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 Today is   in Ottawa and Canadians will hear plenty of promises about prosperity, investment, affordability and fiscal ...
11/05/2026



Today is in Ottawa and Canadians will hear plenty of promises about prosperity, investment, affordability and fiscal responsibility. This spin will be echoed throughout the media over the next few days as it has through every successive party platform throughout history.

This isn't a Liberal Party of Canada | Parti libéral du Canada or Conservative Party of Canada - Parti conservateur du Canada problem. Every government has an incentive to present its record in the most favourable light possible.

But before blindly digesting the political narrative, here are five tests Canadians should apply as a defence against confirmation bias, selective framing and political spin.

𝟭. 𝗧𝗵𝗲 𝗟𝗮𝗻𝗴𝘂𝗮𝗴𝗲 𝗧𝗲𝘀𝘁 — 𝗗𝗶𝗱 𝗧𝗵𝗲𝘆 𝗖𝗵𝗮𝗻𝗴𝗲 𝘁𝗵𝗲 𝗪𝗼𝗿𝗱𝘀 𝗼𝗿 𝘁𝗵𝗲 𝗥𝗲𝗮𝗹𝗶𝘁𝘆?

When spending becomes an investment, or an operating deficit becomes a balanced budget, ask whether the underlying financial obligations actually changed.

𝟮. 𝗧𝗵𝗲 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗧𝗲𝘀𝘁 — 𝗪𝗵𝗮𝘁 𝗔𝗿𝗲𝗻'𝘁 𝗧𝗵𝗲𝘆 𝗖𝗼𝘂𝗻𝘁𝗶𝗻𝗴?

A falling deficit sounds impressive. When spending is described as investment, or a balanced operating budget is presented as evidence of fiscal balance, ask whether total spending, borrowing and financial obligations have actually improved.

𝟯. 𝗧𝗵𝗲 𝗖𝗼𝗺𝗽𝗮𝗿𝗶𝘀𝗼𝗻 𝗧𝗲𝘀𝘁 — 𝗖𝗼𝗺𝗽𝗮𝗿𝗲𝗱 𝘁𝗼 𝗪𝗵𝗮𝘁, 𝗘𝘅𝗮𝗰𝘁𝗹𝘆?

When politicians celebrate economic growth, ask whether they're comparing real or nominal GDP, total GDP or GDP per person, actual results or optimistic projections.

A statistic can be accurate and still be misleading.

𝟰. 𝗧𝗵𝗲 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗥𝗲𝗮𝗹𝗶𝘁𝘆 𝗧𝗲𝘀𝘁 — 𝗪𝗵𝗲𝗿𝗲'𝘀 𝘁𝗵𝗲 𝗕𝗲𝗲𝗳?

Billions in announced investments and thousands of promised jobs make great headlines. But where's the actual productive output, private investment, measurable return and improvement in Canadians' purchasing power?

(Maritime Launch Services anyone?)

𝟱. 𝗧𝗵𝗲 𝗥𝗵𝗲𝘁𝗼𝗿𝗶𝗰 𝗧𝗲𝘀𝘁 — 𝗔𝗿𝗲 𝗧𝗵𝗲𝘆 𝗦𝗲𝗹𝗹𝗶𝗻𝗴 𝗨𝘀 𝗛𝗼𝗽𝗲, 𝗙𝗲𝗮𝗿 𝗼𝗿 𝗙𝗮𝗰𝘁𝘀?

Patriotism, economic anxiety and promises of prosperity are powerful tools. But does the evidence support the conclusion, or are Canadians being encouraged to cheer for a political narrative?

——————————————————-

Remember: changing the words doesn’t change the economics and changing the definition of words doesn’t change reality.

I’ll be releasing a detailed reaction video in the next couple of weeks.

Premier David Eby promised to make life simpler by eliminating seasonal clock changes. But following the November 1 tran...
11/04/2026

Premier David Eby promised to make life simpler by eliminating seasonal clock changes. But following the November 1 transition to permanent daylight saving time, businesses and government employees are discovering that changing the rules isn't quite as simple as changing the clocks.

And someone has to bear the cost of all this.
But this story is about something much bigger than daylight saving time.

Drawing on the economic principles of Frédéric Bastiat and Friedrich Hayek, I examine the unintended consequences of government policy, the opportunity costs of implementation, and why the consequences of centralized decisions are often dispersed throughout the economy.
Government can change the rules. But who bears the cost of implementing them?

BC Premier David Eby promised to make life simpler by eliminating s...

About last night… a blue wave but what will this mean for Canada/US trade? This is usually reserved for   but good to re...
11/04/2026

About last night… a blue wave but what will this mean for Canada/US trade?

This is usually reserved for but good to reflect today. This is a question of 𝗮𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝘆 and 𝗽𝗼𝘄𝗲𝗿.

In order to understand how an Executive Order might be changed, we need to understand the mechanisms and history behind it.

