Alberta doctors' advocate decries federal capital-gains tax changes
Federal tax changes could soon make it difficult for people to find a family doctor, says the Alberta Medical Association.
Dr. Paul Parks, the president of the advocacy group for the province's physicians, says the changes will cripple doctors' ability to save money for things such as retirement and make it harder to keep family physicians in the country.
The federal government in its budget presented last month proposes making two-thirds rather than one-half of capital gains — or profit made on the sale of assets — taxable.
The increase in the so-called inclusion rate would apply to capital gains above $250,000 for individuals, and all capital gains realized by corporations.
Ottawa says the changes will only affect the rich, but Parks says average-income family doctors will be left paying the price.
"There's a perception that physicians are making millions of dollars a year. That's not the case," Parks told CTV News Edmonton on Friday, adding that doctors aren't eligible for retirement or pension plans so they establish professional corporations to save money and pay less tax.
He said Alberta family doctors annually are billing "in the neighbourhood of $340,000 a year."
"We know their overhead and their costs to run their business is over $250,000 a year, so maybe before taxes, they are making $80,000 to $100,000 — and many are making less — then they have to contribute into this professional corporation as a mechanism to try to save for their future, and now government is taking some of that as well."
Liberal MP Randy Boissionnault, who represents the federal Edmonton Centre riding, said while he and the finance department are willing to discuss "the unintended consequences of the capital gains tax," Ottawa wants to ensure "that the tax system is fair" and insists the change impacts only the wealthiest Canadians.
Alberta Premier Danielle Smith said the federal tax change is a move that has the potential to push doctors out of Canada, adding she has asked her finance minister to urge Ottawa to scrap the capital gains changes completely.
"We are in the process of trying to attract doctors. This is essentially telling doctors 'go work in America," Smith told CTV News on Friday.
"It has the potential to cost them a huge amount of money in their retirement savings. It's not fair to do that, to change the rules midstream. I think they need to look at other ways to balance their budget."
Chetan Dave, an economist at the University of Alberta, says he doesn't see the benefit of provincial premiers weighing in on federal taxes as they're out of their jurisdiction, adding the change in federal policy that takes effect on June 25 has advantages.
"Every policy is going to have costs and benefits. The benefit of this policy is that it equalizes tax treatment across sources of income at the upper end of the distribution. At the very least, it does that," Chetan told CTV News Edmonton, adding that the cost in the case of doctors is that most of them "especially specialists, are at the upper end of the distribution, so they are going to be negatively affected."
"Now, if you have a problem with the level of taxes, what the federal government or even provincial governments really should be doing is expanding the brackets and lowering rates, but overall, this policy is not a bad policy from an efficiency standpoint because it taxes sources of income equally now at the upper end of the distribution."
With files from The Canadian Press
CTVNews.ca Top Stories
Judge in Trump's hush money trial threatened to throw witness out of court for behavior on stand
Michael Cohen testified Monday that he stole tens of thousands of dollars from his ex-boss Donald Trump’s company, an admission defence lawyers hope to use to undermine Cohen’s credibility.
What is BORG drinking, and why is it a dangerous trend? An expert explains
If you've been to a party lately and haven't seen someone drinking a BORG, you're likely not partying with college students.
The world's best airline is paying staff a bonus of 8 months' salary
Singapore Airlines will reward its employees with a bonus worth nearly eight months of salary, a person familiar with the matter told CNN on Friday.
Oilers win Game 7 over Canucks, advance to Western Conference Final
The Edmonton Oilers weathered a late Vancouver Canucks charge on Monday night, beating the hosts 3-2 to win their seven-game second-round playoff series in the decisive showdown.
McGill says pro-Palestinian protest outside senior administrator's home 'crosses the line'
McGill University has denounced a pro-Palestinian protest held Sunday outside the home of one of its senior administrators.
Red Lobster probes 'endless shrimp' losses after bankruptcy filing
U.S.-based restaurant chain Red Lobster has filed for Chapter 11 bankruptcy protection in a Florida court after securing $100 million in financing commitments from its existing lenders, the company said on Sunday.
Katy Perry sings goodbye to 'American Idol'
Katy Perry said her goodbyes on 'American Idol' after seven seasons. On Sunday night’s live 'idol' season finale, a medley of Perry's hit songs were performed, including 'Teenage Dream,' 'Dark Horse' and 'California Gurls.'
Microsoft's AI chatbot will 'recall' everything you do on a PC
Microsoft wants laptop users to get so comfortable with its artificial intelligence chatbot that it will remember everything you're doing on your computer and help figure out what you want to do next.
Judge cites error, will reopen sentencing hearing for man who attacked Nancy Pelosi's husband
A federal judge will reopen the sentencing hearing for the man who broke into Nancy Pelosi's San Francisco home and bludgeoned her husband with a hammer after the judge failed to allow him to speak during his court appearance last week.