As Justin Trudeau and Moneybags Morneau went around the country trying to make Canadian small business owners seem like tax cheats, Morneau was using a loophole to keep control over his Morneau-Shepell shares.
Now, the Trudeau government has voted against an NDP motion that would have closed the loophole.
As noted by the Globe & Mail, “The Trudeau Liberals used their parliamentary majority Tuesday to defeat an NDP motion on closing a loophole that allowed Finance Minister Bill Morneau to retain close control over a significant stake in his family company even as he ran a department with power to affect the fortunes of Morneau Shepell.”
The Conservatives voted with the NDP on the motion, showing a consensus among the opposition that the loophole should have been closed. Unfortunately for Canadians, the Trudeau government decided to stand with the well-connected elites instead of middle-class and working-class Canadians. As a result, the Moneybags Loophole remains open.
The MONEYBAGS LOOPHOLE
Almost everybody in the country was under the impression that Moneybags Morneau had put his Morneau-Shepell shares in a blind trust. It turns out, he didn’t. Instead, he put his shares in a holding corporation that he controlled. So, he didn’t technically own the shares personally, he controlled the company that controlled the shares. Of course, that means he controlled the shares, which is why it was a loophole.
Closing the loophole is common-sense, as it is simply outrageous that a member of the government could be making decisions at the highest level of Canada impacting the economy while also being in control of shares that would be impacted by those same decisions.
By voting for the motion, both the NDP and Conservatives demonstrated that (whatever their other flaws and differences), they are against a system being totally dominated by the elites. By contrast, the Liberals feel the elites are entitled to their entitlements.