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
Robert Pickton to remain in medically induced coma until later this week: police
Serial killer Robert Pickton will remain in a medically induced coma for at least the next few days following an attack in a Quebec prison Sunday, according to police spokesperson Hugues Beaulieu.
Charlie Colin, founding member of the pop-rock band Train, dies at 58
Charlie Colin, bassist and founding member of the American pop-rock band Train, best known for their early-aughts hits like 'Drops of Jupiter' and 'Meet Virginia,' has died. He was 58.
'Five feet nothing': Pickton's safety likely behind Quebec transfer, says ex-prison judge
When serial killer Robert Pickton was transferred from British Columbia's Kent Institution to a maximum security prison in Quebec about six years ago, correctional authorities gave no public explanation or confirmation at the time, citing privacy.
'I feel betrayed': Ottawa-area customers out thousands of dollars warn of bad faith contractor
A group of people from eastern Ontario and western Quebec is issuing a warning about Dennis Walker and his company Vue Windows.
Fancy pigeon outfitted in custom diaper has free rein in B.C. family home
When Chrissy Chin volunteered to take in a fancy pigeon abandoned on a park bench, she never imagined she would one day be ordering custom-made diapers for the bird – who lives in her house and has become a member of the family.
'We'll need all hands on deck': Details emerge after deadly boat crash near Kingston
Police say they have wrapped up their on-scene investigation into a deadly boat crash in eastern Ontario as details of the incident begin to emerge.
WestJet planning new fare category for travellers willing to forgo carry-on bag
WestJet Airlines plans to launch a new cheaper fare category that would be available to travellers willing to fly without a carry-on bag.
5 dead and at least 35 hurt in Iowa tornado: officials
Five people died and at least 35 were hurt as powerful tornadoes ripped through Iowa Tuesday, with one carving a path of destruction through the town of Greenfield, officials said.
Woman found dead in Lake Ontario in 2017 matches identity of missing person in Switzerland
Genetic genealogy has helped Toronto police identify a woman who was found dead in Lake Ontario in 2017.