Showing posts with label federal finance minister. Show all posts
Showing posts with label federal finance minister. Show all posts

Sunday, March 23, 2014

A More Realistic Appraisal of Jim Flaherty



If, like me, you were rather appalled by the hypocritical yet predictable enconiums offered to Jm Flaherty by his political foes, you will likely enjoy this letter from Ottawa Star reader Morgan Duchesney, who renders a far more realistic appraisal of the departing Finance Minister:

Re: Chance for a fresh start, Editorial March 19

As Jim Flaherty retires to “private life,” I wish him a speedy recovery from his lingering illness. Missing from the goodbye accolades is any mention of Flaherty’s greatest failure. Whether sick or healthy: Flaherty lacked the will to take any serious steps to collect the billions in unpaid taxes that sit safely in foreign tax shelters.

Flaherty’s tired excuse about not wanting to punish “job creators and innovators” is a bit threadbare in light of abysmal levels of corporate investment in Canada. If Canadian corporations are operating overseas while shifting profits to low-tax jurisdictions, exactly who is benefiting and just how “Canadian” are these companies if they employ foreigners and only benefit arms-length stockholders?

I challenged Flaherty’s flimsy logic whereby pursing elite tax evaders will increase the likelihood of capital flight, higher consumer prices and corporate bankruptcies. The possibility of these eventualities raises an interesting question: what do corporations receive in exchange for their taxes?

Perhaps defenders of offshore tax shelters and corporate tax cuts forget that taxes pay for education, health care, infrastructure, public administration, law enforcement and the military. Without these programs there could be no business and large businesses benefit exponentially from tax-funded public services.

Beyond the fact that he has been busy turning Canada into a tax shelter; there is a more practical reason for Flaherty’s tax shelter reticence. I expect Flaherty, like his colleague Jim Prentiss; will resurface as a banking executive. To complete the circle; his replacement, Joe Oliver shifted from investment banking to the world of politics. Perhaps it is time for some fresh ideas at Finance?


Sunday, June 9, 2013

For Your Sunday Reading Pleasure ...



Whether or not you live in Ontario, you may find Martin Regg Cohn's column of some interest in illustrating the fractured and uneven relationship that Federal Finance Minister Jim Flaherty has with the provinces. Writing in the voice of Ontario residents responding to Flaherty's finger-wagging over the MetroLinx proposal to raise the HST one point to help meet the GTHA's transit needs, he observes,

Your latest letter takes federal-provincial pugilism to a new level of aggression — lecturing and hectoring [Ont. Finance Minister] Sousa by telling him what he already knows: That he cannot create a regional GTA sales tax, a tax he has neither imposed nor proposed.

He goes on to point out Flaherty's hypocisy as well as his intransigence in meeting with his provincial counterpart to discuss federal involvement in addressing transit funding, once more underscoring the rather limited 'skill-set' (divide and conquer seems to be their default position) the Conservative Party of Canada brings to the table in federal-provincial relations.

All in all, a rather good piece of writing to enjoy on a Sunday morning.