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Trump squabbles with Democrats before speech on unity

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WASHINGTON — The bitter partisanship of the past two years was on full display Tuesday just hours before President Donald Trump was to call for optimism and unity in his State of the Union address.

Senate Minority Leader Chuck Schumer of New York seems to have triggered the latest Trump twitter outburst when he said on the Senate floor that the president talks about unity in his annual addresses to the nation but “spends the other 364 days of the year dividing us.” He accused Trump of “blatant hypocrisy.”

Minutes later, Trump tweeted that Schumer hadn’t even seen the speech and was “just upset that he didn’t win the Senate, after spending a fortune.”

Skepticism was already expected from both sides of the aisle for Trump’s televised address to lawmakers and the nation. Democrats, emboldened after the midterm elections and the recent shutdown fight, see little evidence that the president is willing to compromise. Even Trump’s staunchest allies know that bipartisan rhetoric read off of a teleprompter is usually undermined by scorching tweets and unpredictable policy manoeuvrs.

The deeply personal attacks show the challenge for Trump as he attempts a reset with Congress. Still, the fact that his advisers feel a need to try a different approach is a tacit acknowledgement that the president’s standing is weakened as he begins his third year in office.

The shutdown left some Republicans frustrated over his insistence on a border wall, something they warned him the new Democratic House majority would not bend on. Trump’s approval rating during the shutdown dipped to 34 per cent, down from 42 per cent a month earlier, according to a recent survey conducted by The Associated Press-NORC Center for Public Affairs Research.

White House press secretary Sarah Sanders indicated the president would highlight what he sees as achievements and downplay discord.

“You’re going to continue see the president push for policies that help continue the economic boom,” Sanders said Monday night while appearing on “Hannity” on Fox News. “You’re also going to see the president call on Congress and say, ‘Look, we can either work together and get great things done or we can fight each other and get nothing done.’ And frankly, the American people deserve better than that.”

But Washington’s most recent debate offered few signs of co-operation between Trump and Democrats. Under pressure from conservative backers, Trump refused to sign a government funding bill that did not include money for his long-sought border wall. With hundreds of thousands of Americans missing paychecks, Trump ultimately agreed to reopen the government for three weeks to allow negotiations on border security to continue.

With the new Feb. 15 funding deadline looming, Trump is expected to use his address to outline his demands, which still include funding for a wall along the U.S.-Mexico border. He’s teased the possibility of declaring a national emergency to secure wall funding if Congress doesn’t act, though it appeared unlikely he would take that step Tuesday night. Advisers have also been reviewing options to secure some funding without making such a declaration.

“You’ll hear the State of the Union, and then you’ll see what happens right after the State of the Union,” Trump told reporters.

The president’s address marks the first time he is speaking before a Congress that is not fully under Republican control. House Speaker Nancy Pelosi, who won plaudits from Democrats for her hardline negotiating tactics during the shutdown, will be seated behind the president — a visual reminder of Trump’s political opposition.

In a letter Monday night to House Democrats, Pelosi wrote that she hopes “we will hear a commitment from the President on issues that have bipartisan support in the Congress and the Country, such as lowering the price of prescription drugs and rebuilding America’s infrastructure.”

In the audience will be several Democrats running to challenge Trump in 2020, including Sens. Kamala Harris of California, Cory Booker of New Jersey, Elizabeth Warren of Massachusetts and Kirsten Gillibrand of New York.

Another Democratic star, Stacey Abrams, will deliver the party’s response to Trump. Abrams narrowly lost her bid in November to become Georgia’s first black governor, and party leaders are aggressively recruiting her to run for Senate.

Schumer earlier previewed Democrats’ message for countering Trump, declaring Monday, “The number one reason the state of the union has such woes is the president.”

While Trump was still putting the final touches on the speech Tuesday, he was expected to use some of his televised address to showcase a growing economy. Despite the shutdown, the U.S. economy added a robust 304,000 jobs in January, marking 100 straight months of job growth. That’s the longest such period on record.

Trump and his top aides have also hinted that he is likely to use the address to announce a major milestone in the fight against the Islamic State group in Syria. Despite the objections of some advisers, Trump announced in December that he was withdrawing U.S. forces in Syria.

In a weekend interview with CBS, Trump said efforts to defeat the IS group were “at 99 per cent right now. We’ll be at 100.”

U.S. officials say the Islamic State group now controls less than 10 square kilometres (3.9 square miles) of territory in Syria, an area smaller than New York’s Central Park. That’s down from an estimated 400 to 600 square kilometres (155 to 230 square miles) that the group held at the end of November before Trump announced the withdrawal, according to two officials who were not authorized to discuss the matter publicly and spoke on condition of anonymity.

However, a Defence Department inspector general report released Monday said the Islamic State group “remains a potent force of battle-hardened and well-disciplined fighters that could likely resurge in Syria” absent continued counterterrorism pressure. According to the Pentagon, the group is still able to co-ordinate offensives and counteroffensives.

Administration officials say the White House has also been weighing several “moonshot” goals. An announcement is expected on a new initiative aimed at ending transmissions of HIV by 2030. “He will be asking for bipartisan support to make that happen,” said White House counsellor Kellyanne Conway.

Trump’s guests for the speech include Anna Marie Johnson, a 63-year-old woman whose life sentence for drug offences was commuted by the president, and Joshua Trump, a sixth-grade student from Wilmington, Delaware, who was allegedly bullied because of his last name. They will sit with first lady Melania Trump during the address.

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Associated Press writers Catherine Lucey, Zeke Miller, Darlene Superville, Matthew Lee and Lolita C. Baldor contributed to this report.

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Follow Julie Pace at http://twitter.com/jpaceDC

Julie Pace, 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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