Donald J. Trump implemented tariffs through an Executive Order, which is very similar to the process of an Order in Council made by the Governor General under direction by Cabinet.

In both Canada and the United States, executive instruments can have the force of law without a new bill being debated and voted on by the legislature. They both are established under authority previously granted by the legislature.

Despite the legislation that support the instruments they are, in my view, a circumvention of the proper democratic process. Executive orders and orders in council are not inherently unconstitutional, but broad delegations of legislative authority can allow governments to bypass the ordinary democratic process through which laws are debated, amended, and approved.

For example, Parliament might pass legislation authorizing Cabinet to establish regulations governing a particular industry. Cabinet can then make those regulations through an order in council without returning to Parliament for every regulatory change. Canadians don’t even hear about most Orders in Council, let alone their details.

But what happens when that delegation becomes so broad that the executive effectively makes major policy decisions without meaningful legislative scrutiny? This raises serious constitutional/democratic accountability questions.

In Canada, the practice of these orders are a remnant from the monarchical system where the crown had executive authority. The modern legal framework predates the 1867 Constitution Act through the use of colonial councils, and the official records show that orders in council were used starting the first day of Confederation.

Technically, this doesn’t give unlimited authority to the Prime Minister and the Cabinet, as it is the Governor General that has to sign off on the recommendation of Cabinet. Orders in Council derive their authority from legislation or, less frequently, the royal prerogative. The historical record shows that this check on power is merely a formality even though there are strong conventions that support it. Since Confederation, refusals of Orders in Council that have been extremely limited.

The House of Commons can initiate legislation to override an order in council, but it cannot do it by motion alone. Parliament can pass a new law that overrides the order, but it has to pass both houses and get Royal Assent. Alternatively, under the Statutory Instruments Act, a joint committee can recommend disallowance of a regulation, but both chambers have to agree.

In the US, the Constitution does not expressly define executive orders or grant the president a general executive-order power. However, Article II establishes presidential executive authority, and individual orders must rest on constitutional or statutory powers.

A Democratic Congress cannot unilaterally repeal an Executive Order. An Executive Order can be repealed by the President themselves, or Congress can pass a law to override it, but that law is subject to a Presidential Veto. Such a veto is null when a law is passed through a supermajority, which means least two-thirds of members voting in both the House of Representatives and the Senate, provided a quorum is present.

With tariffs it’s even trickier because Congress delegated some of that authority to the president through prior laws (the Tariff Act of 1930 (Smoot-Hawley) under Hoover, the Trade Expansion Act of 1962 by Kennedy, the Trade Act of 1974 under Ford, and International Emergency Economic Powers Act under Carter in 1977). However, it was the Reciprocal Trade Agreements Act of 1934 under Roosevelt where Congress delegated tariff negotiating powers to the President.

However, we should remember that in the brilliance of the Framers of the Constitution, there are three branches of the US government. The Legislative, the Executive, and the Judiciary, which becomes the third check on power. The February 20, 2026 Supreme Court decision struck down Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA), but it did not eliminate his other statutory tariff powers.

As of the timing of this post, the Democrats have been declared a majority in both the House and the Senate (effective January 3, 2027), but not a supermajority, unless Republicans vote with their opponents on specific issues. Seeing the Republicans voting to cancel the tariffs will be a long shot and a low priority for some representatives, notwithstanding the likelihood of being subject to a Presidential Veto.

At what point does delegated authority stop being the implementation of legislation and become lawmaking by the executive?

America was founded on the principle that there is no king, queen or czar in charge, meaning the power is vested in the people and not the legislators. When Parliament or Congress delegates authority so broadly that the executive can effectively determine major public policy without returning to elected representatives, we ought to question whether the democratic process is functioning as intended.

After all, the purpose of representative government is not simply to elect someone who exercises power on our behalf. It is to establish limits on that power, provide accountability, and ensure that those making the decisions remain answerable to the people affected by them.

Although many Democrats ran on the cancellation of Trump’s tariff regime, I have my doubts that Canada will see any reprieve until the next election cycle.

11/02/2026

  bonus𝗪𝗵𝘆 𝗻𝗼𝘁 𝘀𝗶𝗴𝗻 𝗮𝗻 𝗮𝗹𝗹𝗶𝗮𝗻𝗰𝗲 𝗽𝗮𝗰𝘁 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗽𝗿𝗼𝘃𝗶𝗻𝗰𝗲𝘀?
10/31/2026

bonus
𝗪𝗵𝘆 𝗻𝗼𝘁 𝘀𝗶𝗴𝗻 𝗮𝗻 𝗮𝗹𝗹𝗶𝗮𝗻𝗰𝗲 𝗽𝗮𝗰𝘁 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗽𝗿𝗼𝘃𝗶𝗻𝗰𝗲𝘀?

