Corporations emerging as new moral authority

As a society, we struggle with drawing moral lines in the sand. It's no easy task, especially when politics is involved. 

Take, for example, the troubling case of Roy Moore, a former United States judge who is running for Senate. 

He's been accused of sexual misconduct and advances by no fewer than eight women at the time of writing. One of the accusers says she was 14 when she was sexually abused by the man, at the time in his thirties. 

Because these alleged incidents occurred so long ago (in the 1970s), there's no longer any legal recourse based on U.S. laws. It's up to the public to decide, and, so far, he still has plenty of supporters. 

The rush to defend Moore is troubling for most of us to comprehend, particularly since his accusers had no political motivation to come out with their stories. They were asked by journalists if they would be willing to finally make their stories public. Given the sudden, tidal change in our societal attitudes toward sexual assault survivors and the Me Too campaign, which has given women an opportunity like never before to be heard, it probably felt right to come out at this time. 

It's unfortunate it took this long, but as Bill Cosby's accusers would agree, their voices would have been all but silenced a few short years ago. 

In the case of any alleged crime, it's important to look at the evidence and to consider the sources. But when there's more than one woman coming out, let alone eight (over 50 in the case of Cosby), it only strengthens their case. 

Industry has chosen to move quickly and decisively in light of such allegations. Corporations in 2017 are making moral judgments like the church of the Middle Ages, firing and ex-communicating prominent individuals (Harvey Weinstein, Louis C.K., Kevin Spacey), sending them to their personal purgatory of insignificance and unemployment. 

Not only are they emerging as a new moral authority, they've become the defacto justice system. They've chosen not to wait for an archaic, ineffective court system where the O.J. Simpsons of the world can buy their innocence. 

But in the political realm, it's a different story. Politicians, to reference the U.S. president's words, can seemingly get away with murder. Bill Clinton was accused of rape before he became president (a blip on the radar at the time). Donald Trump won the presidency despite the numerous accusations against him. There was a line in the sand that both men crossed, but one that was quickly overlooked by the electorate. 

There's a shocking willingness to put on the moral blinders when it comes to advancing political agendas. The governor of Alabama said she supports Moore because he is a Republican, even though she has "no reason to disbelieve" any of the women accusers. In other words, political power at all cost, even if it means accepting a few child molesters into the Senate.  

The religious excuses are even worse. I've heard more than once that Moore's constituents forgive him "because God forgives." The most obvious fault in this logic is that Moore has not even confessed his wrongs. Even if he did, does that give one a clean slate to run for Senate?

Too often than not, our forgiveness depends on our political views. It happens on all sides of the political spectrum. 

The moral line in the sand keeps shifting. 

When taxes are no longer fun

I'm no expert on taxes. Most of us aren't, and that's what makes tax reform so difficult for the average Joe/Josephine to muddle through. 

Most of us don't even know how much taxes we pay, let alone our tax rates. Frankly, all I care about is my annual refund. Every spring it feels like I'm getting a bonus from my friends at the federal government (thanks, Justin!) This is what makes tax time so fun and exciting. 

From the sounds of it, more and more Canadians are getting in on the fun when it comes to tax relief. They include doctors, farmers, contractors – pretty much anyone who could qualify as a small business. 

It's a prudent decision to incorporate as a business, given the discrepancy in tax rates. As a small business, you'll pay a much lower tax rate (and only on your profits) than regular working people. Why pay the government up to half your personal income when you could incorporate and let your investments grow tax-free?  Why not designate your kids as employees and achieve even greater savings?

This is what some call a tax loophole. Something the federal government is trying to end, as muddled as their approach has been. It comes down to fairness, they argue. And while it won't be easy for a doctor to live with a little less (maybe foregoing that second BMW - ahem!), it might just be the right thing for government to do.

Unfortunately, the U.S. is about to move in the opposite direction. Republican leaders want to lower tax rates for the wealthiest, including the corporate tax rate that is more than double the Canadian rate (surprisingly). Since their corporate rate is as high as their personal income tax rate, it takes in more money and eliminates the issue Canada's currently dealing with.

But President Trump, along with his wealthy senators and Cabinet members, are about to solve that "problem" in a hurry. They fought to save every last penny when it came to healthcare, but when it comes to tax relief, deficits no longer matter. 

It all comes down to one's beliefs in fairness and rudimentary economics. Either you think the wealthy should pay a higher rate than the average worker, or you don't. Either you believe in the faulty, unproven theory of trickle-down economics (along with fairies and unicorns), or you don't.

As middle-income wages stagnate and the wealthiest 10% accumulate more wealth than ever before, maybe it's time to re-evaluate our tax system. Maybe after decades of cuts to Canada's corporate tax rates, it's time to admit that it's no economic panacea. Governments at all levels have been bragging about their low corporate taxes in a delusional race to the bottom. They have little to show for it but growing government debt. 

The federal government is finally awakening to the fact that if businesses don't pay their share, someone else will (like your average Joe/Josephine). 

That's when taxes become a little less fun.