Finance Minister Bill Morneau talks to media on tax changes for small businesses in Ottawa on Wednesday, Dec. 13, 2017.Sean Kilptarick/The Globe and Mail
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WHAT YOU NEED TO KNOW
Morneau clarifies small-business tax changes as senators blast plan
The Liberal government's controversial tax-reform proposals will go into effect on Jan. 1, Finance Minister Bill Morneau said. The federal government has released long-awaited details for the plan, which has been met with fierce criticism by small-business groups, doctors, farmers and opposition parties. Now, the Senate Finance committee is siding with the government's critics and is urging Mr. Morneau to scrap the plan altogether. Instead, the committee writes in a report, the government ought to engage in a comprehensive review of Canada's tax code and, if the government still plans on moving forward, choose Jan. 1, 2019 as the date the tax changes are rolled out.
Home prices set to climb on buyer demand in GTA: forecast
It may become even harder for first-time buyers to purchase a home. Prices across the country are set to rise almost 5 per cent as demand from buyers in the Greater Toronto Area offsets the effect of tougher mortgage rules, according to a Royal LePage forecast. While the housing market will experience a slowdown in the first half of next year as buyers adjust to the new stress test rules, a strong economy, demand from "peak" millennials and increasing immigration will eventually overcome "regulatory tinkering," Royal LePage CEO Phil Soper said. The forecast predicts a 4.9-per-cent increase in the Royal LePage national home price index – which measures home prices in 53 Canadian cities – to a national composite price of $661,919 by the end of 2018.
If you're looking for more information on Canada's real estate market, take a look at The Globe and Mail's House Price Data Centre.
Newly unveiled research chairs take aim at diversity gap in Canadian science
Four scientists, three of whom are women, will take up positions in Canadian universities next year as the first batch of Canada 150 Research Chairs. The quartet is made up of a neuroscientist, a cell biologist, a computer scientist and a mathematician. Federal Science Minister Kirsty Duncan made the announcement today and the government is framing its initiative as an opportunity to appeal to researchers at home and abroad. The one-time program, which costs $117-million, is expected to ultimately hire more than 25 research chairs, each of which will be funded for a seven-year period.
Democrat Doug Jones scores upset win over Roy Moore in Alabama
In one of the most conservative states in the United States, the Democrats eked out a victory and won a safe Republican Senate seat. Doug Jones defeated Roy Moore by 1.5 percentage points in a special election last night, held because U.S. President Donald Trump appointed Jeff Sessions as his attorney-general. The Republican party typically dominates Alabama but nominated Mr. Moore, who has been accused of sexually abusing minors. Before those allegations came to light, Mr. Moore had said that homosexual conduct should be illegal, and that Muslims shouldn't be allowed to serve in Congress. Mr. Jones rode a perfect political storm of falling approval ratings for the President, sexual assault allegations and discontent over Republican lawmakers over healthcare and tax bills to his victory. As of publication, Mr. Moore has refused to concede. His campaign says that military ballots had not yet been counted. Under Alabama law, a mandatory recount would be triggered if the final margin was within half a percentage point. Candidates can also choose to pay for a recount.
Here's what Sarah Kendzior has to write about Doug Jones' victory: "The Alabama Senate race was a national moment of soul-searching, and many Americans are relieved to find that we still have a soul. But Mr. Jones's win was no miracle. The race was won by the determination of organizers, the bravery of women who spoke out, the tenacity of black voters in the face of systemic discrimination and the persuasiveness of Jones's message, which decried corruption and promised representation for all."
Globe columnist Konrad Yakabuski writes that the the United States hasn't seen the last of Roy Moore's ilk: "Should the Trump-Bannon faction prevail, Republicans could lose their majorities in the Senate and House of Representatives in 2018. Longer-term, the party risks becoming a fringe force in U.S. politics, with a shrinking voter base consisting almost exclusively of white men and women without a college education. Mr. Trump and Mr. Bannon seem to believe that base is still large and angry enough to enable the President and like-minded Republicans to eke out victories next year and in 2020. Alabama suggests otherwise." (for subscribers)
MLSE strikes deal to buy Toronto Argonauts
Maple Leaf Sports & Entertainment, the owner of the Toronto Raptors, Maple Leafs and Toronto FC, has agreed on a deal to buy the Toronto Argonauts, the city's CFL team. The Argos, fresh off a Grey Cup victory earlier this year, will join MLSE's sports empire and the sale is expected to close in January, 2018. CFL Commissioner Randy Ambrosie indicated in a statement that he would be open to the ownership deal but the sale must still be approved by the league's board of governors.