 To add to the quote, Thomas Sowell noted that people would rather feel right than be factually correct, if the facts co...
10/31/2026


To add to the quote, Thomas Sowell noted that people would rather feel right than be factually correct, if the facts contradict their feelings.
And to Le Bon’s point, the politicians that cater to the feelings of the electorate through rhetoric rather than explaining the facts of the unintended consequences of flawed policies are usually the ones securing the popular vote.

Regarding tax planning, it’s important for Canadians to know about the General Anti-Avoidance Rules (GAAR) and how it ma...
10/29/2026

Regarding tax planning, it’s important for Canadians to know about the General Anti-Avoidance Rules (GAAR) and how it may affect financial and tax transactions they are considering.

𝗪𝗛𝗔𝗧 𝗜𝗦 𝗚𝗔𝗔𝗥

GAAR is a provision under section 245 of the Act that essentially feels like a “catch-all” that Canada Revenue Agency can apply to a transaction they feel is not within the spirit of the Income Tax Act (the Act), or one that is deemed to be an avoidance transaction, or one that lacks economic substance.

In short, CRA broad authority to potentially reassess a transaction under GAAR and under subsection 245(5.1) can impose the 𝘵𝘢𝘹 𝘵𝘩𝘢𝘵 𝘸𝘰𝘶𝘭𝘥 𝘰𝘵𝘩𝘦𝘳𝘸𝘪𝘴𝘦 𝘩𝘢𝘷𝘦 𝘣𝘦𝘦𝘯 𝘱𝘢𝘺𝘢𝘣𝘭𝘦, along with additional 𝘪𝘯𝘵𝘦𝘳𝘦𝘴𝘵 𝘢𝘯𝘥 𝘱𝘦𝘯𝘢𝘭𝘵𝘪𝘦𝘴, had the transaction - in their view or the Tax Courts’ - not been undertaken in an abusive manner.

𝗡𝗢𝗧 𝗜𝗡 𝗧𝗛𝗘 𝗦𝗣𝗜𝗥𝗜𝗧 𝗢𝗙 𝗧𝗛𝗘 𝗔𝗖𝗧

Not in the spirit of the Act refers to transactions that 𝘵𝘦𝘤𝘩𝘯𝘪𝘤𝘢𝘭𝘭𝘺 𝘤𝘰𝘮𝘱𝘭𝘺 with the wording of the law, but undermine the object, purpose, and policy intent of the legislation as a whole. In other words, even if a transaction follows the black-letter rules, it may still be considered abusive if it exploits gaps, inconsistencies, or unintended consequences in the Act to obtain a tax result Parliament never intended to allow.

𝗪𝗛𝗔𝗧 𝗜𝗦 𝗔𝗩𝗢𝗜𝗗𝗔𝗡𝗖𝗘

An avoidance transaction is one where one of the main purposes of the transaction is to obtain a tax benefit. This definition has been expanded through legislative amendments in recent years, significantly broadening the range of transactions that may be captured under GAAR.

𝗪𝗛𝗔𝗧 𝗜𝗦 𝗘𝗖𝗢𝗡𝗢𝗠𝗜𝗖 𝗦𝗨𝗕𝗦𝗧𝗔𝗡𝗖𝗘

A significant lack of economic substance means that the transaction was done for the tax benefit alone and tends to indicate misuse or abuse of the Act. This lack of economic substance test will not always mean that such a transaction is abusive, or that the transaction will be found to be abusive and therefore denied.

𝗜𝗡 𝗦𝗨𝗠𝗠𝗔𝗥𝗬

Canadians are legally entitled to arrange their financial affairs to minimize taxation. Section 245(0.1) expressly recognizes both the government's responsibility to protect the tax base and taxpayers' need for certainty in planning their affairs. It also acknowledges that taxpayers should not be prevented from obtaining benefits Parliament intended to provide.

The purpose of GAAR is not to prevent Canadians from reducing their taxes. It is to deny tax benefits obtained through abusive avoidance transactions.

In my view, attempting to DIY these transactions can expose taxpayers to risks they may not fully appreciate. Engaging qualified professionals—such as tax , tax advisors, , and —is essential to properly assess risk, intent, and compliance.

My commentary on today’s Bank of Canada rate increase of 1/4 percent
10/28/2026

My commentary on today’s Bank of Canada rate increase of 1/4 percent

The Bank of Canada has raised its overnight interest rate by 25 bas...

Board of Governors of the Federal Reserve System leaves rates unchanged at a range between 3.75-4%
10/28/2026

Board of Governors of the Federal Reserve System leaves rates unchanged at a range between 3.75-4%

Bank of Canada raises overnight rates by .25% for the first time after 7 consecutive holds. Overnight rate now at 2.50%
10/28/2026

Bank of Canada raises overnight rates by .25% for the first time after 7 consecutive holds.
Overnight rate now at 2.50%

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