Medical body says access to health care may be impacted
Planned changes to Canada’s federal tax system that would shake up the capital gains rules could have a negative impact on the health care sector, according to an industry body.
The Canadian Medical Association says that doctors’ finances are already stretched and the additional tax burden “will add undue pressure and financial strain on physicians, undermining the stability of our health-care system.”
The CMA wants physicians to be exempt from the proposed changes, which include a higher inclusion rate for capital gains tax at 66.67%. Corporations are not eligible for the $250,000 annual capital gains threshold afforded to individuals.
In an open letter to the government, CMA presidents Dr. Joss Reimer and Dr. Kathleen Ross warn that doctors may be forced to scale back provision of community health care, which is already under pressure with patients finding it harder to access timely care.
They also shine some light on the finances of doctors, many of whom they say begin their practice with “significant debt and do not have access to employer or government pension plans, benefits, sick leave, parental leave or paid vacation.”
They also note the investment that doctors make in building the necessary infrastructure to support patients and that increases in costs such as rent, insurance premiums, and medical supplies, cannot be passed on to patients due to fees set by provincial or territorial administrations.
Business owners
The CMA’s views follow those of the Canadian Federation of Independent Business which recently called for changes to the proposed capital gains tax plans.
"The proposals in the federal budget have huge potential consequences, and many small business owners are feeling forced to make important decisions with little time and very few details," said Dan Kelly, CFIB president. "It is outrageous that the federal government has not yet shared draft legislation to allow small business owners and their advisors to understand the full implications of the capital gains changes."
