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Liberal government’s proposed capital gains tax changes come into effect today

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OTTAWA – The Liberal government’s changes to capital gains taxation came into effect Tuesday, despite significant pushback from business and physicians’ groups.

Finance Minister Chrystia Freeland’s spring budget proposed making two-thirds of capital gains — the profit made on the sale of assets such as a secondary residence or stocks — taxable, rather than one-half.

For individuals’ capital gains of $250,000 or less, the inclusion rate would remain the same, at 50 per cent.

At a time when the Liberals are looking to woo back young voters, Prime Minister Justin Trudeau has pitched the effective tax increase as a way to deliver generational fairness.

The Liberal government says the $19.4 billion it expects to raise in five years due to the changes will help pay for housing and other priorities for young people.

Freeland introduced a standalone motion on the changes, which easily passed the House of Commons earlier this month.

The NDP, Bloc Québécois and Greens voted with the Liberals in favour of the motion while the Conservatives, who had been silent on the tax changes until then, voted against it.

Conservative Leader Pierre Poilievre insisted the wealthy will find ways to move their money out of Canada to avoid paying the tax, which will negatively affect farmers, small businesses, doctors and homebuilders.

The changes have sparked backlash from business groups who say that the higher inclusion rate will hurt the economy by lessening competition and innovation.

Physicians’ groups have spoken out against it as well, noting that many doctors have used their incorporated medical practices to invest and save for retirement.

But the Liberals have brushed off the opposition, arguing that only a small portion of wealthy Canadians will face a higher tax bill.

During a speech earlier this month, Freeland questioned Canada’s wealthiest on what kind of country they want to live in. The finance minister painted a bleak picture of the alternative to hiking taxes and increasing spending on health care and social services.

“Do you want to live in a country where those at the very top live lives of luxury, but must do so in gated communities behind ever-higher fences using private health care and airplanes because the public sphere is so degraded and the wrath of the vast majority of their less privileged compatriots burns so hot?” Freeland said.

Ottawa estimates that in any given year, 0.13 per cent of Canadians would pay higher taxes on their capital gains.

To encourage entrepreneurship, the government is also proposing the Canadian Entrepreneurs’ Incentive, which will reduce the inclusion rate to a third on a lifetime maximum of $2 million in eligible capital gains.

A statement by The International Monetary Fund on June 11, written by IMF staff after concluding a regularly scheduled visit to Canada, was quietly positive about the capital gains change.

The preliminary concluding statement said the change “improves the tax system’s neutrality with respect to different forms of capital income and is likely to have no significant impact on investment or productivity growth.”

This report by The Canadian Press was first published June 25, 2024.

The Canadian Press. All rights reserved.

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Jasper captive caribou breeding program slowly recovers from summer wildfire

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JASPER, Mich. – By this time, Jasper National Park’s caribou breeding centre was supposed to be nearly done, ready for pregnant cows to bed down behind its fence, safe from predators and working on replenishing the park’s diminishing herds.

This summer’s wildfire had other ideas.

“We’re still looking at putting together a restoration plan,” said Jean-Francois Bisaillon, the park’s caribou specialist.

The fire not only ravaged homes in the Jasper townsite and much-loved mountain landscapes, it also scorched plans for Canada’s first captive breeding centre for caribou.

Parks Canada is building a $40-million centre that would permanently pen up to 40 females and five males in a highly managed and monitored area of about one square kilometre surrounded by an electrified fence. The agency suggests the captive breeding could produce enough calves every year to bring Jasper’s herds to sustainable levels in a decade.

One of the park’s three herds has already disappeared and the others are down to a handful of animals.

But before that work can resume, Parks Canada has to deal with the impacts of the wildfire, which wasn’t brought under control until earlier this month.

Almost all the forest within the site that would have been used for caribou habitat was at least partly burned. About a quarter of its fenceposts were consumed, as was a good chunk of the slat fencing. Nearly all the caribou feeders were burned and electrical infrastructure damaged.

Buildings such as the barn and office storehouse were unscathed.

Still, Bisaillon says the breeding centre will still be finished by Christmas.

“We’re still planning to have the breeding centre complete, with a few weeks delay,” he said.

Bisaillon said the fact many of the buildings suffered minimal damage speaks well of the planning and fireproofing that went into their design.

“The challenge that we’re facing now is to make sure the habitat conditions are still suitable to welcome our first caribou this winter. We’re working really hard to determine what can be done in terms of vegetation restoration.”

