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Trump, Pelosi feud heats up again

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WASHINGTON — She imperiled his State of the Union address. He denied her a plane to visit troops abroad.

The shutdown battle between President Donald Trump and House Speaker Nancy Pelosi is playing out as a surreal game of constitutional brinkmanship, with both flexing political powers from opposite ends of Pennsylvania Avenue as the negotiations to end the monthlong partial government shutdown remain stalled.

In dramatic fashion, Trump issued a letter to Pelosi on Thursday, just before she and other lawmakers were set to depart on the previously undisclosed trip to Afghanistan and Brussels. Trump belittled the trip as a “public relations event” — even though he had just made a similar warzone stop — and said it would be best if Pelosi remained in Washington to negotiate to reopen the government.

“Obviously, if you would like to make your journey by flying commercial, that would certainly be your prerogative,” wrote Trump, who had been smarting since Pelosi, the day before, called on him to postpone his Jan. 29 State of the Union address due to the shutdown.

Denying military aircraft to a senior lawmaker — let alone the speaker, who is second in line to the White House, travelling to a combat region — is very rare. Lawmakers were caught off guard. A bus to ferry the legislators to their departure idled outside the Capitol on Thursday afternoon.

The political tit-for-tat between Trump and Pelosi laid bare how the government-wide crisis has devolved into an intensely pointed clash between two leaders determined to prevail. It took place as hundreds of thousands of federal workers go without pay and Washington’s routine protocols — a president’s speech to Congress, a lawmaker’s official trip — became collateral damage.

Pelosi spokesman Drew Hammill said the speaker planned to travel to Afghanistan and Brussels to thank service members and obtain briefings on national security and intelligence “from those on the front lines.” He noted Trump had travelled to Iraq during the shutdown, which began Dec. 22, and said a Republican-led congressional trip also had taken place.

Trump’s move was the latest example of his extraordinary willingness to tether U.S. government resources to his political needs. He has publicly urged the Justice Department to investigate political opponents and threatened to cut disaster aid to Puerto Rico amid a spat with the island territory’s leaders.

Some Republicans expressed frustration. Sen. Lindsey Graham tweeted, “One sophomoric response does not deserve another.” He called Pelosi’s State of the Union move “very irresponsible and blatantly political” but said Trump’s reaction was “also inappropriate.”

While there were few signs of progress Thursday, Vice-President Mike Pence and senior adviser Jared Kushner dashed to the Capitol late in the day for a meeting with Republican Senate Majority Leader Mitch McConnell. And the State Department instructed all U.S. diplomats in Washington and elsewhere to return to work next week with pay, saying it had found money for their salaries at least temporarily.

For security reasons, Pelosi would normally make such a trip on a military aircraft supplied by the Pentagon. According to a defence official, Pelosi did request Defence Department support for overseas travel and it was initially approved. The official wasn’t authorized to speak by name about the matter, so spoke on condition of anonymity.

The official said the president does have the authority to cancel the use of military aircraft.

Rep. Adam Schiff of California slammed Trump for revealing the closely held travel plans.

“I think the president’s decision to disclose a trip the speaker’s making to a war zone was completely and utterly irresponsible in every way,” Schiff said.

Trump’s trip to Iraq after Christmas was not disclosed in advance for security reasons.

White House spokeswoman Sarah Huckabee Sanders said Trump wanted Pelosi to stay in Washington before Tuesday, a deadline to prepare the next round of paychecks for federal workers.

“We want to keep her in Washington,” Sanders said. “The president wants her here to negotiate.”

The White House also cancelled plans for a presidential delegation to travel to an economic forum in Switzerland next week, citing the shutdown. And they said future congressional trips would be postponed until the shutdown is resolved, though it was not immediately clear if any such travel — which often is not disclosed in advance — was coming up.

Trump was taken by surprise by Pelosi’s move to postpone his address and told one adviser it was the sort of disruptive move he would make himself, according to a Republican who is in frequent contact with the White House and was not authorized to speak publicly about private conversations.

While he maintained a public silence, Trump grew weary of how Pelosi’s move was being received on cable TV and reiterated fears that he was being outmanoeuvred in the public eye. Trump was delighted at the idea of cancelling Pelosi’s trip, believing the focus on the resources needed would highlight her hypocrisy for cancelling his speech, according to the Republican.

Trump has still not said how he will handle Pelosi’s attempt to have him postpone his State of the Union address until the government is reopened so workers can be paid for providing security for the grand Washington tradition.

Pelosi told reporters earlier Thursday: “Let’s get a date when government is open. Let’s pay the employees. Maybe he thinks it’s OK not to pay people who do work. I don’t.”

Trump declined to address the stalemate over the speech during a visit Thursday to the Pentagon, simply promising that the nation will have “powerful, strong border security.”

Pelosi reiterated she is willing to negotiate money for border security once the government is reopened, but she said Democrats remain opposed to Trump’s long-promised wall.

“I’m not for a wall,” Pelosi said twice, mouthing the statement a third time for effect.

The shutdown, the longest ever, entered its 28th day on Friday. The previous longest was 21 days in 1995-96, under President Bill Clinton.

In a notice to staff, the State Department said it can pay most of its employees beginning Sunday or Monday for their next pay period. They will not be paid for time worked since the shutdown began until the situation is resolved, said the notice.

The new White House travel ban did not extend to the first family.

About two hours after Trump grounded Pelosi and her delegation, an Air Force-modified Boeing 757 took off from Joint Base Andrews outside Washington with the call sign “Executive One Foxtrot,” reserved for the first family when the president is not travelling with them. It landed just before 7 p.m. at Palm Beach International Airport, less than 2 miles (3 kilometres) from the president’s private club.

A White House spokesperson did not answer questions about the flight.

___

For AP’s complete coverage of the U.S. government shutdown: https://apnews.com/GovernmentShutdown

___

Associated Press writers Jon Lemire, Matthew Daly, Mary Clare Jalonick and Lolita C. Baldor contributed to this report.

Catherine Lucey, Matthew Lee, Zeke Miller And 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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