Morning Update: CRA taxing employee discounts; Harvey Weinstein fired

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Good morning,

Happy Thanksgiving. These are the top stories:

The CRA is now taxing employee discounts

The Canada Revenue Agency is going to start taxing employee discounts (for subscribers). Employer organizations long thought the new rule was a mistake, but a spokesperson for the CRA has clarified that employee discounts are now considered taxable benefits and therefore part of a person's income. The change could prompt employers to drop discounts to avoid an "administrative nightmare," Retail Council of Canada vice-president Karl Littler said.

The Liberals' tax proposals would hurt startups, investors are warning

The CRA measure comes at the same time the Liberals are being criticized for their planned tax changes. Canadian technology investors are warning that the proposals could cut off funding for startups (for subscribers). Three out of four survey respondents said they would scrap their investment in startups if changes to small-business taxes go ahead as planned. Finance Minister Bill Morneau has vowed to make sure the changes don't result in "unintended consequences for venture capitalists."

Liberal MP Wayne Long has been kicked off committees after casting a ballot criticizing his party for not consulting enough on its tax proposals. But as Campbell Clark writes, there's no easy solution to internal dissent: "It's going to be harder for Trudeau to manage his own backbench now, two years in. Most of his MPs are rookies, but now they're starting to feel they know what they're doing; it's not all about riding the wave in on Team Trudeau any more. There will be more like Mr. Long and more rumblings in the caucus." (for subscribers)

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Harvey Weinstein has been fired from his film company

Film producer Harvey Weinstein has been fired from the company he co-founded just days after a New York Times investigation detailing sexual-harassment allegations. The directors of The Weinstein Company, including brother Robert Weinstein, cited "new information about misconduct" in their decision to let him go. The Times reported that Weinstein had reached eight settlements with women over the past few decades. Weinstein took a leave of absence from the company on Friday, the same day a third of the Weinstein Co. board resigned.

The Trump administration cited the Edmonton attack as part of its call for immigration changes

The Trump administration has laid out its list of demands on immigration reform – and it includes a reference to the accused in the Edmonton attack. Somali refugee Abdulahi Hasan Sharif was ordered deported from the U.S. in 2011 but authorities released him because Somalia wasn't repatriating its citizens. The White House wants to "address" this deportation problem. Trump also wants funding to build a border wall as part of any deal to protect DACA recipients who were brought to the U.S. illegally as children.

China is clamping down on cockfighting ahead of a major Communist Party meeting

China has zeroed in on a surprising target in the lead-up to an important Communist Party meeting: cockfighting. The government has put in place a temporary ban as part of an effort to limit large gatherings where people could spread dissent or undermine social stability. It's a sign of Beijing showing extra caution ahead of the once-every-five-years meeting where the next group of top government leaders is chosen. And cockfighting isn't the only thing that's been affected. Factories around Beijing have been closed to reduce smog, a war film was pulled from theatres, a holiday was cancelled and the WhatsApp chat app has been hit with interruptions.

IN CASE YOU MISSED IT

Newtown, Orlando, Las Vegas: An American tragedy in three acts

Last week, Globe and Mail correspondent Joanna Slater went to Las Vegas to report on the mass shooting – the third time she's covered one in the U.S. after Newtown in 2012 and Orlando last year. "Each time, I hoped that I would never write about another such event again. Each time, I was wrong," she writes. "Now, I have come to Las Vegas with a different kind of question: Has the United States accepted these shootings as a way of life?" Go here to read the full story.

Germany, China lift world stocks

World shares rose on Monday, with Chinese stocks hitting 21-month highs and the German index setting a new record, while political uncertainty triggered big moves in sterling, the Turkish lira and Spanish debt. European shares rose. The pan-European STOXX 600 index added 0.2 per cent and Germany's DAX touched a record high after data showing industrial output far overshot forecasts. Britain's FTSE 100 was down 0.15 per cent just before 7 a.m. (ET). France's CAC 40 slipped 0.1 per cent while Germany's DAX advanced 0.05 per cent, giving up some of the earlier gains. In Asia, the Shanghai composite index rose 0.77 per cent while Hong Kong's Hang Seng fell 0.46 per cent. Japan's Nikkei was closed for a public holiday. U.S. stock futures were higher. Markets in Canada will be closed for Thanksgiving. U.S. crude prices were modestly higher.

WHAT EVERYONE'S TALKING ABOUT

Speaking up against sexual harassment: There's real power in numbers

"On Thursday, as I read about Harvey Weinstein's legacy of alleged harassment, I remembered all too well the pattern of someone in power abusing it accordingly. And it turns out thousands of other people recognized it, too. Rape culture is everywhere. It permeates our politics, our entertainment, our walks to school, our job interviews, our families, our social circles. We ask victims of harassment and assault what they were wearing before asking the perpetrator why they did it." – Anne T. Donahue, freelance writer based in Cambridge, Ont.

Giving thanks for Donald Trump's reverse Midas touch

"The President's reverse-polarity influence is highly unusual in a politician. He's exceptionally gifted at reorienting public opinion – but not in the direction he intends. At this rate, Washington lobbyists may have to alter their traditional pitches about gaining favour with the White House. They could well find more money to be made in ensuring their clients are badmouthed on the President's Twitter account." – Globe editorial

Justin Trudeau's Thanksgiving turkeys

"There seems to be a pattern building here. The Liberals are looking pitifully out of touch. Bill Morneau, the Finance Minister, was shocked to discover that his small-business tax reforms – meant to rein in the overly entitled, income-sprinkling, dividend-hoarding fat cats – had thrown vast numbers of constituents into a towering rage. ... The art of politics consists of figuring out how to get worthwhile things done in the real world, where things are messy. Maybe the Liberals simply underestimated people's ferocious desire to pass along their own money to their own kids. Whatever the case, their surefire crowd-pleaser turned into an enormous Thanksgiving gobbler." – Margaret Wente

HEALTH PRIMER

Weight loss is not always the answer to better health

It's time to stop using weight loss as a barometer for your health. Let's be clear: being physically active is important. But while some may benefit from losing some weight, others would be more healthy if they added some extra pounds. Building muscle is good for your heart, lungs and metabolism.

MOMENT IN TIME

Chicago's Sunday bustle

Oct. 9, 1867: In early October, 1867, a correspondent from The Globe, who happened to be in Chicago on a Sunday, reported breathlessly about the widespread commercial activity in that city. "The shop windows are not obscured by sombre blinds, but display their wares as temptingly as on a secular day." It was a big contrast to Toronto and other Canadian cities, where Sunday was a day of rest and almost everything was closed up tight. In Chicago, however, "the business streets are guiltless of any appearance of recognition of the Sabbath," The Globe's staff writer wrote. And there was no religious restraint: "At about the hour for people to congregate in the churches, an industrious farmer might be seen driving along with a load of hay, evidently looking upon this day as the one for doing odd jobs. Groceries, groggeries and saloons all seemed to be in full blast." – Richard Blackwell

Morning Update is written by Arik Ligeti.

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