Doctors’ Plea Dismissed by Trudeau Over Capital Gains Tax Hike

Canada‘s Prime Minister Justin Trudeau has declined the plea from doctors to reconsider the planned capital gains tax increase, emphasizing the government’s commitment to the tax hike despite concerns raised by physicians. The tax change is set to impact wealthier Canadians, including doctors who often incorporate their practices.

The issue was brought to light as Kathleen Ross, the President of the Canadian Medical Association, expressed worries about the potential consequences of the tax hike on physicians and the country’s healthcare system. Ross highlighted the financial challenges that doctors could face due to the incorporation of medical practices for retirement savings.

Speaking at the Wanuskewin Heritage Park in Saskatoon, Trudeau defended the tax hike, stressing the importance of fairness in the tax system. He argued that the measure is designed to ensure a more equitable tax burden for all income earners, especially in contrast to professionals who can leverage tax strategies to lower their tax obligations.

The proposed change, presented in the federal budget, would affect the inclusion rate of capital gains, increasing it to two-thirds from the current 50% for higher income individuals. The tax alteration is not only a point of contention for doctors but has also garnered opposition from various sectors, including former Finance Minister Bill Morneau and business organizations like the Canadian Chamber of Commerce.

In response to the concerns raised by the medical community and others, Finance Minister Chrystia Freeland‘s spokesperson, Katherine Cuplinskas, reiterated the government’s stance on the tax adjustments. Cuplinskas highlighted the government’s broader investment in healthcare and support for healthcare professionals in remote areas as part of the comprehensive approach to tax fairness and economic growth.