Trudeau Targets Doctors’ Retirement Savings

Alshaar Ansari
Alshaar Ansari News Politics
5 Min Read
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Under the leadership of Prime Minister Justin Trudeau, the Liberal government has launched a brazen attack on the retirement savings of Canada’s hardworking doctors. Regardless of vehement opposition from the Canadian Medical Association (CMA)1, Health Minister Mark Holland is determined to proceed with proposed capital gains tax changes outlined in the latest budget.

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Holland, without empathy, dismisses their concerns saying these changes are “fair”. But fairness has little to do with it. The budget proposes increasing the inclusion rate for capital gains from 50% to 67% if you make over $250k in capital gains one year (and for all corporations and trusts, without any minimum threshold).

What this means is that more will be subject to tax which Ottawa says will bring in an extra $19 billion over five years but at what cost? The same professionals who risked their lives during the COVID-19 pandemic keeping Canadians safe are being asked by the government yet again to put financial security on line.

Doctors are right to worry about how these moves could impact their retirement plans given many have incorporated medical practices. Dr. Kathleen Ross, head of CMA, called it a “beat down” for an “already morally defeated and beleaguered physician workforce coming out of pandemic”.

Serious Threat To Canada's Health Care System | Scoop Canada

She said family physicians were encouraged by provinces 15-20 years ago incorporate as “saving vehicle for retirement” instead charging them more fees at time; CMA estimates this tax change could capture a whopping 8 percentage points worth of doctors’ retirement savings substantial hit against their financial futures.

More than two-thirds of Canada’s doctors are incorporated so this would be very widespread attack against the medical profession with the average gross payment being $357k per doc in 2022 including family docs, specialists and surgeons could devastate financial health.

While Trudeau dismisses fears and says this about “fairness,” Holland just makes it worse. He claims the intention is to make those who’ve “seen their wealth grow enormously” pay more so we can reduce the “enormous disparity” in society. This is rhetoric designed to turn Canadians against each other — and portrays physicians as greedy, rich people who need higher taxes.

In our recent survey on the Scoop Canada YouTube Channel, we inquired about Canadians’ perspectives on whether Trudeau’s proposed tax increase poses a threat to healthcare. The results were noteworthy, with a majority of respondents expressing agreement with the statement. Engage in the ongoing discourse and contribute your vote to ensure your viewpoint is represented on this significant issue.

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Source: Scoop Canada YouTube channel

But doctors have worked hard for their money often giving up personal time and enduring lots of stress while providing excellent patient care. It’s an insult to suggest that they only have high incomes because of unfair accumulations of wealth which denigrate much-dedicated work done by member’s professions.

Holland’s saying there’s been “misinformation” about what impact capital gains tax change will have on docs is just him trying to gaslight the medical community fact remains this will decimate the financial security of many people who’ve given everything to ensure Canadians are healthy

The actions of the Trudeau administration are a betrayal of medical professionals and undermine the healthcare system itself. This is an insult to doctors, nurses, and support staff who have given up so much during this pandemic. Instead of recognizing their hard work, the government wants to take away what they have saved for retirement under the guise of “fairness.”

This is not a fair tax change; it is a punishment against those who have served our country selflessly. The government’s narrative that doctors are rich people in need of heavier taxes could dangerously stretch an already thin healthcare system to its breaking point. If physicians start thinking about leaving or retiring early then Canadians will wait longer than ever before for care while getting even less access overall.

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The Trudeau administration needs to think again about this poorly thought through tax change and start talking constructively with healthcare providers. Otherwise, they risk driving an even bigger wedge between themselves and those on whom Canadians rely most for good health every day.

  1. Smart, Katharine. “Critical family physician shortage must be addressed: CMA.” Canadian Medical Association (2022). ↩︎

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