Congressman Higgins Asks United States Trade Representative to Request Consultations Related to Canada’s Underused Housing Tax

Congressman Brian Higgins (NY-26) is asking United States Trade Representative Katherine Tai to open formal consultations with the Government of Canada to explore if the Underused Housing Tax is inconsistent with the United States-Mexico-Canada Agreement (USMCA).

In a letter to Ambassador Tai, Rep. Higgins writes, “The United States and Canada have a longstanding, cooperative, and mutually beneficial relationship. Western New York and Southern Ontario exemplify this unique bond. The UHT’s impact on Americans who own property in Canada, however, threatens our binational community and appears to be inconsistent with the USMCA.”

One of the principles of the USMCA is the requirement that all parties not discriminate against each other or provide preferential treatment solely to domestic companies or citizens, including with respect to internal taxation. Canada’s Underused Housing Tax does not apply equally to Canadian and U.S. citizens and therefore may violate these principles. The USMCA stipulates parties can request consultations with another party when trade agreement disputes arise.

Canada recently imposed a 1% tax on “vacant or underused housing” owned by non-resident, non-Canadians. The intent was to target foreign investment speculation negatively impacting affordable housing in Canada, but it is impacting good-faith, longtime cottage owners who have maintained and enjoyed living among their Canadian neighbors for years.

Higgins began sounding the alarm about the Underused Housing Tax since it was first proposed in the Government of Canada’s Budget 2021. Most recently, Higgins asked the U.S. Secretary of State to object to the Underused Housing Tax in conversations with the Government of Canada.

Outreach from frustrated U.S. residents has increased in recent weeks as the April 30th tax form deadline approaches in Canada. Congressman Brian Higgins has heard from hundreds of U.S. residents negatively impacted by the Underused Housing Tax, including over 320 property owners who completed an online survey.

Congressman Higgins is a member of the House of Representatives Ways and Means Subcommittee on Trade and serves as Co-Chair of the Northern Border Caucus and the Canada – U.S. Interparliamentary Group. His Western New York district, which includes the Cities of Niagara Falls and Buffalo, borders southern Ontario. 

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I’ve found the secret sauce for Democrats to win back power



Rather than belabor you today with the latest Trump outrages, I want to share with you conclusions I’ve drawn from my conversation yesterday with Zohran Mamdani (you can find it here and at the bottom of this piece) about why he has a very good chance of being elected mayor of New York City on Tuesday.

He has five qualities that I believe are likely to succeed in almost any political race across America today. If a 34-year-old state assemblyman representing Astoria, Queens, who was born in Uganda and calls himself a democratic socialist, can get this far and likely win, others can as well — but they have to understand and be capable of utilizing his secret sauce.

Here are the five ingredients:

  1. Authenticity. Mamdani is the real thing. He’s not trying to be someone other than who he is, and the person he is comes through clear as a bell. I’ve been around politicians for most of my life (even ran once for governor of Massachusetts) and have seen some who are slick, some who are clever, some who are witty, some who are stiff, but rarely have I come across someone with as much authenticity as Mamdani. Authenticity is the single most important quality voters are looking for now: someone who is genuine. Who’s trustworthy because they project credibility and solidity. Whose passion feels grounded in reality.
  2. Concern for average working people. Mamdani isn’t a policy wonk who spouts 10-point plans that cause people’s eyes to glaze over. Nor is he indifferent to policy. Listen to his answers to my questions and you’ll hear a lot about the needs of average working people. That’s his entire focus. Many politicians say they’re on the side of average working people, but Mamdani has specific ideas for making New York City more affordable. I’m not sure they’ll all work, but I’m sure voters are responding to him in part because his focus is indisputable and his ideas are clear and understandable.
  3. Willingness to take on the powerful and the wealthy. He doesn’t hesitate to say he’ll raise taxes on the wealthy to pay for what average working people need. You might think this would be standard fare for Democrats, but it’s not. These days, many are scared to propose anything like this for fear they’ll lose campaign funding from big corporations and the rich. But Mamdani’s campaign isn’t being financed by big corporations or the rich. Because of New York City’s nearly four-decade-old clean elections system that matches small-dollar donations with public money, Mamdani has had nearly $13 million of government funds to run a campaign against tens of millions of dollars that corporate and Wall Street Democrats — and plenty of Republicans — have spent to boost Democratic former governor Andrew Cuomo. We need such public financing across the nation.
  4. Inspiration. Many people are inspired by Mamdani. Over 90,000 New Yorkers are now going door-to-door canvassing for him (including my 17-year-old granddaughter). Why is he so inspiring? Again, watch our conversation. It’s not only his authenticity but also his energy, his good-heartedness, and his optimism. At a time when so many of us are drenched in the daily darkness of Trump, Mamdani’s positivity feels like sunshine. It lifts one up. It makes politics almost joyful. He gives it a purpose and meaning that causes people to want to be involved.
  5. Cheerfulness. Which brings me to the fifth quality that has made this improbable candidate into a front-runner: his remarkable cheerfulness. Watch his face during our discussion. He smiled or laughed much of the time. This wasn’t empty-headed euphoria or “morning in America” campaign rubbish. It’s directly connected to a thoughtfulness that’s rare in a politician, especially one nearing the end of a campaign — who’s had to answer the same questions hundreds if not thousands of times. He exudes a buoyancy and hope that’s infectious. It’s the opposite of the scowling Trump. It is what Americans want and need, especially now.

There’s obviously much more to it, but I think these five qualities — authenticity, a focus on the needs of average working families, a willingness to take on the rich and powerful in order to pay for what average working families need, the capacity to inspire, and a cheerfulness and buoyancy — will win elections, not only in New York City but across America.

Mamdani hasn’t won yet, and New York’s Democratic establishment is doing whatever it can to stop him (Michael Bloomberg, New York City’s billionaire former mayor, just put $1.5 million into a super PAC supporting Cuomo’s bid and urged New Yorkers to vote for Cuomo).

If Mamdani wins, his success should be a lesson for all progressives and all Democrats across America.

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  • Robert Reich is a professor of public policy at Berkeley and former secretary of labor. His writings can be found at https://robertreich.substack.com/.
  • Robert Reich's new memoir, Coming Up Short, can be found wherever you buy books. You can also support local bookstores nationally by ordering the book at bookshop.org.

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