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
Amber Alert issued for 2 toddlers near Quebec City
Police have issued an Amber Alert for two children who have gone missing from near Quebec City.
Netanyahu acknowledges 'tragic mistake' after Rafah strike kills dozens of Palestinians
Israeli Prime Minister Benjamin Netanyahu acknowledged Monday that a "tragic mistake" had been made after an Israeli strike in the southern Gaza city of Rafah set fire to a tent camp housing displaced Palestinians and, according to local officials, killed at least 45 people.
Mike Tyson had medical issue on cross-country flight
Boxing legend Mike Tyson required medical attention after experiencing an 'ulcer flare up' toward the end of a cross-country flight Sunday, his representatives confirmed to the New York Post.
Why Canada's big grocery stores are under investigation
Amid mounting outrage over high grocery prices, a retail expert says there's a solution to fostering more competition in the country.
Arrests made in 'highly orchestrated' GTA auto theft operation: police
Peel Regional Police say they have arrested 16 suspects and issued arrest warrant for another 10 individuals in connection with an auto theft investigation carried out by a 'highly orchestrated criminal operation.'
Indigo Books & Music shareholders vote to approve privatization sale
Indigo Books & Music Inc. shareholders have voted to approve a deal that will see the retailer become a private company.
Quebec police investigating after entire herd of 75 cattle allegedly stolen
Quebec provincial police are investigating after an entire herd of about 75 cattle were allegedly stolen in the Eastern Townships region last week.
B.C. senior prepares to move due to devastating effects of fraud
A Courtenay, B.C., senior is downsizing and packing to move as she comes to accept she can no longer afford to stay in her home, after falling victim to a scam that robbed her of her life savings worth more than $100,000.
Canada pledges visas for 5,000 Gaza residents related to Canadians
Canada said on Monday it would grant temporary visas to 5,000 Gaza residents under a special program for Canadians' relatives living in the war-torn enclave, a preparatory move in case they are able to leave in the future.