OTTAWA,
ON, June 9, 2024 /CNW/ - The Canadian Medical
Association (CMA) is deeply disappointed in today's announcement by
Deputy Prime Minister Chrystia
Freeland that the federal government plans to proceed with
tax changes that will add undue pressure and financial strain on
physicians, undermining the stability of our health-care
system.
Canadian medical organizations from coast to coast to coast have
advocated to government in recent weeks for physicians to be exempt
from the planned increase to the capital gains inclusion rate.
Most physicians enter practice with significant debt and do not
have access to employer or government pension plans, benefits, sick
leave, parental leave or paid vacation. Moreover, physicians invest
their own money to build the necessary infrastructure to provide
care to patients, while also relying on their professional
corporations to save for important life events. When there are cost
increases to rent, insurance premiums, medical supplies or anything
else, physicians cannot simply pass those costs onto patients
because fees are set with the province or territory in which they
practise medicine.
The proposed increase to the capital gains inclusion rate
imposes yet another barrier to retaining and recruiting physicians
as the first dollar of capital gains realized in a medical
professional corporation will be subject to the higher inclusion
rate of 66.67%. Corporations are not eligible for the $250,000 yearly capital gains threshold afforded
to individuals.
In a time when Canada's health
systems are under ever increasing strain, where patients struggle
to access timely care and health care providers burn out from
trying to hold together a crumbling system, introducing new reasons
for physicians to consider scaling back community-based care is
simply the wrong move.
Dr. Joss Reimer
Dr. Kathleen Ross
CMA Presidents
About the CMA
The Canadian Medical
Association leads a national movement with physicians who believe
in a better future of health. Our ambition is a sustainable,
accessible health system where patients are partners, a culture of
medicine that elevates equity, diversity and wellbeing, and
supportive communities where everyone has the chance to be healthy.
We drive change through advocacy, giving and knowledge sharing –
guided by values of collaboration and inclusion.
SOURCE Canadian Medical Association