The Canadian Medical Association (CMA) is concerned that capital gains tax changes introduced in the 2024 federal budget will have adverse effects on physician recruitment and retention across the country.
While we support the health care investments announced by the federal government last week, proposed changes to the capital gains inclusion rates will have significant negative implications for physicians as most operate their practice as a small business. These changes could jeopardize ongoing efforts across Canada to recruit and retain a high-quality health workforce.
Many community-based physicians have incorporated their practices as a means of efficiently delivering health services to Canadians. They also rely on their professional corporations as a means of saving for retirement since most do not have access to employer retirement plans. Increasing the capital gains inclusion rate for corporations will create another barrier to retaining and recruiting physicians in a time when our health system and the providers within it are already under constant strain.
Physicians now find themselves confronted with the prospect of increased financial strain, particularly as it relates to their ability to plan and save for retirement. This not only undermines the well-being of health care professionals, it jeopardizes the stability of our struggling health care system. The risk of already over-stretched physicians leaving the profession or reducing their hours in response to heightened taxation is real.
The CMA urges the federal government to reconsider these proposed tax adjustments and to take proactive steps to address the concerns raised by the medical community. Our health system and the people who work tirelessly to prop it up cannot withstand yet another setback.
Dr. Kathleen Ross
CMA President