Doctors of BC, along with the CMA, urges the federal government to reconsider its position on increasing capital gains

When the federal government released the 2024 budget on April 16, it included an increase to the capital gains inclusion rate from 50% to 66.7% for corporations and trusts, and for individuals the capital gains would increase from 50% to 66.7% on the amount above $250,000. Government’s reasoning is to improve the tax system by trying to ensure all types of income are taxed similarly, as well as creating a way to make the wealthy pay more to support things like housing and health care for all Canadians.

The problem with this proposal is that incorporated physicians who are in the middle, such as community doctors who are already struggling to pay their office staff, office lease and utilities, insurance premiums, etc., will be adversely affected when this takes effect in June 2024. They are not the federal government’s target demographic, but they are the ones paying the price.

Doctors of BC supports the CMA in its call for the federal government to reverse its position on increasing the capital gains inclusion rate for small businesses. Many community-based physicians have incorporated their practices as a means of efficiently delivering health services to Canadians. Their professional corporation is also a means of saving for retirement since most doctors do not have access to employer benefits or pension plans.

The proposed increase to the capital gains inclusion rate adds yet another burden to doctors during a time when our health system and the providers within it are already under constant strain. Our concern is this change could dissuade doctors from opening or keeping their practices as a corporation, which in turn could impact patient care.