Food and water were always going to be provided to the animals, so they won’t have to depend on natural browse.

Trees, from saplings to mature growths, are being replanted to provide cover and shade. Seeds from native plants are being sown to restore ground cover.

“You don’t want caribou to be living in mud and dirt,” Bisaillon said.

The best news is that some of the vegetation is already coming back.

“If we have a warm fall with a little bit of rain, there’s a fair chance a lot of vegetation will grow back before winter.”

Lessons have been learned. Egress routes are now being built into the centre so caribou can escape if they’re threatened by another fire.

Conservation biologists around the world are watching.

Conservation breeding has long been used for other species, particularly birds. It’s rarely been used for caribou, which, because of their specific habitat needs and their tendency to co-exist with human disturbances like forestry and energy development, are considered one of the toughest conservation challenges on the continent.

“We’re getting a lot of interest in this program,” Bisaillon said. “It’s trailblazing.

“We’re opening the way to a new tool that can be used for many species,” Bisaillon said. “If we want to be successful at recovering species at risk, we need to use many tools.”

With a little luck, Bisaillon said the centre might even be able to meet its original timetable.

“We feel pretty optimistic, though we suffered some.”

This report by The Canadian Press was first published September 28, 2024.

— By Bob Weber in Edmonton

The Canadian Press. All rights reserved.



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Critics see drug debate tainted by politicization in B.C. election campaign

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VANCOUVER – When NDP Leader David Eby announced this month that the province would open “secure facilities” to provide involuntary care forpeople with severe drug addiction or mental health problems, it represented a moment of policy unitywith the rival B.C. Conservatives ahead of the fall election.

But for drug policy advocate DJ Larkin, the consensus was loaded with irony — since the province currently isn’t able to supply enough beds even for those who want treatment, let alone those who don’t.

“This shift toward involuntary treatment is a knee-jerk reaction,” Larkin, who’s the executive director with the Canadian Drug Policy Coalition, said in an interview. “It is quite obviously a political move to try to create a simple solution to a problem that requires multiple interventions.”

With more than 15,000 lives lost to toxic drugs since the declaration of a public health emergency in B.C. in 2016, the province has been at the cutting edge of debate, science and policy about how to deal with the crisis.

Critics, including Larkin, say the issue itself has been tainted by politicization.

BC Green Leader Sonia Furstenau has accused the major parties of using “dehumanizing rhetoric” against drug users, while former chief coroner Lisa Lapointe has called plans for involuntary treatment unrealistic and lacking scientific justification.

Advocacy group Moms Stop the Harm has branded the NDP government’s rollback of a drug decriminalization project as “ludicrous,” while others say drug users are being scapegoated.

“The politicization is devastating,” said Larkin, executive director of the Canadian Drug Policy Coalition, a group of more than 50 organizations. “This rhetoric has really positioned people who use drugs as being the problem.”

Larkin said B.C.’s three-year decriminalization project and the implementation of safer supply alternatives to toxic street drugs had not been designed in a way that would be successful.

“Right now, we find ourselves at a crossroads where harm reduction and policy change is getting blamed for where we are, and there’s no evidence to support that. That is not correct,” Larkin said.

“We haven’t, however, taken robust-enough steps to be able to support programs like that to actually get the benefit that we need.”

GRIM BACKDROP FOR POLICY PUSH

The B.C. election campaign comes after the province suffered a record 2,551 drug deaths linked to the unregulated market in 2023.

The crisis has been the grim backdrop for a range of policy initiatives, including the decriminalization pilot allowing adults to carry up to 2.5 grams of opioids, cocaine, methamphetamine or ecstasy for personal use without facing charges. It relied on an exemption granted by Health Canada under the Controlled Drugs and Substances Act to permit open drug use in some public spaces.

There are also safer supply programs which provide prescription alternatives to toxic illicit drugs.

In July, Provincial Health Officer Dr. Bonnie Henry recommended exploring the idea to expand this to provide alternatives to opioids and other street drugs without a prescription. Ex-coroner Lapointe has also advocated for non-prescription access to controlled drugs.

But B.C.’s safer supply programs have come under criticism after police said some of the prescribed drugs, such as the opioid hydromorphone, were finding their way into the hands of illegal drug dealers.

Eby has repeatedly shot down suggestions for non-prescription safer supply, and in April he announced that drug use in public spaces including parks, public transit and hospitals was being recriminalized.