This is the daily Evening Update newsletter, a roundup of the important stories of the day and what everyone is talking about that will be delivered to your inbox every weekday around 5 p.m. ET. If you're reading this online, or if someone forwarded this e-mail to you, you can sign up for Evening Update and all Globe newsletters here. Have feedback? Let us know what you think.
MARKET WATCH
Canada's main stock index hit a record-high close on Wednesday as gold miners gained on rising gold prices. The Toronto Stock Exchange's S&P/TSX composite index closed up 0.14 per cent to 16,136.59. On Wall Street, the S&P 500 fell as pressure grew from the financial sector after the U.S. Federal Reserve hiked interest rates, but maintained its economic outlook for the coming years. The Dow Jones Industrial Average rose 0.33 per cent to 24,585.43, the S&P 500 lost 0.05 per cent to 2,662.65 and the Nasdaq Composite added 0.2 per cent to 6,875.80.
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WHAT'S TRENDING
Calling all crossword aficionados. The annual massive holiday #GlobeCrossword is back. We'll be commenting on this post with a new clue each day until Saturday, Dec. 23, when you can pick up a copy in print. Starting Thursday, Dec. 21, Globe subscribers can download a PDF version of the crossword.
We sat down with the crossword's creator Fraser Simpson for a Q and A about what goes into making the crossword and what to expect this year that you can watch here.
TALKING POINTS
Polar bears, supermodels and Trump: We're all fact-checkers now
"The volume of information and questionable images never stops. That's exactly why it's important that everyone remember to fact-check, especially eye-catching images shared on social media, where the BBC and basement blogs get equal billing. The good news is, it's usually not that hard, since a quick search usually turns up the facts, or at least a more nuanced discussion. The bad news is that such tricky problems belie clever mottos: So, uh, if it looks too good to be true, it's probably, at the very least, more complicated." — Denise Balkissoon
New plan for fighter jet purchase is sensible – but risky
"Two years ago the Trudeau government entered office stating flat out that Canada would not buy the Lockheed Martin F-35. One year ago, it announced Canada would buy the Boeing Super Hornet as an interim fighter. Tuesday it announced Canada will buy used F-18s from Australia instead, and launched a competition that includes a provision seen as directed at Boeing. This bewildering series of developments has ended in a sensible but risky plan. Its success is entirely dependent on meeting stated timelines, something for which past experience does not bode well. Failing this, Canada's air force could find itself in the same unprecedented situation as the navy; that is, years with a loss in capability all together and with it the country's ability to defend itself." — Elinor Sloan
Why do Ottawa's lawyers keep hindering reconciliation?
"Prime Minister Justin Trudeau says his government is committed to bringing closure to "a dark and painful chapter of our history." For that to happen, Ottawa must break its lengthy and vexing pattern of litigiousness when it comes to residential-school survivors. It would be a concrete way for government to show Indigenous stories of suffering, such as Ms. Shisheesh's, the respect they deserve." — Globe and Mail Editorial Board
LIVING BETTER
Having company over at any time of the year can be a stressful and expensive endeavour. When it comes to the holiday season, that feeling can be amplified. But don't fret. Entertaining expert Laura Calder offers 10 ideas for entertaining that won't weigh you or your budget down
LONG READS FOR A LONG COMMUTE
Unfounded: These Canadians are working on the front lines of a changing system
At the start of the year, a Globe and Mail investigation found that one in five sexual assault claims are dismissed as baseless. In the months since, a group of Canadians have been on the front lines of reforming how sexual assault is policed in this country. They include government lawyers, a trauma expert, a police oversight advocate and senior police officers. The Globe's Robyn Doolittle profiles the people fighting to change the system.
In Beijing, helping freezing migrants will get you in trouble with the law
Thousands of workers who came to the country's capital from others parts of China are being evicted in the cold of winter, after the local government declared their homes unsafe. "In 2008, Beijing welcomed you. In 2016, Beijing hated you. In 2017, Beijing expelled you. In 2018, Beijing won't even bother to see you," You Juhong, one of the labourers who had migrated to Beijing, told The Globe's Nathan VanderKlippe
Evening Update is written by Mayaz Alam and Omair Quadri. If you'd like to receive this newsletter by e-mail every weekday evening, go here to sign up. If you have any feedback, send us a note.