Fifty-eight percent of Canadians said they are aware of the proposed capital gains tax announced in the Liberal government’s 2024 budget, and 24 percent of those surveyed initially described it as “a good idea,” Abacus Data found. Another 24 percent said it was an “OK idea,” while 35 percent opposed it.
When made aware of the impact the tax could have on Canada’s doctors, however, the level of support changed, with only 16 percent saying the tax should be implemented as is. Thirty-three percent want the proposal stopped entirely and 28 percent want exemptions for health-care providers who run community-based clinics.
Twenty percent were unsure if changes should be made to the tax, while the remaining participants said they didn’t care either way.
The survey gauged reaction to the government’s plan to tax Canadian companies on 66.7 percent of their realized capital gains, up from the current 50 percent. Individuals will pay tax on 50 percent of the first $250,000 of capital gains earned in the year, and 66.7 percent of any gain above that threshold under the new system.
The survey, conducted for the Canadian Medical Association (CMA), found widespread concerns that the tax changes would harm the health-care system and impede access to primary-care providers and specialists, Mr. Coletto added.
“Fifty-four percent to 64 percent of Canadians believe outcomes like longer wait lists for family physicians, fewer physicians becoming family physicians, or family physicians stepping away from their practice would definitely or probably happen,” he said.
CMA Pushback
The survey results come after the CMA said the plan, announced last month as part of the government’s 2024 budget, will make it more difficult to retain and recruit physicians.“We’re hearing from physicians who feel betrayed, discouraged and deflated by this latest development. We must not create more roadblocks that will add further stress to the health workforce or prevent prospective physicians from choosing to practise in Canada.”
Ottawa has maintained the changes, which it says will benefit younger Canadians, would only impact 0.13 percent of the population and 12.6 percent of businesses.
The CMA, though, said it is “deeply concerned” about what the change will mean for doctors.
“Many community-based physicians have incorporated their practices as a means of efficiently delivering health services to Canadians,” the agency said in the press release.
“Most physicians also do not have access to employer or government pension plans, benefits, sick leave, maternity leave or paid vacation nor are they able to raise fees to cover new or rising expenses. Instead, they rely on their professional corporations to save for these important life events.”
The capital gains tax hike is expected to put $19.4 billion in revenue in government coffers over five years, according to federal estimates.
