The Canadian Medical Association (CMA) is adding its voice to the chorus of opposition against the federal government's proposed changes to capital gains taxation, expressing concerns over the potential impact on doctors' retirement savings.
Per Financial Post, Kathleen Ross, the association's president, seeks reconsideration for medical professionals who often incorporate their practices and invest for retirement within their corporations.
What Is Capital Gains Taxation?
The federal budget revealed last week outlines plans to adjust the taxation of capital gains, proposing to tax two-thirds instead of one-half of capital gains, particularly for individuals with profits exceeding $250,000 and corporations.
The proposed changes to capital gains taxation, according to the CMA, would result in increased taxes on these investments, thereby introducing what Ross describes as "financial strain" for doctors who lack a traditional pension plan. She contends that the changes disproportionately affect certain segments of the population.
The medical community's opposition is part of a wider backlash against the proposed tax adjustments, which are anticipated to predominantly impact wealthier Canadians and businesses.
Economists, however, support the changes and argue that increasing the inclusion rate would align the taxation of capital gains more closely with other forms of income, thus improving the overall fairness of the tax system. Additionally, the government positions these adjustments to address income inequality and provide additional resources for public services like housing and healthcare.
In another defense, the federal government estimates that only a small fraction of Canadians, primarily those with higher incomes, will be impacted by the capital gains tax adjustments. However, it does little to ease groups' worries like the CMA.
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