Capital Gains Tax: Pushing back

May 2, 2024

Dear Members,

I have written to Premier Danielle Smith and requested that she ask the federal government to reconsider proposed changes to capital gains taxation included in the recently announced federal budget 2024.

The proposal increases capital gains taxes for professional corporations from 50% to 67%. I do not believe this was the intent, but this is an action with retroactive affects that will have very negative consequences for physicians who rely on their professional corporations as a fundamental component of retirement planning. Tax policy should not be a blunt instrument and nuance is needed, particularly when so many small professional corporations support the fabric of the health care system.

I have given interviews to media on this topic. The Canadian Medical Association and other provincial/territorial medical associations are also speaking out. It affects all Canadian physicians when they are in the highest demand in a global competition for their talent. We need them to come and to stay in Canada. As for Alberta’s situation, this change is another straw on the camel’s back when so many are already struggling to meet their costs and plan for their futures.

There are still many large challenges facing Alberta’s health care, but we have seen some progress and support in recent months arising from our discussions with government. There is hope for much-needed stability. The federal government proposal sets back the progress we are making.

Regards,

Paul Parks
President, Alberta Medical Association
 
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