailouts or help underwrite economic recoveries. The rest could be put to all sorts of public goods at home and abroad, like maintaining and improving public services, fighting climate change, reducing world hunger … or some combination of the above.

- Meanwhile, Tabatha Southey's take on the Republican convention is particularly apt in calling out the deception behind small-business rhetoric:

I plan on coupling that knowledge with what I learned at the rest of the Republican convention, which is that there’s no problem that cannot be solved by opening a small business.

Unemployed? Open a small business. Underpaid? Open a small business.

Can’t afford another baby? Open a small business. Have an autistic child? Open a small business.

In a convention markedly devoid of specifics, at least there was that. I came away so hopeful: If my car won’t start, I’ll open a small business. I‘m sure a dab of small business will arrest a run appearing in my tights. Overwhip that cream? Just add a splash of small business. Syria needs more small businesses.

And every successful person at that convention could give you the reason for their success – it was born of a small business. Even though that small business may have been started three generations ago, and might have been an oil well.

I have no objection to big business, but small business was put forward at the convention the same way people always show you the baby version of any ugly-ass species of animal they want you to love.

Never mind the fact that most people aren’t in the financial position to open a small business. Or aren’t suited to run their own businesses. Or that half of all small businesses fail in their first five years.

- Luisa D'Amato writes that for all the attention paid to micro-targeting and robo-calling as some parties' preferred means of delivering a message to voters, the NDP's by-election victory in Kitchener-Waterloo can be traced in no small part to personal contact with constituents.

- Finally, after of plenty of speculation as to who might run for the NDP in Calgary Centre, Brian Malkinson has thrown his hat into the ring. And it took no time at all for environmental lawyer Murray Rankin to step up in pursuit of the nomination to succeed Denise Savoie in Victoria.