Leslie McBain, co-founder of the policy advocacy group Moms Stop the Harm, waspart of the working group on the decriminalization pilot project. She called the NDP’s rollback disappointing, saying it was “just political” and that the group had not been consulted.

“It also is ludicrous, because the people who are out there doing that in public places have no other place to do it because there isn’t enough housing, because there aren’t enough safe consumption services or overdose prevention sites,” she said.

Lapointe said that while it is difficult to measure the effectiveness of decriminalization, it was “not a failure.” She said statistics from the coroner now show fewer people dying post-decriminalization.

“There is a trend down in fatalities, and at this point, the last data that they released was the end of July, they are showing the lowest rate of death in this province since 2020. That’s post-decriminalization, and the number of youth dying has also reduced. That is significant.”

She said there is “little evidence” to support the effectiveness of involuntary care, so cautioned about relying on it for an “answer to this very complex public health emergency.”

The leaders of the NDP and B.C. Conservatives argue their plans are compassionate to those suffering with addiction, and would address public safety issues.

Eby pledged “secure facilities to provide involuntary care under the Mental Health Act” for those with severe addictions who are mentally ill and have sustained a brain injury. That was a shift in the party’s platform, which had previously focused on harm reduction.

The NDP said it would add more than 400 mental health beds for involuntary care at new and expanded hospitals.

“These are the people who we see in our streets, lying face down on the sidewalk, or involved in incidents with people where they’re threatening or sometimes setting fires or other disturbing conduct in communities,” he said at a news conference. “They’re not being cared for in our system right now (and) the system is not adequately responding to this group of patients,” he said, adding that involuntary care was just one part of the NDP plan.

B.C. Conservative Leader John Rustad has also promised involuntary treatment and secure facilities. But he criticized Eby’s approach, saying it would take hospital beds from other people.

“My perspective is we need to build out capacity,” he said in an interview.

“It’s going to be a big process. It’s not going to happen overnight, but it is the only way to solve this problem. Clearly, the paththat (B.C.) has been on with decriminalization and safe supply — which is not safe, it’s very dangerous drugs — is not working.”

Rustad has also said the Conservatives would shut down injection sites in Richmond, B.C., calling them “drug dens,” echoing terminology used by federal Conservative Leader Pierre Poilievre.

The Greens, meanwhile, have said they want to expand prescribed safer supply of opioids and other drugs, and to explore a non-prescription model, strategies endorsed by Lapointe, who stood with Furstenau when the party unveiled its polices on Tuesday.

Lapointe said the province would be “setting ourselves up for a disaster” if emphasis shifted to involuntary care.

“There are wait-lists for detox, there are wait-lists for recovery. If people can’t access the voluntary care that they’re trying to access, how can we then incarcerate them involuntarily when there’s no evidence that that would be successful,” she said during the news conference.

MIXED RESULTS FOR DRUG STUDIES

Research on the efficacy of strategies employed in B.C. has produced varied results.

A study published in JAMA Internal Medicine in January found an almost 63 per cent “relative increase” in the opioid overdose hospitalization rate across B.C. after the introduction of safer supply.

In an interview with The Canadian Press in April, study co-author Shawn Bugden said they were not trying to imply “causality” and the result may be due to various reasons, such as the unregulated market.

Another study, published in the British Medical Journal the same month, found that one day or more of prescription opioid dispensation was associated with “significantly reduced all-cause mortality” and overdose deaths over the next week.

In response to the push for involuntary care, Larkin cited a Swedish study published in 2022 in the journal Drug and Alcohol Dependence. It found a “very high” risk of dying immediately after discharge from compulsory care.

Some community leaders, however, say they are juggling mental health and addiction issues as well as public safety concerns and crime.

Kelowna, B.C., Mayor Tom Dyas said implementing mandatory care was “necessary.” He told a panel at the recent Union of B.C. Municipalities convention that his city saw 2,274 overdose calls in 2023, a 25 per cent increase from 2022.

“In reality, allowing these individuals with mental health and addiction issues to suffer on our streets is just not compassionate,” he said.

He said any politicization is unintentional.

“It’s a reality that all of our communities are facing, that our residents are facing, that our businesses are facing,” he said.

Larkin said a main reason for public concern about the crisis is that there are “simply more people in public spaces.”

