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Speaker again, Pelosi sees ‘new dawn’ for 116th Congress

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WASHINGTON — Cheering Democrats returned Nancy Pelosi to the House speaker’s post Thursday as the 116th Congress ushered in a historically diverse freshman class eager to confront President Donald Trump in a new era of divided government.

Pelosi, elected speaker 220-192, took the gavel saying U.S. voters “demanded a new dawn” in the November election that swept the Democrats to a House majority and are looking to “the beauty of our Constitution” to provide checks and balances on power. She faced 15 dissenting votes from fellow Democrats.

For a few hours, the promise of a new era was the order of the day. The new speaker invited scores of lawmakers’ kids to join her on the dais as she was sworn in, calling the House to order “on behalf of all of America’s children.”

Even Trump congratulated her during a rare appearance at the White House briefing room, saying her election by House colleagues was “a tremendous, tremendous achievement.” The president has tangled often with Pelosi and is sure to do so again with Democrats controlling the House, but he said, “I think it’ll be a little bit different than a lot of people are thinking.”

As night fell, the House quickly got to work on the partial government shutdown, which was winding up Day 13 with Trump demanding billions in Mexican border wall funding to bring it to an end. Democrats approved legislation to re-open the government — but without the $5.6 billion in wall money, which means it has no chance in the Republican Senate.

The new Congress is like none other. There are more women than ever before, and a new generation of Muslims, Latinos, Native Americans and African-Americans is creating a House more aligned with the population of the United States. However, the Republican side in the House is still made up mostly of white men, and in the Senate Republicans bolstered their ranks in the majority.

In a nod to the moment, Pelosi, the first female speaker who reclaimed the post she lost to the GOP in 2011, broadly pledged to make Congress work for all Americans — addressing kitchen table issues at a time of deep economic churn — even as her party readies to challenge Trump with investigations and subpoena powers that threaten the White House agenda.

Pelosi promised to “restore integrity to government” and outlined an agenda “to lower health costs and prescription drug prices and protect people with pre-existing medical conditions; to increase paychecks by rebuilding America with green and modern infrastructure from sea to shining sea.”

The day unfolded as one of both celebration and impatience. Newly elected lawmakers arrived, often with friends and families in tow, to take the oath of office and pose for ceremonial photos. Then they swiftly turned to the shutdown.

Vice-President Mike Pence swore in newly elected senators, but Senate Republicans under Majority Leader Mitch McConnell had no plans to consider the House bills unless Trump agreed to sign them into law. That ensured the shutdown would continue, clouding the first days of the new session.

McConnell said that Republicans have shown the Senate is “fertile soil for big, bipartisan accomplishments,” but that the question is whether House Democrats will engage in “good governance or political performance art.”

It’s a time of stark national political division that some analysts say is on par with the Civil War era. Battle lines are drawn not just between Democrats and Republicans but within the parties themselves, splintered by their left and right flanks.

Pelosi defied history in returning to the speaker’s office after eight years in the minority, overcoming internal opposition from Democrats demanding a new generation of leaders. She will be the first to regain the gavel since Sam Rayburn of Texas in 1955.

Putting Pelosi’s name forward for nomination, Rep. Hakeem Jeffries of New York, the incoming Democratic caucus chair, recounted her previous accomplishments — passing the Affordable Care Act, helping the country out of the Great Recession — as preludes to her next ones. He called her leadership “unparalleled in modern American history.”

One Democrat, Rep. Brenda Lawrence of Michigan, cast her vote for Pelosi “on the shoulders of women who marched 100 years ago” for women’s suffrage. Newly elected Rep. Lucy McBath of Georgia, an anti-gun violence advocate, dedicated hers to her slain teenage son, Jordan Davis.

As speaker, Pelosi will face challenges from the party’s robust wing of liberal newcomers, including 29-year-old New Yorker Alexandria Ocasio-Cortez, who has risen to such prominence she is already known around the Capitol — and on her prolific social media accounts — by the nickname “AOC.” California Rep. Brad Sherman introduced articles of impeachment against Trump, though for now the measures are largely symbolic.

Republicans face their own internal battles as they decide how closely to tie their political fortunes to Trump. House GOP leader Kevin McCarthy’s name was put into nomination for speaker by his party’s caucus chair, Rep. Liz Cheney of Wyoming, the daughter of the former vice-president. He faced six “no” votes from his now-shrunken GOP minority.

As McCarthy passed the gavel to Pelosi he said voters wonder if Congress is “still capable” of solving problems, and said this period of divided government is “no excuse for gridlock.”

One office remains disputed as the House refused to seat Republican Mark Harris of North Carolina amid an investigation by state election officials of irregularities in absentee ballots from the November election.

Many GOP senators are up for re-election in 2020 in states where voters have mixed views of Trump’s performance in the White House.

Trump, whose own bid for 2020 already is underway, faces potential challenges from the ranks of Senate Democrats under Chuck Schumer.

The halls of the Capitol were bustling with arrivals, children in the arms of many new lawmakers. Visitor galleries included crooner Tony Bennett and rock legend Mickey Hart, both guests of Pelosi. Incoming White House Chief of Staff Mick Mulvaney, a former congressman, sat with Republican leaders.

Rep. Emanuel Cleaver, D-Mo., opened the House prayer asking at “a time fraught with tribalism at home and turbulence abroad” that lawmakers “become the architects of a kindlier nation.”

Overnight, Democratic Rep-elect Ilhan Omar of Minnesota tweeted a picture with her family at the airport. The House rules were being changed to allow Omar, who is Muslim, to wear a head scarf on the chamber floor. She wrote, “23 years ago, from a refugee camp in Kenya, my father and I arrived at an airport in Washington DC. Today, we return to that same airport on the eve of my swearing in as the first Somali-American in Congress.”