“The issue of homelessness has been become conflated with public drug use,” Larkin said, adding that the drug supply is also more unpredictable and contaminated with benzodiazepines, which are sedatives and tranquillizers.

“That causes people to be extremely sedated, potentially for hours,” Larkin said. “So, it doesn’t necessarily mean that people are using more or there are more people who are having to use drugs in a public place, it just means people are more visible, because they’re going to be outside and look very sedated for a long time.”

The pandemic is largely to blame, Larkin said, explaining it prompted a “dramatic change toward more volatile and potent drugs.”

Lapointe said regulation was “common sense” but one of the biggest issues is that there “aren’t enough physicians to prescribe.”

“Regulating drugs is not a radical idea. It is irresponsible to allow thousands of people to die across our country without stepping in,” she said. “Regulation is common sense.”

This report by The Canadian Press was first published Sept. 28, 2024.



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LGBTQ minister Pascale St-Onge to make history with parental leave

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OTTAWA – Canadian Heritage Minister Pascale St-Onge is set to make history by becoming the first openly lesbian cabinet minister to take parental leave when her wife gives birth in the coming weeks.

“I’m not someone who really likes to talk about myself or my personal life either,” St-Onge said in an interview with The Canadian Press.

The Quebec MP said she decided to speak publicly about her parental leave because she has “a responsibility to continue the fight” for LGBTQ rights.

St-Onge smiled as she described “the joy” of soon welcoming a baby into her life, which she described as “an incredible experience that many humans go through and that some take for granted.”

Her wife’s pregnancy is going very well, St-Onge said, with a due date in November. The timing, though unplanned, is almost perfect as the House of Commons will rise for the holidays in mid-December, she added.

St-Onge plans to leave Ottawa and work virtually starting in early November. She will be able to attend debates in the House of Commons and vote remotely, as well as take part in cabinet and ministerial committee meetings, and make decisions as a minister.

“After the birth, I’ll definitely be reducing my public presence for a few weeks, but I’ll still be voting until the House rises,” she said.

St-Onge is not naming her wife in order to protect her privacy and spare her partner from the hateful comments and emails the minister receives from people she says are “trying to silence us.” She pointed to an increase in hate crimes against LGBTQ people in Canada in recent years.

A union leader for many years, St-Onge was first elected in 2021 in the riding of Brome — Missisquoi in Quebec’s Eastern Townships. She said she’s committed to fight for people who feel abandoned, and said the Liberals want “to see our society progress and be more respectful of differences.”

St-Onge claimed that Liberal governments have been responsible for many advances in the rights of LGBTQ people in Canada, starting with the decriminalization of homosexuality in 1969 by the government of former prime minister Pierre Elliot Trudeau. At the time, Trudeau famously quipped that “there’s no place for the state in the bedrooms of the nation.”

In 2005, former prime minister Paul Martin’s Liberal government legalized gay marriage. “I got married that summer,” St-Onge said.

Since forming government in 2015, the Liberals under Prime Minister Justin Trudeau have banned conversion therapy and removed the ban on blood donations from gay men.

St-Onge accused Pierre Poilievre’s Conservatives of being “the most retrograde” party in Canada, claiming they are “very focused on religious values … and want to see the country move backward” on social issues, including abortion.

In response, the Opposition leader’s office said that St-Onge’s “outrageous claims reveal the deep desperation of Justin Trudeau and his struggling Liberals,” and said the Liberals are “lying to divert attention from the misery they have inflicted on Canadians through their disastrous policies.”

“Progress means accepting that people’s — and parties’ — views can change,” spokesperson Marion Ringuette said in an email.

She pointed to Poilievre’s first speech as Conservative leader, in which he said that Canada is a country “where it doesn’t matter who you love.”

In June 2023, he said during a press conference that he wanted to make Canada “the freest country in the world … for everybody, including gays and lesbians.”

Conservative MP Melissa Lantsman is the only other openly lesbian member of Parliament. Employment Minister Randy Boissonnault is the only other cabinet minister from the LGBTQ community.

According to the Hill Times, other LGBTQ MPs include New Democrats Blake Desjarlais and Randall Garrison, Liberals Rob Oliphant and Seamus O’Regan, and Conservative Eric Duncan.

In March 1987, former deputy prime minister Sheila Copps was the first MP in the country’s history to give birth while in office.

This report by The Canadian Press was first published Sept. 28, 2024.

The Canadian Press. All rights reserved.



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