___

Associated Press writers Jill Colvin, Matthew Daly, Alan Fram, Kevin Freking, Mary Clare Jalonick, Laurie Kellman and Zeke J. Miller contributed to this report.

Lisa Mascaro, The Associated Press










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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax

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From the Canadian Taxpayers Federation

By Carson Binda 

BC Government promised carbon tax would reduce CO2 by 33%. It has done nothing.

The Canadian Taxpayers Federation is calling on the British Columbia government to scrap the carbon tax as new data shows the province’s carbon emissions have continued to rise, despite the oldest carbon tax in the country.

“The carbon tax isn’t reducing carbon emissions like the politicians promised,” said Carson Binda, B.C. Director for the Canadian Taxpayers Federation. “Premier David Eby needs to axe the tax now to save British Columbians money.”

Emissions data from the provincial government shows that British Columbia’s emissions have risen since the introduction of a carbon tax.

Total emissions in 2007, the last year without a provincial carbon tax, stood at 65.5 MtCO2e, while 2022 emissions data shows an increase to 65.6 MtCO2e.

When the carbon tax was introduced, the B.C. government pledged that it would reduce greenhouse gas emissions by 33 per cent.

The Eby government plans to increase the B.C. carbon tax again on April 1, 2025. After that increase, the carbon tax will add 21 cents to the cost of a litre of natural gas, 25 cents per litre of diesel and 18 cents per cubic meter of natural gas.

“The carbon tax has cost British Columbians a lot of money, but it hasn’t helped the environment as promised,” Binda said. “Eby has a simple choice: scrap the carbon tax before April 1, or force British Columbians to pay even more to heat our homes and drive to work.”

If a family fills up the minivan once per week for a year, the carbon tax will cost them $728. The carbon tax on natural gas will add $435 to the average family’s home heating bills in the 12 months after the April 1 carbon tax hike.

Other provinces, like Saskatchewan, have unilaterally stopped collecting the carbon tax on essentials like home heating and have not faced consequences from Ottawa.

“British Columbians need real relief from the costs of the provincial carbon tax,” Binda said. “Eby needs to stop waiting for permission from the leaderless federal government and scrap the tax on British Columbians.”

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The problem with deficits and debt

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From the Fraser Institute

By Tegan Hill and Jake Fuss

This fiscal year (2024/25), the federal government and eight out of 10 provinces project a budget deficit, meaning they’re spending more than collecting in revenues. Unfortunately, this trend isn’t new. Many Canadian governments—including the federal government—have routinely ran deficits over the last decade.

But why should Canadians care? If you listen to some politicians (and even some economists), they say deficits—and the debt they produce—are no big deal. But in reality, the consequences of government debt are real and land squarely on everyday Canadians.

Budget deficits, which occur when the government spends more than it collects in revenue over the fiscal year, fuel debt accumulation. For example, since 2015, the federal government’s large and persistent deficits have more than doubled total federal debt, which will reach a projected $2.2 trillion this fiscal year. That has real world consequences. Here are a few of them:

Diverted Program Spending: Just as Canadians must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from public programs such as health care and education, or potential tax relief. This fiscal year, federal debt interest costs will reach $53.7 billion or $1,301 per Canadian. And that number doesn’t include provincial government debt interest, which varies by province. In Ontario, for example, debt interest costs are projected to be $12.7 billion or $789 per Ontarian.

Higher Taxes in the Future: When governments run deficits, they’re borrowing to pay for today’s spending. But eventually someone (i.e. future generations of Canadians) must pay for this borrowing in the form of higher taxes. For example, if you’re a 16-year-old Canadian in 2025, you’ll pay an estimated $29,663 over your lifetime in additional personal income taxes (that you would otherwise not pay) due to Canada’s ballooning federal debt. By comparison, a 65-year-old will pay an estimated $2,433. Younger Canadians clearly bear a disproportionately large share of the government debt being accumulated currently.

Risks of rising interest rates: When governments run deficits, they increase demand for borrowing. In other words, governments compete with individuals, families and businesses for the savings available for borrowing. In response, interest rates rise, and subsequently, so does the cost of servicing government debt. Of course, the private sector also must pay these higher interest rates, which can reduce the level of private investment in the economy. In other words, private investment that would have occurred no longer does because of higher interest rates, which reduces overall economic growth—the foundation for job-creation and prosperity. Not surprisingly, as government debt has increased, business investment has declined—specifically, business investment per worker fell from $18,363 in 2014 to $14,687 in 2021 (inflation-adjusted).

Risk of Inflation: When governments increase spending, particularly with borrowed money, they add more money to the economy, which can fuel inflation. According to a 2023 report from Scotiabank, government spending contributed significantly to higher interest rates in Canada, accounting for an estimated 42 per cent of the increase in the Bank of Canada’s rate since the first quarter of 2022. As a result, many Canadians have seen the costs of their borrowing—mortgages, car loans, lines of credit—soar in recent years.

Recession Risks: The accumulation of deficits and debt, which do not enhance productivity in the economy, weaken the government’s ability to deal with future challenges including economic downturns because the government has less fiscal capacity available to take on more debt. That’s because during a recession, government spending automatically increases and government revenues decrease, even before policymakers react with any specific measures. For example, as unemployment rises, employment insurance (EI) payments automatically increase, while revenues for EI decrease. Therefore, when a downturn or recession hits, and the government wants to spend even more money beyond these automatic programs, it must go further into debt.

Government debt comes with major consequences for Canadians. To alleviate the pain of government debt on Canadians, our policymakers should work to balance their budgets in 2025.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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